fishery. The second approach seeks to establish quotas
(or expected catch levels) for each or a combination of
the regulated species, but attempts to make these quotas
consistent among species, and sensitive to fishing prac-
tices and species composition by geographical area.

Initially these approaches appear to be significantly
different; however, both approaches recognize common
objectives in the current management context. As such,
both approaches seek to derive the maximum benefits
from the harvesting and utilization of the overall fishery
resource, and in so doing, recognize the need to “protect”
highly valued species. The chief difference in the two ap-
proaches is the perspective they employ in seeking to
achieve the management objectives. The “biomass” ap-
proach attempts to react to events in a fishery. It allows
the fishery initial flexibility; however, because relative
values of the species in the biomass differ significantly,
trends in the harvest of certain species could require the
imposition of highly restrictive constraints to modify the
harvesting practices. Conversely, the second approach
places its emphasis on actively controlling the harvest of
key species or species groups (typically through catch or
effort allocations), based upon a careful analysis of
trends in stock abundance and fishery practices by
geographical area and seasonal period.

Both approaches require considerable information
with respect to the status of commercially valued and
vulnerable species, with estimates of acceptable levels of
harvest. Because the second approach uses this informa-
tion to directly control the harvest of key species, it is
better able to avoid the need for corrective measures

costly to the industry. Both approaches require con-
tinued monitoring of the fish stocks and catches to im-
prove the effectiveness of the management system.
However, because the “biomass” approach relies on
monitoring to reactively adjust for the excessive capture
of some species, the control exerted is loose, and con-
cerns are justifiably raised as to the ability of this ap-
proach to achieve the management objectives outlined in
Section 1.4.

Clearly the data on stock dynamics and harvesting are
subject to imprecision and inaccuracy which impact on
the efficacy of both approaches. The second approach
appears to have the advantage of not relying on the
latest available catch and survey data, which is typically
preliminary and subject to error, to establish controls on
the fishery.

The policy area of adopting an appropriate basis for
managing a multiple species fishery is, therefore, subject
to concerns for the degree of control that a management
system should exercise over the fishery. The approaches
outlined differ very little with respect to the data and
analysis required for management, but because of their
perspectives, have different implications for the achieve-
ment of management objectives. The choice between ap-
proaches involves a trade-off between perceptions of un-
desirable attributes associated with an overt manage-
ment system involving catch or effort controls, and the
risk associated with coarse control over the harvest of
key commercial species with implication for nonachieve-
ment of management objectives.


3. The determination of appropriate means by which
catch or effort allocations may be administered.

4, The determination of the desirability of permitting
additional vessels to have access to the species under
regulation.

5. The determination of an appropriate basis for
managing a multispecies fishery.

It is clear that any efforts to assist or to provide
guidance towards the resolution of the management
problems associated with this resource must in the final
analysis, given the current institutional framework, also
address these policy issues. An elaboration of these
policy issues is provided in Appendix 2.

3.0 Progress to Date on Major Tasks in the
Development of the Atlantic Dermersal Finfish FMP

The following sections contain a review of specific
research efforts conducted by the NEFMC staff in
cooperation with the technical staff of NMFS/NERO
and NMFS/NEFC, or through contractual arrange-
ments in support of the ADF FMP.

3.1 Annotated Bibliography

The compilation and preparation of an annotated
bibliography on the biology of three major demersal fin-
fish species (cod, haddock, and yellowtail flounder) has
been completed. This research effort paid special atten-
tion to Canadian and European sources (ICNAF, ICES,
etc.) along with other standard sources of biological and
fisheries literature. Though this effort was primarily
designed to gather the literature on the three major
demersal finfish species mentioned, including their in-
teractions and interdependencies, much literature has
been collected on other demersal finfish species.

3.2 Biological Descriptions of the Resource

The descriptive sections of the ADF FMP concerning
fish resources and their habits have been completed.
This task involved the preparation of a detailed
biological description (Appendix I to the FMP) of three
major demersal finfish species as well as a brief
biological description of several related demersal finfish
species focusing on species interdependencies of an
ecological and biological nature. The biological descrip-
tions contained in “Part I: Statement of the Problem,”
are abstracted from this document.

Through various contracts, or through staff research in
preparation for individual FMPs, extensive biological
descriptions have also been prepared for pollock, red and
white hakes, silver hake, and ocean perch. The Mid-
Atlantic Council is preparing biological descriptions for
butterfish and other flou ders.

3.3 Harvesting, Utilization, and Marketing Studies

The description of the commercial harvesting and
utilization of the New England and Mid-Atlantic demer-
sal finfish resource is in progress. This task consists of
several phases, some of which have been completed.
Studies of the harvesting sector are based on sections of a

series of groundfish tables which focus on the eleven
demersal finfish species from 1970 to 1978. These
groundfish tables report landings, revenues, and effort
data by gear types, GRT classes, ports of landing, fishing
areas, catch dependency and other variables. The
seasonality and by-catch studies (described in sections
3.3.1. and 3.3.2.) concentrated on otter trawl and gill net
catches, since review of the groundfish tables indicated
that these gear types accounted for an overwhelming
majority of the landings of dermersal finfish from 1970 to
1978.

3.3.1. Seasonality

A study identifying the seasonality patterns in the
New England Otter Trawl fishery for demersal finfish
has been completed. To develop measures of seasonality,
the monthly distribution of landings of the eleven
demersal finfish species in 13 landing areas (ports) from
Eastern Maine to Point Judith were examined for the
period 1970-76 and for 1978. Time periods were chosen to
provide a basis for comparing seasonality patterns
during a pre-FCMA period with those emerging in 1978.

Traditional management tools such as spawning
closures, catch quotas, mesh size regulations, and other
effort restrictions serve to limit access to the resource. In
assessing the economic impacts of any such regulations
on individual fleet sectors the seasonality in harvesting
patterns becomes an important consideration.

