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EXPLOITATION of FISHING RESOURCES in SUCEAVA COUNTY: PROFITABILITY ANALYSIS (Rb/T) of SPECIALIZED FARMS in a MOUNTAINOUS REGION

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EXPLOITATION of FISHING RESOURCES in SUCEAVA COUNTY: PROFITABILITY ANALYSIS (Rb/T) of SPECIALIZED FARMS in a MOUNTAINOUS REGION Arch. Biol. Sci., Belgrade, 67(3), 909-920, 2015 DOI:10.2298/ABS140307052B EXPLOITATION OF FISHING RESOURCES IN SUCEAVA COUNTY: PROFITABILITY ANALYSIS (RB/T) OF SPECIALIZED FARMS IN A MOUNTAINOUS REGION Ionel Bostan1,*, Dorel Mates2, Elena Hlaciuc1, Veronica Grosu1, Marian Socoliuc1, Bogdan Andronic3, Marius Ciubotariu1, Anisoara Apetri1, Gheorghe Morosan1 and Camelia Mihalciuc1 1 Doctoral School of Economics, Stefan cel Mare University, Suceava, Romania 2 Doctoral School of Economics, West University, Timișoara, Romania 3 Faculty of Economic Sciences, Danubius University, Galati, Romania *Corresponding author: [email protected] Abstract: Aquaculture is an economic sector that has rapidly grown in recent years, due to European programs and the support provided for this activity. Given this accelerated development and the attention this sector receives on an interna- tional level, this paper focuses on identifying the growth factors in the sector and highlighting certain general aspects of its development in Romania, followed by an analysis of the available data on the exploitation of fishing resources in Suceava County in terms of performance. Key words: aquaculture; fishing; environment/ecology; European policies/instruments; profitability; assets; investments. Received March 7, 2014; Accepted July 1, 2014 INTRODUCTION healthy choices for EU citizens, as well as the fact that this is a dynamic sector whose development will cre- Fish farming and aquaculture in the European Union ate jobs and decent standards of living for fishermen is one of the food production sectors that has devel- (EC, 2013a). The efforts of the European Commission oped at a rapid pace, supplying almost half of the fish have targeted a radical change in this sector (Dam- and seafood quantities consumed worldwide (EC, anaki, 2014), encouraging EU member states to de- 2013a). On a European level, aquaculture accounts for velop multi-annual plans for promoting aquaculture almost 20% of fish production, standing out in terms through the exchange of best practices. of quality and sustainable development, as well as in terms of the strict safety standards imposed (Churchill As world population continues to rise in the fol- and Owen, 2010; OECD, 2013). European aquacul- lowing decades and the global standards of living are ture provides high quality products, complying with increasingly higher, fish demand will equally aug- environmental sustainability, animal health and con- ment. Since global harvests of wild fish are already sumer protection standards (EC, 2013b). However, being exploited to their maximum sustainable level, production in this sector has come to a standstill much of this demand will have to be provided for from lately, contrasting with the rapid development being aquaculture. The aquaculture sector of the EU plays recorded in other regions of the world. Under these a significant part, with a turnover of about € 3 bil- circumstances, the objectives of the European Com- lion, providing around 65000 jobs in 2005 (EC, 2009), mission for fish farming include the requirement that while in 2010, aquaculture production amounted to € both activities are sustainable from an environmental, 3.1 billion and the output level has remained constant economic and social standpoint and that they provide in the subsequent years. From a financial standpoint, 909 910 Bostan et al. the European Fisheries Fund (EC, 2013c) provides aid employment in the coastal and inland regions of the for the fishing industry and for coastal communities, union. A close relationship with the processing sector enabling them to adjust to the constantly changing would considerably improve the provision of new jobs circumstances and to consolidate their economic po- and competitiveness in both sectors. Aquaculture is sition and environmental sustainability. one of the EU strategy pillars in terms of “blue” (EC, 2012a) growth and its development could contribute The EFF has projected a budget of € 4.3 billion to the implementation of the Europe 2020 strategy. for 2007-2013 (Table 1), available for all branches of this sector. Among these, aquaculture, fish processing and marketing, sea and inland fishing (for more eco- friendly production methods) and common interest MATERIALS AND METHODS measures (for improving product traceability and la- Based on the data/information provided by EU- beling) are being considered. At present, the fishing sector of the EU accounts for 25% of the fish market ROSTAT, INSSE, MEF, MARD, etc., we will try to of the European Union, while 65% comes from im- identify, as accurately as possible, the