Presentation Socioeconomic Value of Shellfish in Oregon
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1 Presentatin Sciecnmic Value f Shellfish in Oregn presented by: Dr. Gil Sylvia, Directr - Castal Oregn Marine Experiment Statin Shannn Davis, Principal - The Research grup Jint Interim Task Frce n Oregn Shellfish Salem, Oregn July 21,
2 Presentatin Outline 1. What are scial and ecnmic values? 2. Shellfish aquaculture industry activities and cmmercial value. 3. Recreatinal shellfish harvesting value. 4. Csts and revenues fr managing shellfish aquaculture 5. Csts and revenues fr managing cmmercial/recreatinal shellfish resurces. 6. Ecsystem services related shellfish resurces. 7. Recmmendatins fr ecnmic analysis. 2
3 Types f Ecnmic Values Direct Use Values Cst Benefit Analysis Market and Nn Market Csts and Benefits Ecnmic Impact Analysis Indirect Use Values Ecsystem Services Nn Use Values Optin Values Bequest Values Existence Values
4 Methds fr Ecnmic Analysis Cst effectiveness analysis. Reginal ecnmic impact analysis. Benefit-cst analysis. Ecsystem valuatin analysis. 4
5 Ecnmics f Oregn s Cmmercial Aquaculture 5
6 Shellfish Aquaculture Industry Activity, Cmmercial Value, and Ecnmic Issues Data ODA Shellfish Plat Prductin Annual Reprt ,837 acres leased frm the state $56 thusand lease fees cllected, $1.8 millin farm gate value. USDA Census f Aquaculture released in Fall 2014 fr data year farms 3,539 acres 15 farms leased 2,934 acres. $10.6 millin farm gate value. 6
7 Shellfish Aquaculture Industry Activity, Cmmercial Value, and Ecnmic Issues (Cnt.) Ecnmic Cntributin Ecnmic Impact Estimates by the Research Grup fr ODF&W $10 millin in 2014 using persnal incme (includes the multiplier effect). This cmpares t the salmn fishery ecnmic cntributins f $12.8 millin in 2010 and 31.9 millin in Methdlgical issues include: Determining annual labr, M&S, and investment csts fr the farms. Need infrmatin n extent f business peratins D farms als prcess r distribute? Are there ther revenue surces Types f prducts and markets? What are the dwnstream markets fr prducts? 7
8 Washingtn Pacific Oyster Aquaculture Vlume and Price in 2006 t Punds Price Punds (millins) Price Ntes: 1. Price is expressed in 2015 dllars. Dllar adjustment used the GDP implicit price deflatr develped by the U.S. Bureau f Ecnmic Analysis. 2. Vlume is in rund punds, and prices are per rund pund. 3. Year 2013 vlume is nt shwn due t an unreslved data issue. 8
9 Oregn Selected Species Capture Vlume and Price in 2006 t Razr clam punds Gaper clam punds Basket cckle price Basket cckle punds Razr clam price Gaper clam price Punds (thusands) Price Ntes: 1. Price is expressed in 2015 dllars. Dllar adjustment used the GDP implicit price deflatr develped by the U.S. Bureau f Ecnmic Analysis. 2. Vlume is in rund punds, and prices are per rund pund. 3. The tp three mllusk species landed in Oregn are shwn in the graph. The next tw highest landed species in 2015 are butter clams (31 thusand punds) and ctpus (11 thusand punds). 9
10 Recreatinal Harvesting Values 10
11 Recreatinal Harvesting Values Data Accrding t Dean Runyan Assciates (May 2009) in 2008 there were : 175 thusand shellfish (crabs and clams) harvesting participants. Of the shellfish harvesters, 24 percent f Oregn residents and 16 percent f nn-residents harvested mllusks (razr clams, bay clams, mussels) r ther nn-crab species. Shellfish harvesters made 471 thusand trips and spent $38 millin ($31 millin in travel related expenditures and $5 millin in lcal recreatin expenditures). The spending f participants des nt include equipment and ther fixed expense items which can annually equal trip related expenditures. The travel/lcal spending was distributed 43/38 percent Nrth Cast, 39/32 percent Central Cast, and 18/30 percent Suth Cast. A slight majrity f participants said shellfish harvesting was the primary trip purpse, but fr nn-residents nly 29 percent said shellfishing was the primary trip purpse. This cmpares t trips when saltwater angling ccurs when 83 percent f Oregn residents and 75 percent f nn-residents said fishing was the primary purpse. 11