To allow for a broad classification of fisheries by
degree of seasonality the study selected the following
criteria:

Proportion of annual landings

harvested during the four

months which produced the

highest landings Classification

50 percent or less No Seasonality
between 50 and 75 percent Seasonality

greater than 75 percent Pronounced Seasonality

Application of these criteria, coupled with the infor-
mation in Table 1, yields the results in the classification
of fisheries by degree of seasonality as shown in Figure 3.

The preliminary computer processing has also been
completed to reveal seasonality patterns of the demersal
finfish gillnet fisheries.

3.3.2. By-catch

A study of joint species harvesting relationships (by-
catch ) is in progress. The by-catch analysis will allow
determination of the degree to which individual species
fisheries are direct fisheries. Traditionally, the term ‘by-
catch’ has applied to the harvesting of a species when the
species accounts for less than 50% of the trip catch. It is
possible to indicate the degree of by-catch (or multiple




NOAA FORM 25-13 U. S. DEPARTMENT OF COMMERCE

(1-78) « BIBLIOGRAPHIC DATA SHEET NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION
1, NOAA ACCESSION NUMBER 2 Ta -RECIPIENT’S ACCESSION NUMBER
NOAA~81022601
4 TITLE AND SUBTITLE Ss. Oct 1980.
Northeast Fishery Management Task Force, History and Status Oct
of the Atlantic Demersal Finfish Fishery Management Plan 6
7 auTHor's) Guy D, Marchesseault, Richard P, Ruais, and Der~ 8. REPORT NO.
Hsiung Wang (New England Fish. Manage. Council, Saugus, MA) NOAA=TM.
9. PERFORMING ORGANIZATION NAME AND ADDRESS 10, PROJECT/TASK NO.
NOAA, National Marine Fisheries Service,

11. CONTRACT/GRAN jO.
Woods Hole, MA, 02543 TM
Northeast Fisheries Center
12, SPONSORING ORGANIZATION NAME AND ADDRESS 13. TYPE OF REPORT AND PERIOD

COVERED

Same

Tech, Memo.

14.

15. PUBLICATION REFERENCE

NOAA Technical Memorandum NMFS-F/NEC~2, October 1980. 18 p, 5 fig, 2 tab, 2 append,

16, ABSTRACT

On June 27, 1979 the New England Fishery Management Council formally and unanimously
adopted Part I of the Atlantic Demersal Finfish FMP, which includes a definition of
the relevant management unit and appropriate management objectives for the species
under regulation, Part I: Statement of the Problem for the Atlantic Demersal
Finfish Fishery FMP, provides a basis for including within the management unit the
following species: cod, haddock, yellowtail flounder, fluke, all other flounders,
silver hake (whiting), red and white hakes, pollock, redfish, butterfish and scup.;
This combined resource complex forms the major source of incomes and benefits to the
New England and Mid-Atlantic otter trawl and fixed gear fleets as well as to recrea~
tional user-groups. The objectives adopted by the Council for the management of
these species are appended to this document, The policy area of adopting an appro~
priate basis for manageing a multiple species fishery is subject to concerns for the
degree of control that a management system should exercise over the fishery,

(Author extracted)

17, KEY WORDS AND DOCUMENT ANALYSIS.

J7A, DESCRIPTORS

*Fisheries, *Planning, Management

178. IDENTIFIERS/OPEN-ENDED TERMS

United States Northeast Coast, Demersal finfish

7c. COSATI FIELD/GROUP

8A, 5A

18. AVAILABILITY STATEMENT 19. SECURITY CLASS [21. NO. OF PAGES
(This report)

Released for distributiony Lf UNCLASSIFIED 19 pe
20. SECURITY CLASS 22. PRICE
(This report)
GUNS UNCLASSIFIED

NOAA FORM 28-13 (1~7) SUPERSEDES ALL PREVIOUS EDITIONS.





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AREA/SPECIES
OTTER TRAWLS

5Y RED & WHITE HAKE
5Z RED & WHITE HAKE
5Y HADDOCK

5Z/SA6 POLLOCK

5Y YELLOWTAIL
5Z/SA6 HADDOCK
5Z/SA6 OTHER FLOUNDER
5Y COD

5Y POLLOCK

5Z/SA6 REDFISH
5Z/SA6 COD

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5Y OTHER FLOUNDER
5Z/SA6 SCUP

5Y WHITING

5Z/SA6 BUTTERFISH
5Z/SA6 WHITING

5Y REDFISH

GILL _NETS

5Y HADDOCK
5Y RED &WHITE HAKE

5Y COD
5Y POLLOCK

ANNUAL PERCENTAGE HARVESTED AS BY-CATCH

98.7%

79.0%

74.9%

72.8%

69.5%

64.4%

62.9%

59.1%

53.4%

47.8%

15.6%
13.1%

31.8%

31.2%
24.2%

45.5%

41.2%

78.3%

57.0%

17.2%

45.8%

Figure 4. Percentages of total annual catch, in major fishing areas, of various groundfish
species taken as “by-catch” by otter trawl and gillnet (i.e.: species making up
50% or less of individual trip catch; 1978).

12

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the management decision-making process. These policy
areas are listed below.

1. The determination of appropriate annual levels of
harvest by species in the demersal finfish fishery
over some extended planning period.

2. The determination of an appropriate basis for the
distribution of benefits (arising from harvests)
among the various sectors of the industry over the
fishing year.

8. The determination of an appropriate means by
which catch or effort allocations are to be ad-
ministered.

4. The determination as to the desirability of
prohibiting additional vessels from having access to
the species under regulation.

5. The determination of an appropriate basis for
managing a multi-species fishery.

An elaboration of each of these policy issue areas is
provided in the following sections. In discussing the rele-
vant dimensions of each policy issue area, various
general approaches to addressing them will be noted for
clarification purposes only.

