Journal of Oceanography and Marine Research
Open Access

Fishery Economics: Balancing Profit, Sustainability, and Food Security

Nowak Harden^{* *}Correspondence: Nowak Harden, Department of Biology, Dalhousie University, Halifax, Nova Scotia, Canada, Email:

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Description

Fishery economics is a branch of economics that deals with the management, production, and sustainability of fisheries—the commercial activity of catching, processing, and selling fish and seafood. With over 3 billion people depending on fish as a primary source of protein and millions earning their livelihoods from fishing, the economic role of fisheries is vital. However, the delicate balance between economic gain and environmental sustainability presents a growing global challenge.

This article explores the key concepts of fishery economics, including resource allocation, market dynamics, sustainability issues, and policy tools aimed at ensuring long-term benefits for both people and the planet.

Economic importance of fisheries

Fisheries contribute significantly to national and global economies. According to the Food and Agriculture Organization (FAO), the fishing industry provides employment for more than 60 million people worldwide, both directly (fishers, processors) and indirectly (logistics, equipment, marketing). In coastal and island nations, fisheries may constitute a major portion of the GDP and export revenues.

Fish and seafood are also among the most traded food commodities globally. Developing countries, in particular, rely on fishery exports for foreign exchange. Beyond economic value, fisheries contribute to food security, nutrition, and cultural identity in many communities.

Open access and the “tragedy of the commons”

Traditional economic models show that fisheries often operate under conditions of open access, meaning anyone can enter the fishery and harvest as much as they can. While this may initially benefit communities through job creation, it often leads to overfishing—a phenomenon where the fish population declines due to excessive harvesting.

This leads to the so-called “Tragedy of the Commons”, where individuals, acting in their own self-interest, deplete a shared resource, leaving everyone worse off in the long term. Economically, this results in reduced catches, lower profits, rising operational costs, and ultimately the collapse of the fishery.

Maximum sustainable yield vs. maximum economic yield

In fishery economics, two critical concepts guide decision-making:

Maximum Sustainable Yield (MSY): The largest amount of fish that can be harvested annually without compromising the stock’s ability to replenish. It’s a biological concept rooted in ecological balance.

Maximum Economic Yield (MEY): The level of effort that produces the highest possible economic return from a fishery. MEY generally requires less effort than MSY, as the cost of fishing increases with more intensive harvesting.

Economists argue that targeting MEY rather than MSY is both more sustainable and more profitable in the long run. However, achieving MEY requires regulation, monitoring, and sometimes a reduction in fishing effort—moves that can be politically and socially sensitive.

Market forces in fisheries

Fish markets operate under complex supply-and-demand conditions influenced by:

• Seasonality and weather conditions

• Stock abundance and variability

• Consumer preferences and dietary trends

• International trade policies and tariffs

• Technological advancements in fishing gear and storage

Price volatility is common in fisheries, especially in wild capture fisheries where supply is less predictable. In contrast, aquaculture (fish farming) has added stability and growth to the sector, now accounting for over half of the fish consumed globally.

Economic tools for sustainable fisheries

Governments and international bodies use a range of economic tools to manage fisheries and avoid overexploitation:

Catch quotas: Regulating the amount of fish that can be caught annually helps maintain fish stocks. These can be assigned to individuals or groups as Individual Transferable Quotas (ITQs), which can be bought or sold.

Fishing licenses and effort controls: Limiting the number of boats, fishing days, or types of gear helps control effort and reduce pressure on resources.

Subsidy reforms: Many countries provide subsidies to fishers, but poorly targeted subsidies can encourage overfishing. Reforms are aimed at redirecting funds toward sustainability and conservation efforts.

Marine Protected Areas (MPAs): Setting aside no-fishing zones can allow fish stocks to recover and even spill over into adjacent fishing areas, increasing overall productivity.

Economic incentives and co-management: Encouraging communities to manage their local fisheries through co-management and providing economic incentives for sustainable practices helps align short-term behavior with long-term goals.

Global Challenges and the Path Forward:

Global fish stocks are under increasing stress. According to the FAO, over 35% of global fish stocks are overexploited, with climate change, illegal fishing, and habitat degradation adding further pressure.

Fishery economics thus faces several key challenges:

• Designing effective policies that balance ecological sustainability and economic viability

• Ensuring equity among small-scale fishers and large industrial operators

• Incorporating climate change projections into resource management

• Enhancing data collection and enforcement capabilities

The shift toward Ecosystem-Based Fisheries Management (EBFM)—which considers environmental, social, and economic factors—marks a positive direction for the future.

Conclusion

Fishery economics lies at the intersection of ecology, livelihood, and trade. It plays a central role in shaping policies that ensure the sustainable use of one of the planet’s most valuable renewable resources. By combining sound economic principles with environmental stewardship and community involvement, it is possible to manage fisheries in a way that secures both economic benefits and ocean health for future generations.