Stephanie Stefanski PhD Student, University Program in Environmental Policy Nicholas School of the Environment Duke University

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1 Stephanie Stefanski PhD Student, University Program in Environmental Policy Nicholas School of the Environment Duke University NAAFE Forum 2017, La Paz, Baja California Sur, Mexico

2 Context: Fisheries in Argentina High volume & high-valued seafood product exports to developed countries Unique oceanography that supports high biodiversity & high volume fisheries ITQ Management regime designed to achieve both social & economic objectives Four commercially important fisheries managed by ITQs since % of total fisheries export value 2015 EXPORTS Tons HAKE HOKI SOUTHERN BLUE WHITING PATAGONIAN TOOTHFISH (Chilean Sea Bass) 99,600 14,000 4,000 2,600 Per unit value (USD) 2,464 2,116 2,850 19,565 Revenue (USD Million) Source: Subsecretaria de Pesca y Acuicultura, 2015

3 Species Country Export Value per ton (USD) Chilean Seabass Argentina 19,565 Argentine red shrimp Argentina 6,320 Cod United States 2,936 Southern blue whiting Argentina 2,850 Hake (Fillets & Steaks) United States 2,845 Argentine Hake Argentina 2,464 Surimi United States 2,363 Pollock United States 2,155 Argentine Hoki Argentina 2,116 Hake, Whiting (Fresh & Frozen) United States 1,623 Sources: Subsecretaria de Pesca y Acuicultura, 2015; NOAA Fisheries, 2015 Photo source: Oceana, MSC, PacificHarvestSeafoods

4 Six Principal Ports Buenos Aires Mar del Plata Rio Negro Pto. Madryn & Rawson Chubut Comodoro Rivadavia Santa Cruz Pto. Deseado Port Population Illiteracy Rate (%) Mar del Plata 618, Puerto Madryn 82, Rawson 131, Comodoro Rivadavia 186, Puerto Deseado 107, Ushuaia 56, Tierra del Fuego Ushuaia Source: INDEC Census 2010

5 Argentina: Fisheries Legislative Framework 1998: Federal Fisheries Act Article 27 of Federal Fisheries Act: The following factors should inform the allocation: Domestic manual labor employment Domestic investment Historic landings of each species Historic production of fishery products, onboard or on land Sanctions for violations of fishery laws The transfer of quotas from ice trawler vessels (fresqueros) to freezer or factory processor trawler vessels will not be permitted. 2010: Implementation ITQ Management Regime

6 ALLOCATION RULES HAKE HOKI SOUTHERN BLUE WHITING PATAGONIAN TOOTHFISH Min. % of Historical Landings Allocated Quota (% of TAC) Concentration Limit (% of TAC) INITIAL QUOTA ALLOCATION WEIGHTS (%) Historical Landings Labor Employed Production Investment Infraction Penalty QUOTA RESERVES AND FUNDS Reallocation Fund Y 57 Y Y Administrative Reserve Conservation Reserve Artisanal Reserve 2.76 N N N Social Reserve N N N

7 Working Rules of the ITQ Program 15-year concession Fixed percentage of TAC Baseline period: ; 1999 Social Reserve: Provinces can allocate additional hake quota to support local economic development Artisanal Reserve: Shared quota for artisanal hake fishing vessels

8 Working Rules: Transfers & Operations Permanent and temporary transfers: Quota price negotiated between recipient and seller Incur transfer fees paid to government Temporary transfer fee calculated per ton Permanent transfer fee calculated per ton multiplied by duration of permit Unidirectional trading restriction: Coastal fleet can buy from but not sell to offshore processing fleet Use-it-or-lose-it : Vessels lose quota for insufficient use Biological Halt: Coastal vessels must stay in port for 50 days, which can be divided up to 5 periods (min. 10 days) Offshore vessels must stay in port for 75 days, which can be divided up to 5 periods (min. 15 days)

9 Fleet Composition: Fishing Vessels Attribute Offshore Fleet (Arrastreros) Coastal Ice Trawler Fleet (Fresqueros) Vessel type Double-beam & factory trawler Surimi Long-line Rada o ria (yellow fleet) Costeros (coastal) Fresqueros (ice trawler) Average Length 42-70m 25-63m Average Trip Length days 4-15 days Storage Freezer hold On ice storage Processing Onboard Onshore Source: Estremar.com (left), NuestroMar.org (right)

10 Evaluating Outcomes How do configurations of rights-based management influence ecological, social, and economic outcomes? Economic efficiency Social equity Fleet composition Fishery communities/ Landing locations Ecological sustainability Source: Stephanie Stefanski (top); Histarmar.com.ar (middle); El Mortero Chubut (bottom)

11 100% Annual Hake Landings by Vessel Type 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Rada o Ria Coastal Ice Trawler Trawler Longliner Shrimp Trawler Surimi Source: Annual Landings. Ministerio de Agricultura, Ganaderia y Pesca, <

12 Number of Vessels with Hake Quota Over Time by Fleet Type Vessels (n) Ice trawler Factory Processor Rada o Ria Freezer Processor Coastal Source: Consejo Federal Pesquero, Annual ITQ Reports *DO NOT CITE

13 Southern Hake Landings by Port 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Mar del Plata Puerto Madryn Rawson Comodoro Rivadavia Puerto Deseado Ushuaia Source: Annual Landings. Ministerio de Agricultura, Ganaderia y Pesca, <

14 Buenos Aires Province Rio Negro Province Quota Allocation (tons) 0 5,000 10,000 15,000 20, Quota Allocation (tons) Quota Allocation (tons) 0 5,000 10,000 15,000 Chubut Province Quota Allocation (tons) 0 1,000 2,000 3,000 4,000 Santa Cruz Province Social Reserve Allocation, by Vessel Type over Time Ice Trawler Freezer Processor Factory Processor Coastal Rada o Ria Source: Consejo Federal Pesquero, Annual ITQ Reports *DO NOT CITE

15 Future Directions Surveys with fishery firms and vessel owners Analyze government data on landings and allocations, Reduced form & Dynamic discrete choice models Expect to find different social and economic outcomes across different fisheries, fleet types, and coastal regions. Thematic Questions To what extent do the social and economic outcomes align with the envisioned goals of the program? Do trading restrictions cause unintended consequences for the coastal fleet? Are vessels substituting effort to unregulated fisheries, like red shrimp? Is the ITQ program inducing high-grading and bycatch?

16 Questions? Acknowledgements NSF Graduate Research Fellowship Consejo Federal Pesquero Stephanie Stefanski

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