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Profits, cumulative profit and revenue obtained with and without subsidies (in € million).

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posted on 2011-05-26, 00:17 authored by Johanna Jacomina Heymans, Steven Mackinson, Ussif Rashid Sumaila, Andrew Dyck, Alyson Little

Profits (pink) and gross revenue (blue) in the “with subsidies” model, pelagic trawl and seine fleet (2E and 2F) and the Nephrops trawlers (2G and 2H), with subsidies and profit when subsidies were removed from the model (red). All left hand figures show true values and right hand figures show cumulative values - all in € million. In all cases gross revenue is higher than profit because costs are subsidised. Both the demersal (2C, 2D) and pelagic fleets (2E, 2F) were profitable for the whole time series, although the demersal trawlers profitiability showed an upward trend while the pelagic fleet profitability declined. However, the initial difference in profits for demersal and Nephrops fleets seem large but that is due to the scale of their profits compared to that of the pelagic fleet. The differences between gross revenue (square) and profit in the model without subsidies (red) diminish over the 12 years of the simulation due to the fact that the effort for all these fleets decline over time (Figure 1), which reduces the variable (effort related) cost in the Ecopath model without subsidies. The beam trawlers (2A, 2B) became profitable only when effort declined substantially, because of the reduction in effort reduces the variable costs. Similarly, the Nephrops trawlers (2G, 2H) became profitable in 1999, although cumulatively they had still not shown a profit by 2003, even though their gross revenue increased over time.