Commercial Sardine Fishing in Mexico: A Financial Perspective Working towards the well-being of the industry, ecosystem, and community
The pacific sardine (Sardinops sagax) and the fishery subsidies have benefited the exponential growth of the commercial sardine fishery in Mexico where most if not all the players are for-profit organizations, and money comes up tops. Yet there is an ongoing debate on responsible fishing practices and the overall management of Mexico’s ocean resources. This study focused on the profitability and financial risks associated with commercial sardine fishing practices to guide and aid in the creation of management tools that consider the industry’s financial objectives, proper use of public resources, and responsible fishing practices. The study used a financial modeling research approach to determine the profitability of the commercial sardine fishing in the Gulf of California considering fuel subsidies contribution. By creating a profit and loss statement, the gross profit margin was calculated. The study shows that the sardine fishing practices in this area were profitable for the year 2015 with a gross profit margin of 36%, and that 9% are the fuel subsidies contribution, which suggests that there is a significant monetary support from the government that allows the commercial sardine fishing activity to be profitable.
This work highlights the knowledge gaps in analyzing profitability of the commercial sardine fishery yet provides a financial perspective on the potential risks for the various stakeholders to make decisions in uncertain conditions like climate change, environmental variability, and a fishery subsidy reform while working for the well-being of the industry, ecosystem, and community