1.5.2.Appropriate Levels of Harvest Over an
Extended Planning Period

The need to address the issue of determining the most
appropriate or “optimal” levels of allowable harvest
from the demersal finfish fishery for a planning period
longer than one year is dictated by both the overall
objective adopted for management (Section 1.4), and the
renewable nature of the resource. The overall objective
calls for management of this fishery in a manner which
will generate over the period of the plan the greatest
possible joint economic and social net benefits from the
harvesting and utilization of the overall fishery resource.
With full recognition of the dynamics of the various
species components of the resource, it is clear that the
biological, social, and economic consequences of deter-
mining overall allowable levels of expected catch for the
current year extend into the future. As a result, it is the
sequence of expected catch levels over the plan period
which must be considered and evaluated with reference
to the achievement of management goals.

The selection of a management strategy for the Atlan-
tic demersal finfish fishery therefore includes the iden-
tification of the optimum (defined with reference to
achieving the overall objective) distribution of expected
harvests from the overall resource over the period of the
plan. Various criteria such as returns to capital and
labor, employment and spawning stock abundance are
useful as relative measures in evaluating the extent to
which various strategies will serve to achieve the overall
objective. In support of this evaluation process, an
analytical framework for assessing biological and
economic impacts (all of which have social implications)
is under development. This analytical framework will to
the greatest extent possible capture the full range of

costs and benefits, including those costs associated with
the implementation and control of the management
system.

Clearly other, less quantifiable considerations will im-
pact on the selection of an “optimal” strategy. These
considerations may typically be associated with percep-
tions of management and enforcement problems and will
need to be reconciled with the more conventional quan-
tifiable criteria indicated above for evaluating net
benefits. The relevant dimension of this policy issue,
then, is the extent to which various immediate concerns
for perceived problems arising from implementation of
the management system are to be traded off against net
benefits evaluated using quantifiable criteria. Moreover,
the issue raises concerns of how in the absence of quan-
tifiable criteria as a basis for management strategy selec-
tion, progress toward the achievement of management
objectives will be justified in light of the various
requirements of the National Standards and demands
from representatives of the industry and spokesmen for
the resource.

1.5.3 Appropriate Basis for the Distribution of
Benefits

Recent management experience has demonstrated
that in a situation where there is a need to restrict
harvesting of one or more species to a level which im-
poses a constraint on the harvesting sector, various dis-
tributional consequences will inevitably result. Much of
the management action in the groundfish fishery over
the past two years has reflected attempts to address con-
cerns for the inequitable distribution of catch among
harvesting sectors while attempting to minimize the
degree of management intervention.

In Section 1.4. the Council has expressed its concern
for the prevention of abrupt changes in the relative
shares of various fleet sectors as a consideration of the
objectives which it adopted for management of the
demersal finfish fishery. Under a management system
where some limitations are established for the expected
harvest of one or more species, the Council must
evaluate the effectiveness of alternative strategies in
achieving an equitable distribution of benefits among
fleet sectors

The relevant dimensions of this policy issue are con-
tained in the following specific considerations:

1. What is the basis for user-group or fleet sector iden-
tification? To what extent can or should factors such
as geographic locations, seasonal access, economic
profile, and technological development be con-
sidered in determining equitability?

2. How many discrete user-groups can feasibly be
recognized for allocation under the management
system?

3. What specific criteria should be used for deter-
mining each user-group’s equitable allocation
(current or past catch performance, size of group,
etc.)?




Table 2
Estimated Weights of Salt-Water Anglers’ Catches in 1960, 1965, 1970 and 1974

(In thousands of pounds)

Species Area 1960 1965 1970 1974
code! Northt, 25,190 28,978 35,688 25,194
South~ 5,710 928 230 5,606

Total 30,900 29,906 35,918 30,800
Haddock Northt , 1,690 21,390 2,528 NA
South -- -- = NA

Total 7,690 27,390 2,528 439
Pollock Northy , 21,680 9,348 5,584 700+
South -- -- -- NA

Total 21,680 9,348 5,584 7,094
Silver Hake Northt ; 1,810 4,193 659 NA
South~ 2,160 1,796 1,436 NA

Total 3,970 5,989 2,095 2,370
Summer Flounder North# , 3/ 19,128 11,611 19,639
South-~’ 3/ 10,485 7,742 15,261

Total 29,613 19,353 34,900
Winter Flounder Northt ; 3/ 21,838 24,684 15,804
South 3/ 6,935 12,881 3,080

Total 28,773 37,565 18,884
Red Hake Northt NA NA -- NA
Southl/ NA NA 904 NA

Total 699 1,398 904 421

Adapted from the 1965 & 1970 Salt Water Angling Surveys, Northeastern Regional
Survey of Recreational Fishing in Saltwater (1973-1974), and Preliminary
Management Plan: Hake Fisheries of the Northwestern Atlantic.

*North = New England and New York
J/ South = New Jersey to Cape Hatteras

2/ Includes Gadus morhua, the Atlantic cod, and Microgadus tomcod, Atlantic
tomcod. About 90% of catch is Atlantic cod.

3/ The 1960 SWAS did not breakdown the catch of flounder but rather included
both in one category: Flatfishes (order Pleuronectiformes, the soles, and
other flounders) North = 40,310,000 and South = 12,380,000.

NA = Not Available.

U.S, GOVERNMENT PRINTING OFFICE: 1981 — 700-696/323

1




0G,
ay

NATIONA:
aS

NOAA Technical Memorandum NMFS-F/NEC -2

This TM series is used for documentation and timely communication of

preliminary results, interim reports, or special purpose information; and

paOAMOSPrre, has not received complete formal review, editorial control, or detailed
vc. editing.

