gomos

Economic Contribution of Commercial Black Drum Fishing in the Gulf of Mexico States

GOMOS
Figure 1. Black drum (Pogonias cromis). Illustration by Joe Jewell. Mississippi Saltwater Fish. Mississippi Department of Marine Resources, Biloxi, MS.

Commercial Landings

The long-term annual commercial black drum (Fig. 1) landings in the Gulf of Mexico states are shown in Fig. 2. Since 2011, the Gulf supplied 96% of the total black drum domestic landings averaging 5.8 million pounds and valued at $5.3 million annually. Louisiana and Texas were the most significant suppliers averaging 64% and 30% of the total domestic landings, respectively. Dockside prices of black drum averaged about $0.91 per pound during the past six years (Fig. 3).

Drum-Black-Annual-Landings-GOM
Figure 2. The primary vertical axis shows the yearly commercial landings in pounds while the secondary vertical axis indicates the annual commercial dockside values in dollars. Source of raw data: NOAA Fisheries. Last visited: August 7, 2018. http://www.st.nmfs.noaa.gov/.

Drum-Black-Dockside-Prices-GOM
Figure 3. The vertical axis shows the average yearly dockside prices in dollars per pound. Source of raw data: NOAA Fisheries. Last visited: August 7, 2018. http://www.st.nmfs.noaa.gov/.

Economic Contributions

The economic contribution commercial black drum fishing makes region-wide is crucial information in making private investment decisions, formulating government policy, and developing research and extension programs for the industry. The IMPLAN (http://implan.com/) software and the 2013 input-output data for the five Gulf States were used to estimate the economic contribution of commercial fishing to the Gulf of Mexico regional economy in 2016. The economic analysis used sector 17 or commercial fishing of the 2013 IMPLAN input-output data.

The annual commercial dockside values of black drum in the Gulf of Mexico states in 2016 reached $6.1 million, which was 19.4% more than the average yearly dockside values in the region since 2011. The total output contribution of commercial Black drum fishing in 2016 amounted to $11.6 million (Fig. 4). This output of goods and service created by the black drum commercial fishing and related industries sustained 161 jobs and generated labor income amounting to $4.2 million in the Gulf regional economy.

The black drum commercial fishing industry generates annual tax revenues for the Gulf States and the U.S. federal government. More than $711,000 was projected to have been paid by households and businesses in 2016 to the federal government as social insurance tax, tax on production and imports, corporate profit tax, and personal income tax. The Gulf States were anticipated to have collected taxes from households and businesses in 2016 amounting to almost $348,000 as social insurance tax, tax on production and imports, corporate profits tax, and personal tax.

Black-drum-Gulf-economic-contribution
Figure 4. The total economic contribution includes direct, indirect and induced effects estimated by using 2016 annual landing values and 2013 IMPLAN data. The local purchases percentage was set at 100%. The number of jobs is rounded off.

Read more at http://extension.msstate.edu/newsletters/mississippi-marketmaker.