12 Recreatinal Harvesting Values (Cntinued) Data The ODFW shellfish prgram cnducts recreatinal effrt and catch per unit effrt surveys fr bay crab (effrt is pt-hurs) and clams (effrt is diggers). Estuaries surveyed are Tillamk, Netarts, Yaquina, Alsea (crab nly), Winchester (crab nly), and Cs. Clatsp cunty beaches (where razr clams are primarily harvested) and the Clumbia River estuary is als surveyed. Results are peridically published (such as Ainswrth et. al. (2014)) shwing catch and effrt in 2008 t 2012 fr nn-clumbia River estuaries. Tillamk and Netarts clam digging effrt was increasing twards the end f the reprted perid Other estuaries generally had a dwn trend. Overall effrt has declined statewide since the 1970 s. Since Oregn s participatin is getting clse t dubling since the 1970 s, the percentage f Oregnians wh participate in clamming is clearly declining. 12
13 Annual Number f Clam Digging Trips Cmpared t Estimates frm the 1971 Resurce Use Study Surce: Ainswrth et al. (2014). 13
14 Agency Csts Agency budgets are a critical ntewrthy cnsideratin when cmpiling benefit and cst estimates fr maintaining the cnservatin f shellfish resurces. Budget infrmatin was requested frm ODA, ODFW, and ther state agencies t demnstrate the csts. ODFW (Rumrill 2016) prvided the fllwing infrmatin: The ODFW Shellfish Prgram has jint csts fr managing mllusks, as well as P. shrimp, sea urchins, and D. crab in estuaries. Ttal csts are abut $780K per year Labr is abut $570K annually: 60% recreatinal shellfish license, 35% cmmercial fees, 5% ther. M&S is abut $212K annually 30% recreatinal shellfish license 70% cmmercial fees. 14
15 Agency Csts (cntinued) The recreatinal shellfish license prgram generates abut $750K annually 50% ges t ODFW 20% ODA, 30% OSP. Cmmercial fees related t shellfish are abut $25 thusand fr permits and licenses and $32 thusand ad valrem tax n landings nt including P. shrimp. An example financial analysis shwed: Razr clams fr cmmercial harvesting raised $.07 per clam Recreatinal harvesting raised $.09 per clam. 15
16 Shellfish Research: Investment Csts and Benefits Shellfish Research imprtant as a lng term investment by the state f Oregn OSU shellfish related research has been in existence fr almst 50 years. Srte (2010) describes and estimates the ecnmic cntributins frm yster research. replenishing yster brdstck and imprving genetics; identifying and managing ecsystem issues and key predatrs; imprving water quality; and, predictin and cnsumer prtectin against harmful effects frm algal blms, bacteria, and ther human health prblems. 16
17 Shellfish Research: Investment Csts and Benefits Using the Srte (2010) study results and ther dcuments shws a summary annual research funding estimate is abut $2 millin. The OSU Marine Experiment Statin budget fr shellfish is abut $900,000 annually: $166,000 supplemental funding prvided by the Oregn Legislature fr MBP. Smaller amunts by industry The wrk is split between the HMSC and the OSU Seafd Labratry in Astria. Abut 60% f the $900,000 is frm federal grant surces. Anther $83,000 annually supplied by the legislature t OSU t supprt OA mnitring Other OSU faculty and ther institutins such as Suth Slugh Natinal Estuarine Research Reserve in Charlestn als participate in research. Agriculture Research Service Prgram at HMSC cntributes up t $500K annually Eclgical Research Genetic Research (psitin is presently vacant) ODF&W supply additinal research and mnitring f abut $300K annually 17
18 Ecsystem Services Valuatin There is limited data available n the value f ecsystem services prvided by aquaculture Many services are frequently nt cnsidered when assessing value r cntributin. Nn-market benefits include such eclgical services as: cleansing (ysters water-filtering can be 50 t 60 gallns f water per day), nutrient cycling, establishing habitats fr ther species, stabilizatin f submerged lands by trapping sediments, symblic f castal heritage. Nn-market benefits accrue t vicarius cnsumers f bay resurces and include the benefit f: knwing f the existence f these resurces, the value assciated with bequesting recreatinal pprtunities and amenity services t future generatins, the altruistic value f preserving recreatin resurces and amenity gds fr ther users, and the value assciated with beliefs that maintaining r enhancing bay resurces is intrinsically desirable. but staking, deplying, and harvesting may als be cnsidered visual pllutin by sme residents the intrductin f nnnative Pacific yster cnfunds this measurement whether r nt there is adverse cmpetitin with the native Olympia ysters. 18