parameters ports and 10% is accounted for by the EU aquaculture of fishing exploitation in Romania, subsequently ex- sector (EC, 2011). The total possible consumption tending our investigation to the fishing sector in the of fishing and aquaculture products in the EU has Suceava County. The available research on this topic reached approximately 13.2 million tons (according is relatively scarce, whether it approaches the subject to the data published on EUROSTAT). Based on the directly or incidentally like Tahvonen (2009), Wilen current labor productivity, each percentage point of (2000), Holland (2003), Dasgupta and Heal (1979), the present total consumption in the EU is account- Eswaran et al. (1983), Haddon (2001), Walters (1969) ed for from the domestic production of aquaculture and Moxnes (2005). Clearly, as the title of the paper and would lead to the provision of about 3000-4000 suggests, we will mostly focus on the profitability ra- full-time jobs (CSTEP/STECF-OWP-12-03 (EC, tios of certain mountainous/sub-mountainous farms, 2013b)). This number confirms the fact that, even Suceava County. Since turnover (T) provides clues though aquaculture is a relatively small part of the on the economic performance of fishery farms, be- EU economy, it could stimulate economic growth and ing used as a criterion for classification, in our study Fig. 1. Categories of fish aquaculture (MARD, 2013a). FISHING RESOURCES IN SUCEAVA COUNTY 911 we use the T indicator that accurately reflects the in- Table 1. Allocation of the EFF aid (2007-2013) (EC, 2012b). come/revenues from its activity in a period of time Non Convergence Total (at market prices). Member State convergence (€) (€) (€) Belgium 26261648 26261648 RESULTS Bulgaria 80009708 – 80009708 Czech republic 27106675 – 27106675 Exploitation of fishing resources in Romania Danemark – 133675169 133675169 Germany 96861240 59004169 155865417 At the national level, there is a strategy directed at the Estonia 84568039 – 84568039 fishing sector for the time span 2014-2020 (MARD, Ireland – 42266603 42266603 2013a), which is aligned with European policies and Greece 176836728 30995509 207832237 with the open dialogue process with the interested partners, as set out by the Ministry of European Spain 945692445 186198467 1131890912 Funds as coordinator of the programming of Europe- France 34250343 181802741 216053084 an funds granted during 2014-2020. The Work Group Italy 318281864 106060990 424342854 for Fishing and Aquaculture (WGFA, 2014) has been Cyprus – 19724418 19724418 created at the Ministry of Agriculture and Rural De- Latvia 125015563 – 125015563 velopment (MARD) for a better coordination of this Lithuania 54713408 – 54713408 sector. WGFA includes important players in the fish- Hungary 34291357 559503 34850860 ing sector, local government structure representatives, Malta 8372329 – 8372329 fisheries associations, fishers and processors, as well Netherlandes – 48578417 48578417 as specific non-governmental organizations. Austria 187326 5071992 5259318 Poland 734092574 – 734092574 General presentation of the fishing sector from Portugal 223943059 22542190 246485249 a geographical, economic and social standpoint Romania 230714207 – 230714207 Slovenia 21640283 – 21640283 The sustainable and lasting development of fish- Slovakia 12681459 1007069 13688528 ing and aquaculture is an average-term social and economic need that entails the following objectives Finland – 39448827 39448827 (MARD, 2013a): Sweden – 54664803 54664803 United Kingdom 43150701 94677188 137827889 • promoting competitive fisheries and aquaculture, TOTAL 3252409308 1052539711 4304949019 supporting manufacturing organizations and fishing farms that are viable from an economic, • promoting the role of traditional fishing in fish- sustainable, social and environmental standpoint; ing farms as an activity that generates oppor- • p romoting policies that encourage the balanced tunities for the development of the local econ- inclusion and development of fishing areas, im- omy (the provision of jobs in rural areas, the proving sustainable management and exploita- capitalization of less productive land), as well tion of live aquatic resources; as environmental benefits or services (wet areas, biodiversity, microclimate). • encouraging the development and enforcement of EU integrated maritime policies, alongside the co- The hydrographical network of Romania covers hesion and common policies in the fishing sector; 843710 ha, accounting for 3.5% of the total surface of 912 Bostan et al. the country. Fishing and aquaculture, alongside fish and (in terms of GDP and Gross Added Value - GAV), fish-product processing and marketing, are activities its importance mainly lies with the social role it has developed throughout the country. There were about for coastline communities (the resulting financial re- 100025 fisheries in Romania in 2005 (WGFA, 2014), sources support a significant
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