Northeast Fishery Management
Task Force

History and Status
of the
Atlantic Demersal Finfish
Fishery Management Plan

Guy D. Marchesseault, Richard P. Ruais,
and Der-Hsiung Wang

New England Fishery Management Council, Suntaug Bidg., 5 Broadway, Saugus, MA 01906

U.S. DEPARTMENT OF COMMERCE

Philip M. Klutznick, Secretary

National Oceanic and Atmospheric Administration
Richard A. Frank, Administrator

National Marine Fisheries Service
Terry L. Leitzell, Assistant Administrator for Fisheries

Northeast Fisheries Center
Woods Hole, Massachusetts

October 1980




4, To what extent should evolutionary trends be en-
couraged or traditional patterns of fishing be main-
tained?

It is clear that the policy issue of limiting the entry or
access of additional vessels to the fishery under regula-
tion (See Section 5.5.) has implications for the equitable
distribution of benefits. In the absence of controls on
access to the fishery, the number of participants may in-
crease overall as well as within a particular user-group or
fleet sector. If relative allocations to user-groups remain
unchanged over time, the relative expected shares of in-
dividuals within groups which have experienced entry
will necessarily be reduced.

1.5.4. Appropriate Means for Administering Catch or
Effort Allocations

Over the past two years a major concern for imple-
menting the management system for Atlantic Ground-
fish has been the means by which species catch quotas
would be administered. The concern has been influenced
by the pressure for exceeding the catch limitation, the
desire to restrict actual catches to the established level,
and the desire to encourage the harvesting of less
restricted or unrestricted species by avoiding, where
possible, a fishery closure.

Whether future management systems employ catch or
effort restrictions to limit the expected removals of a
given species to some desired level, various decisions of a
policy nature must be made by the Council relating to
the issue of administration. The following questions may
be relevant to this issue depending upon the nature of
the management system.

1. Is it economically desirable to impose restrictions on
the fleet that, by design, result in production (or
harvesting) being spread throughout the period?
Under a quota system should catch per unit of effort
be regulated during the period to keep the fishery
open?

2. Could desired limitations to species removals be
meaningfully achieved through the use of economic
incentives /disincentives?

3. Are the measures employed to control the removals
of various species consistent with existing fishing
practices? Will unnecessary discarding of one
species occur because the quotas for several species
typically caught together are independently deter-
mined?

Since Council decisions on the administration of the
management system not only affect the net earnings of
fishermen but also the total costs of management
(including enforcement costs), it is important that con-
siderable discussion be directed toward the kinds of
questions noted above.

1.5.5. The Limitation of Access or Entry to the
Fishery Under Regulation

The Council has determined that the issue of limited
entry shall be addressed in the development of all

Fishery Management Plans. Over two years of manage-
ment experience with groundfish, it has become clear
that the expansion of the fleet has had an impact on the
Council’s ability to effectively manage the fishery under
the existing management system. Moreover, further
expansion of the fleet can be expected to increase the dif-
ficulty of administering the management system and in-
hibit the achievement of the management objectives.

Associated with this policy issue are two areas of prin-
cipal concern.

1. The relationship between open access to the fishery
and both net benefits accruing to the users of the
fishery resources, and the management con-
siderations articulated by the Council (i.e. freedom
of decisionmaking, inducement of diversification,
minimization of management costs, etc.).

2. The specific form of access control, if any, that
should be considered for the Atlantic demersal fin-
fish fishery.

Clearly a policy decision with respect to limited access
will impact on the operational aspects of management as
well as the net income of the fleet over the plan period.
This policy area interfaces with the determination of ap-
propriate multiple year harvest strategies (Section 5.2.)
in that the criteria for evaluating impacts must an-
ticipate future levels of vessel participation. Hence these
two policy areas must be addressed simultaneously by
the Council. Discussion of the limited access issue must
further recognize that current participants in the fishery
may be unwilling to accept restrictions aimed at “op-
timal” utilization of the resource over time when there is
uncertainty with respect to their relative share of the
resource in the future.

1.5.6. Appropriate Basis for Managing a Multiple
Species Fishery

Management of the groundfish resource under the
FCMA has been characterized by single species quota
management with appropriate administrative measures
to achieve some degree of equitability among fleet sec-
tors. For the various species under regulation, quotas
were independently established based upon a com-
promise between biologically justified levels of
harvesting and the economic needs of the industry.
Quotas established in this manner were in some cases
found to be inconsistent and unrelated to the manner in
which relevant species were commercially harvested.
These inconsistencies made compliance with the
management system difficult and cumbersome and
resulted in industry misreporting and discarding.

As a result of this management experience, the need
for multi-species management become apparent. Two
generalized approaches to multi-species, fisheries
system management have been suggested. The first ap-
proach, known as the biomass approach, favors es-
tablishing an overall quota (or expected catch) from the
entire resource based upon the production available
from all species which may be encountered by the


PREFACE

This document is the result of studies originating within the North-
east Fishery Management Task Force. The Task Force, organized in 1979
by the New England and Mid-Atlantic Fishery Management Councils and
funded by the NMFS, seeks to promote discussion and dialogue on the
major issues of fishery management and to explore the effects of various
fishery management alternatives.

Composed of representatives from the fishing industry, Regional
Fishery Management Councils, federal and state agencies, academic in-
stitutions, and general public, the Task Force will operate in three phases.
The first phase will assemble background information for identifying and
analyzing management options. The second phase will examine this
background information to determine the data requirements, regulatory
measures, administrative procedures, and enforcement methods
associated with each management option. The third phase will critically
review the various options for application to specific fisheries, particularly
the Atlantic demersal finfish fishery.