19 Ecnmic Prject Recmmendatins Aquaculture Shellfish: As recmmended in HB 2209 get detailed annual prductin and revenue data every year frm all grwers. Emply apprpriate methds and (dis)incentives s the data is accurate and timely In year ne cnduct a baseline ecnmic survey including perating and investment csts as well as facility, prductin detail, and sales data. Update surveys every fur years. Use cllected data t develp a detailed ecnmic impact mdel. Issue a biennial reprt t ODF&W and the legislature t shw the ecnmic prfile f the industry including direct and indirect reginal benefits. Cnduct an aquaculture prductin and marketing study t determine: pprtunities and barriers t distinguish Oregn s Pacific yster in the marketplace and stimulate prices. describe ptentials fr ther shellfish prduct uses (fertilizer and building materials, jewelry, etc.). Investigate rganizatinal appraches such as using a cmmdity cmmissin. research ttal estuarine prductin pssibilities and utline business supprt prgrams t attain increased prductin. evaluate ptential impacts f climate change and risk averse, resilience strategies. Such a study shuld prve useful at state and federal funding levels fr planning purpses. Describe the risk t the ecsystem and ecnmy if the industry retracts. 19
20 Prject Recmmendatins (cntinued) Recreatinal Shellfish: Cnduct a preference survey as well as develp an ecnmic impact mdel t determine the needs, values, demgraphics, and behavir f recreatinal harvesters as well as their ecnmic impact n the Oregn cast by regin and time perid. Use the survey and impact mdels t prvide a biennial reprt t ODF&W and the legislature. Update the survey every five years Cmmercial Shellfish: Cnduct a marketing and prductin study t determine: pprtunities fr expanding prductin increasing marketing pprtunities and sales prices including pprtunities fr human cnsumptin. Ecsystem Services: Cnduct an ecsystem services valuatin reprt fr all shellfish fr stakehlder educatin and public awareness. 20
21 Literature Used fr Presentatin Ainswrth, Justin C., Anthny F. D Andrea, Mitch Vance, Sctt D. Grth, Elizabeth A. Pertti. Status f Oregn Bay Clam Fisheries, Stck Assessment, and Research. Oregn Department f Fish and Wildlife Fish Divisin Infrmatin Reprt N December Cmmittee n Nnnative Oysters in the Chesapeake Bay. Nnnative Oysters in the Chesapeake Bay, Chapter 5: Scial and Ecnmic Value f Oysters in the Chesapeake Bay. Prepared fr the Natinal Academy f Sciences. Accessed July 18, Published Dean Runyan Assciates. Fishing, Hunting, Wildlife Viewing, and Shellfishing in Oregn: 2008 State and Cunty Expenditure Estimates Endreny, Plly A. and Gil Sylvia. Mapping a Path t Sustainable Utilizatin f Bay Clam Resurces in Oregn s 21st Century Estuaries: An Investigatin int the Ptential f Oregn s Cmmercial Bay Clam Fishery. Reprt t the Oregn Department f Fish and Wildlife and the Oregn Cmmercial Bay Clam Industry. March Mehl, Jhn. Develping Additinal Investment in Aqua Farming in Oregn: A Radmap fr Sustainable Develpment. Prepared fr the Oregn Department f Agriculture. March Nrthern Ecnmics. The Ecnmic Impacts f Shellfish Aquaculture in Washingtn, Oregn and Califrnia. Bellingham, WA Nrthern Ecnmics. Valuatin f Ecsystem Services frm Shellfish Restratin, Enhancement and Management: A Review f the Literature. Prepared fr the Pacific Shellfish Institute. September Oregn Department f Agriculture (ODA). Shellfish Plat Prductin Annual Reprt in March 29, Srte, Bruce. The yster industry in Oregn: Its challenges and its ptential, A summary verview. Oregn Agricultural Experiment Statin, Oregn State University. July Steve Rumrill, ODFW Shellfish Prgram Leader. Persnal Cmmunicatin. July 18, The Research Grup, LLC (TRG) with assistance frm the Castal Oregn Marine Experiment Statin. Oregn Cmmercial Fishing Industry in 2015, Briefing Reprt. Prepared fr Oregn Department f Fish and Wildlife. March 2016 United States Department f Agriculture (USDA), Natinal Agricultural Statistics Service (NASS). Census f Aquaculture (2013). Vlume 3, Special Studies, Part 2 AC-12-SS-2. September Oregn Department f Agriculture, Market Access and Certificatin Prgram. Users Guide: A Snapsht f the Prcesses t Fllw t Start an Aqua Farming Business in Oregn. March Mississippi-Alabama Sea Grant Legal Prgram. Inventry f Shellfish Restratin Permitting and Prgrams in the Castal States. Oregn Page 139. Prepared fr The Nature Cnservancy. December
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