This document is one of eight developed under Phase I operations,
all of which are being issued in the NOAA Technical Memorandum
NMFS-F/NEC series. This document and six others functionally serve as
appendixes to the eighth and leading document for Phase I operations—
“Overview Document of the Northeast Fishery Management Task Force,
Phase I.”

Jon A. Gibson, Coordinator
NOAA Technical Memorandum NMFS-F/NEC series


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NOAA Technical Memorandum NMFS-F/NEC -2

Northeast Fishery Management
Task Force

History and Status
of the
Atlantic Demersal Finfish
Fishery Management Plan

U.S. DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration
National Marine Fisheries Service

Northeast Fisheries Center

Woods Hole, Massachusetts

October 1980




TABLE OF CONTENTS

1.0 Overview ..... ccc ccc cece cece teen eee nee sec e nee e eee 1
2.0 Policy Areas in Support of Management Under the
Atlantic Demersal Finfish (ADF) FMP ...........0..0 cece eee 1
3.0 Progress to Date on Major Tasks in the Development of the
ADFFMP ........ ce cece eee eee eee eens
Annotated Bibliography ............. beeen ee eee n ence eae
Biological Descriptions of the Resource .....
Harvesting, Utilization, and Market Studies
Recreational Fisheries Study ...............ee00ee vee
Recreational Section of FMP ......... 00. c eee e cence eee eee eee
4.0 Multispecies Modeling Efforts ......... 0... cece cece e eee ene nee 3
Biological Modeling .........000cceeceeeeeeeeeteet eset eee eees 4
Economic Research ...
AppendixI Management Objectives for the Atlantic Demersal
Finfish FMP 00... ce cece cece eee teen eee eee e teens 4
Appendix II Major Policy Areas for Management of the Atlantic
Demersal Finfish Fishery (Abstracted from Draft Part I

Atlantic Demersal Finfish FMP) ...........0+ se eeeeee eee e eens 5

Figures 0.00.0 cece cece cece e teen eee e nent enn enees beeen 9
1. Time schedule for individual work tasks in support of groundfish

FMP development ....... see cece cere cere eeeeaes scene ence eeee 9

2. Progress report on Atlantic groundfish FMP development—
February 1, 1979

3. Seasonality classifications
by ports, 1970-1976... cece eee ee eee eens

4. Percentages of total annual catch, in major fishing areas, of various
groundfish species taken as “‘by-catch” by otter trawl and gillnet

(i.e.: species making up 50% or less of individual trip catch; 1978) ........ 12

5. Major components and general relations in a New England
groundfish industry model ..........++ beeen ee ee eee ee ee ee eee 13
Tables... 0... ccc ce eee eee ene e een enn ene 14

1. Summation of the four (4) highest monthly percentages of the species

landings for each major port area for the time periods 1970-1976

ANd 1978 Lo. cece eect ene eneee ry 14
2. Estimated weights of salt-water anglers’ catches in 1960, 1965, 1970

and 1974 (in thousands of pounds) .......++eeeeeeee beeen eee eeee 15




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14










species return) orientation of the fisheries for individual
species, by the species representation in the total lan-
dings from trips on which the species accounted for 50%
or less of the trip catch (by-catch trips).

The preliminary results of the analysis indicate that
for the majority of the demersal finfish fisheries (the
exceptions are redfish, whiting, and butterfish in the
otter trawl fisheries and pollock in the gillnet fisheries),
the by-catch proportion of total landings ranges between
40 and 80 percent (Figure 4). This study provides
evidence of the high degree of interaction within the
demersal finfish fisheries.

3.3.3. Processing Industry Structure

A statistical profile of the groundfish processing in-
dustry in New England and the Mid-Atlantic has been
developed and is in the final revision stage. These
statistics were computed from the NMFS processed
fishery products data file, and the study covers all of the
demersal finfish being considered for the FMP. Data
reported are: total demersal finfish output by regions
and product form; quantity and value from demersal fin-
fish by species and product form; prices for demersal fin-
fish by species and product form; market concentration
ratios for all demersal finfish by product groups; and the
number of plants processing demersal finfish by product
group.

3.3.4. Marketing and Consumption

The market structure and marketing channels must
be investigated to allow for the estimation of market
responses in terms of quantity and price for demersal fin-
fish species at various market levels. The staff has com-
pleted a search for existing market studies of demersal
finfish. As a result of the search, the staff has concluded
that additional market studies are needed as input into
the ADF FMP. It is noted that this effort will be com-
plementary to the economic modelling effort described
later in this paper.

3.4 Recreational Fisheries Study

A report describing the recreational fisheries for cod,
haddock, pollock and silver hake off the northeast coast
of the United States has been completed. The report
presents catch, effort, limited economic data, and other
descriptive data on four recreational user groups: party
boat fisheries; charter boat fisheries; private boat
fisheries; and shore-based fisheries. This report recog-
nizes the limitations of the current recreational data
base. Figure 5 is a summary of the most recent available
estimates of the recreational catches of demersal finfish.

3.5 Recreational Section of FMP

The descriptive section of the FMP concerning the
recreational demersal finfish industry, including the
most recent available catch and effort estimates, has
been completed. There are about 500 party fishing boats
and 1,100 charter boats operating in coastal waters from
Virginia through Maine. An unknown, but substantial,
number of these vessels fish for demersal finfish at some

time during the year. Of these, 1,600 commercial sport-
fishing vessels, 507 were licensed to fish for cod and had-
dock in March 1979. Approximately 92% of the 507
vessels are located from New York through Maine. The
1978 catch of licensed commercial sportfishing boats
from Virginia through Maine, as reported through the.
logbook system, was approximately 1101 metric tons of
cod and 279 metric tons of haddock. Vessels north and
east of Montauk, New York are likely to be heavily
dependent on cod, pollock, and haddock during some
portion of their operating seasons. The substantial
winter party boat fishery of the New York Bight is large-
ly supported by silver hake. About 90% of commercial
sportfishing for demersal finfish is conducted within 20
miles of shore. The division of catch between the
territorial seas of the coastal states and the FCZ is not
known.

Preliminary reports from the new National Survey,
currently in progress, are being reviewed and the rele-
vant information will be integrated as it becomes
available.

4.0 Multispecies Modelling Efforts

The groundfish management objectives adopted in
July, 1978 and the revised objectives for an Atlantic
Demersal Finfish FMP (June, 1979) both imply the need
for a multispecies model which provides the capability to
determine an ‘optimum’ time path of harvest levels in
the multi-species New England demersal finfish fishery
over a multiple year planning period. Various forms of
species interdependence in this generalized fishery result
from biological/resource and market/industry
characteristics:

1. Biological links e.g. predator-prey relations and
stock recruitment relationships between species;

2. Joint production relationships (by-catch) in the
harvesting sector.

3. Substitutability among species in the fishermen’s
selection of harvesting strategies, and expected
catch mix (i.e. market price and costs of catching,
species i relative to species j may affect fishermen’s
allocation of effort.);

4. Substitutions among species in the market place
(i.e. the price of species i is dependent on the
price /landings of species j).

In early May 1978 the staff began to organize efforts to
develop formal models of the groundfish fisheries to im-
prove the capability of evaluating the economic and
biological consequences of alternative management
strategies. It was recognized that these models should be
predictive over a multiple year planning period and be
capable of dealing with the uncertainty associated with
biological and economic parameters. Figure 6 is an over-
view of the major components and general relations in a
New England groundfish industry model. Two general
research efforts support the formulation of a
bioeconomic mathematical programming model and
they are proceeding simultaneously.


(b) Over the plan period expected total removals will
be established on a yearly basis consistent with
the overall objective as constrained by a
minimum spawning stock level for each species
which the Council determines will ensure an
acceptable probability of continued recruitment.

(c) Management’s ultimate aim is to generate the
greatest possible social and economic values to
the users of the resource. In determining the op-
timum annual levels of exploitation of individual
fish stocks (optimum in the sense that they best
satisfy the overall objective), the Council would
implicitly determine the biomass size of the
stocks at given points in time.

(d) Benefits to users include incomes to harvesters
and processors as well as the values to con-
sumers. Furthermore, it is recognized that
benefits include the values associated with the
size of the fish stocks at the end of the planning
period. Costs to users involve harvesting and
processing costs, as well as management and en-
forcement costs (see 2d, 2e). Social costs and
benefits are implied in the considerations listed
under 2a, b, ande.

(e) A multiple year planning period is required so as
to make a determination within the framework of
the plan of how alternative harvesting levels in
the immediate future affect the options available
for later years.

(f) Due to the biological and economic interactions
between species, it is unlikely that the economic
and social values derived from individual fish
stocks can be maximized simultaneously. The
particular considerations of annual species/area
TACs to be chosen depends on the relative prices
and costs as well as on the by-catch and discard
considerations. In view thereof, it appears
desirable to apply to the greatest possible extent a
multiple species approach to management.

2. Sub-objectives /considerations were:

(a) Prevention of abrupt changes in the relative
shares of domestic user-groups in the
resources. The management measures im-
plemented in the groundfish fishery in 1978
reflect the Council’s desire to avoid economically
or socially disruptive changes in the traditional
relative shares of various vessel-gear groups in
the fisheries for regulated species. Concerns were
expressed by regional /geographic user-groups for
maintaining their “fair” shares of the harvests of
individual species. The concept of “fair” shares
shall be reassessed periodically.

(b) Freedom of decision-making and choice for in-
dividual participants in the fishery should be
maintained to the greatest possible extent.
Concerns were voiced regarding excessive en-
croachment by government interference and

management regulations on the individual
freedom of fishermen to choose and plan
harvesting operations.

(c) Inducement of diversification in the ground-
fish fishery towards increased utilization of
species other than cod, haddock and yellow-
tail. There appeared to be universal agreement
that management of the groundfish fishery
should attempt to induce effort away from the
over-fished species. It is necessary to evaluate the
impacts of alternative strategies with respect to
this criterion.

(d) Minimization of management regulations,
subject to attainment of the overall objective.

(e) Minimization of enforcement costs, subject to
attainment of the overall objective.

(f) Provision of accurate and consistent economic,
social and biological data required to monitor
effectively and assess the performance of the
fishery relative to the overall objective. A
major consideration for implementation and
monitoring of any management plan would be the
provision of reliable data concerning the state and
performance of biological, economic and social
resources engaged. Furthermore, it is important
that consistency of biological and economic data
is maintained over time so as to enable good
assessments of performance of resources.

APPENDIX II

MAJOR POLICY AREAS FOR
MANAGEMENT OF THE ATLANTIC
DEMERSAL FINFISH FISHERY

(Abstracted from Part 1, Section 1.5, Draft ADF FMP)

1.5.1 Introduction

In the process of developing a management plan for
the demersal finfish species off the northeast coast of the
United States, various strategies, comprised of com-
binations of management measures, must be evaluated
relative to the goals and objectives adopted to guide
management decision-making. Although quantitative
impacts relative to various biological, economic, and
social criteria may serve as a useful basis to assist the
Council(s) in discriminating among available manage-
ment strategies, all of the Council’s decisions are rooted
in fundamental determinations of policy.

It is the purpose of this section to identify the major
areas where policy decisions must be made at the Coun-
cil level in order to effectively address management of
the Atlantic Demersal Finfish fishery. The bases for the
determination of these policy issues are 1) the manage-
ment objectives which have been adopted for this
fishery, 2) the current status and structure of the specific
fishery resources and the fishing industry relative to
historical values, and 3) past management experience for
this fishery. Accordingly, it is apparent that at least five
generalized policy issue areas need to be considered in


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Portions of this document are not fully legible due to the historical

nature of some of the material. However, it is the best reproduction
available from the original submission.




NOAA TECHNICAL MEMORANDUM NMFS-F/NEC

The Northeast Fisheries Center (NEFC) is the research arm of
the National Marine Fisheries Service (NMFS) in the northeastern
quadrant of the country. The NEFC operates research laboratories
in Gloucester and Woods Hole, Massachusetts; Narragansett, Rhode
Island; Milford, Connecticut; Sandy Hook, New Jersey; and Oxford,
Maryland. It also administers the NMFS's National Systematics
Laboratory in Washington, D.C., and Atlantic Environmental Group in
Narragansett, Rhode Island. Research focuses on: (1) harvesting,
aquaculture, and utilization of fisheries resources; and (2) the
health of the marine environment and its effects upon fisheries
resources. Users of the information and advice emanating from this
research include federal and state governmental institutions,
private industry, and the general public.

The real-time needs for this information and advice by decision
makers often preclude publication in the formal scientific and
technical media. The WOAA Technical Memorandum NMFS-F/NEC series
identifies informal scientific and technical documents prepared by
NEFC authors or similar material prepared by others for NEFC
purposes, where formal review and editorial processing are not
appropriate or feasible. However, documents within this series
reflect sound professional work and can be referenced in the formal
scientific and technical media. This series replaces all previous
series that were used for similar kinds of scientific and technical
documents within the NEFC.

Copies of this and other NOAA Technical Memorandums are
available from the National Technical Information Service, 5285
Port Royal Rd., Springfield, VA 22161. Paper copies vary in price.
Microfiche copies cost $3.50. Recent issues of NOAA Technical
Memorandun NMFS-F/NEC are noted below.

1. Overview Document of the Northeast Fishery Management Task Force,
Phase I. By Richard C. Hennemuth, Brian J. Rothschild, Lee G. Anderson,
and William A. Lund, dr. October 1980. vi + 12 p., 2 figs.




INTERNATIONAL TRADE

CONSUMER PRICE CONSUMER BENEFITS
RELATION FROM A
INVENTORIES
ProcessTng ECONOMIC RETURNS TO RECREATIONAL
Marketing FISHERMEN FROM A CATCH OF A
H
A

EX-VESSEL PRICE
RELATION A, B, C

COMMERCIAL
CATCH FROM A

STOCK ABUNDANCE

A} frecruitHenT A

CPUE IN
FISHERY A

SEASONAL & GEOGR
AVAILABILITY OF

COSTS OF INPUTS

APH,
A

STOCK ABUNDANCE

RECRUITMENT B

CPUE IN
FISHERY B

INPUTS USED

“*-(Caten B]

AVAILABILITY OF

SEASONAL & GEOGRAPH!

STOCK ABUNDANCE

[RECRUITMENT C.

c

‘ CPUE IN
FISHERY C

“featen c]

SEASONAL & GEOG!
AVAILABILITY OF

RAPH.
c

fect

FISHING EFFORT] 4 {FISHING EFFORT{ 4 | FISHING EFFORT! ¢
ALLOCATED TO A ALLOCATED TO B ALLOCATED TO C

CAPACITY OF
CURRENT FLEET SIZE

“sf i i

i

preseees.

[EXPECTED ECONOMIC RETURNS FROM A, B AND C]

INVESTMENT DEC! fons
( ENTRY

Direct Relationships

crocr----- Lagged Relationships

Figure 5. Major components and general relations in a New England groundfish industry

model.

13



HISTORY AND STATUS OF THE
ATLANTIC DEMERSAL FINFISH FMP

1.0 Overview

The New England Fishery Management Council
began work on the preparation of a new comprehensive
Atlantic Groundfish FMP in May, 1978. In October the
Secretary of Commerce agreed to begin a new fishing
year with the understanding that a comprehensive plan
would be ready for the following fishing year. A time
schedule for plan development was prepared (Figure 1)
and a tentative May 1, 1979 completion date was set for
the draft FMP.

Between October 1978 and early spring, 1979 the staff
made considerable progress (Figure 2) on the plan. But
events, including a decision by the Groundfish Oversight
Committee to broaden the management unit and the
evolution of a NOAA/NMFS Task Force on Multi-
Species Management, have necessitated a re-evaluation
of the completion date. Along with the decision to
broaden the management unit on May 4, 1979, the
Groundfish Oversight Committee agreed to change the
name of the plan to the Atlantic Demersal Finfish FMP.
On June 27, 1979 the New England Council formally and
unanimously adopted Part I of the Atlantic Demersal
Finfish FMP, which includes a definition of the relevant
management unit and appropriate management objec-
tives for the species under regulation. As such, “Part I:
Statement of the Problem for the Atlantic Demersal Fin-
fish Fishery FMP” provides a basis for including within
the management unit the following species: cod, had-
dock, yellowtail flounder, fluke, all other flounders,
silver hake (whiting), red and white hakes, pollock, red-
fish, butterfish, and scup. This combined resource com-
plex forms the major source of incomes and benefits to
the New England and Mid-Atlantic otter trawl and fixed
gear fleets as well as to recreational user-groups. The
objectives adopted by the Council for the management
of these species are appended to this document (Appen-
dix 1).

It is recognized that it is unlikely that this FMP will
initially provide for regulations for all the species noted
above. Individual FMPs, in various stages of completion,
are being prepared by either the New England Fishery
Management Council, the Mid-Atlantic Fishery
Management Council, or the National Marine Fisheries
Service for eight of the eleven species noted. However,
the existence of extensive biological and economic
species interdependencies in the New England and Mid-

Atlantic demersal finfish fisheries creates the need for
the simultaneous determination of the management
regulations for these species. It is recognized that ‘the
most effective means of achieving such simultaneity is
through the preparation of a multiple species manage-
ment plan. Therefore, it is intended that management
measures and regulations will ultimately be developed
for those species for which the New England Council has
legal authority, and for those species over which the
Mid-Atlantic Council has authority, if the Mid-Atlantic
Council concurs in the need for appropriate regulations.
These management measures and regulations will also
be sensitive to the impact on fisheries for species other
than those included in the ADF FMP.

2.0 Policy Areas in Support of Management Under
the Atlantic Demersal Finfish Fishery (ADF) FMP.

Section 1.5 of the draft FMP relating to Major Policy
Areas for Management of the Atlantic Demersal Finfish
Fishery is being reviewed by the Council in conjunction
with the objectives as a basis for the identification and
evaluation of management strategies. This section iden-
tifies the major areas where policy decisions must be
made by the Council in order to effectively address
management of the demersal finfish fisheries in relation
to the adopted management objectives. The Oversight
Committee has accepted the document and stated that
the document is intended to be a guide to the (policy)
decisions which the Council has to make as the Demersal
Finfish FMP evolves.

The bases for the identification of these policy issues
are 1) the management objectives which have been
adopted for this fishery, 2) the current status and struc-
ture of the specific fishery resources and the fishing in-
dustry relative to historical values, and 3) past manage-
ment experience in this fishery. The policy questions are
listed below.

1. The determination of appropriate annual levels of
harvest by species in the demersal finfish fishery
over some extended planning period.

2. The determination of an appropriate basis for the
distribution of benefits arising from harvests among
the various sectors of the industry over the fishing
year.


The status of these efforts is summarized below.

4.1 Biological Modelling

Progress on the development of biological models to
describe the population dynamics of several key ground-
fish species over a 5 year time period has been substan-
tial. The models are designed to interface with similar
efforts on the economic side. They are not intended to
give precise predictions of stock dynamics, but to il-
lustrate the consequences of management options over a
multiple year planning period.

The models emphasize the role of individual biological
factors in stock changes, rather than net results, which
allows for a better understanding of events that occur in
a population, but why they occur. Through the use of
these models, management should be capable of ad-
dressing options such as stock rebuilding or maintaining
recruitment. Through the inclusion of a stochastic factor
reflecting the variability in post stock behavior, it
becomes possible to assess ‘the chances of achieving a
stock size goal at the end of the planning period.

Two biological models have been developed, which
provide a basis for: 1) evaluating the impacts of
harvesting strategies on future stock dynamics; and 2)
evaluating biological constraints for use in the economic
modeling. Although these models have to date been
applied to only one of the major groundfish species,
progress on other species is underway. It is anticipated
that modeling efforts will initially focus only on the key
species requiring regulation, but they may be expanded
to other species, where feasible, as the number of species
under regulation increases.

4.2 Economic Research

Two general areas of economic research are being pur-
sued: demand for and supply of demersal finfish. The
importance of this research is evident, in that demand
and supply determine the market equilibrium prices and
quantities, and thereby the gross and net revenues
within all sectors. This information is essential to the es-
timation of a profit maximization strategy for an in-
dustry which represents the expected response to supply
and demand.

4.2.1, Demand Research

Due to the nature of substitutability and complemen-
tarity among demersal finfish species, demand for one
species at the retail level and the derived demand for
that species at subsequent market levels depends not
only upon the price of that species, but also the price of
related species, among other factors. The existence of
this interrelationship provides the rationale for Ithe
development of multispecies models in demand
research. Studies of this kind are limited in existence,
and have thus been undertaken by the staff. Demand
models for several of the demersal finfish ex-vessel
markets have been completed. However, demand
research for the other market levels must still be in-
itiated. It is expected that these studies can be com-
pleted within one man-month after they are begun.

4.2.2. Supply Research

Supply behavior, in terms of species interrelationships
depends on the nature of the production processes in
both fish processing and harvesting sectors. For the
processing sector, it may be observed that a plant with
fixed facilities produces a number of products from
various demersal finfish species. This fact is a basis for
considering multispecies supply behavior at in-
termediate levels. For the harvesting sector, it is found
that trip landings are composed of mixed species in the
New England demersal finfish fisheries. The nature of
species substitutability and complementarity in the
processing sector and of by-catch in the harvesting sector
must be investigated. Finally, the supply models reflec-
ting these factors will be estimated and used as inputs to
the bioeconomic mathematical programming model.

Our preliminary studies show that the joint catch and
supply behavior for various demersal finfish species is
affected by the relative abundance of fish stocks and by
other economic variables. These findings suggest that in-
teractions among species and between biological and
economic factors exist in these fisheries. Moreover, these
interactions are key factors in the determination of profit
maximization in the demersal fishing industry within
the bioeconomic mathematical programming model.
Further investigation is called for to assure the validity
of the relationships among species as well as the
relationships between biological and economic factors.
Moreover, further study of market supply factors is
required so that they can be explicitly considered in a
multispecies /multi-year fishery management scheme.

APPENDIX I

MANAGEMENT OBJECTIVES
FOR THE ATLANTIC DEMERSAL
FINFISH FMP

1. Recognizing that management of demersal finfish
impacts on benefits and costs in the utilization of
other species, the overall objective of the plan shall
be to manage the demersal finfish fishery in a
manner which will generate over the period of the
plan the greatest possible joint economic and social
net benefits from the harvesting and utilization of
the overall fishery resource.

The overall objective implies the following:

(a) The management unit for this plan shall consist
of cod, haddock, and yellowtail flounder as well
as other species in the commercial and
recreational fisheries for demersal finfish that the
Council, in deliberation with other Councils in-
volved, considers necessary or desirable to bring
under regulation of this plan. In designing and
implementing the plan the Council shall consider
the impact of the plan on species not regulated
by the plan.