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8. THE MOROCCO SARDINE FISHERY

8.1 Background

Morocco is the main participant in the North African sardine (Sardina pilchardus) fishery. The canning and meal industry began in 1930 and increased rapidly after 1945 until the mid-fifties. During the sixties some problems and contraction were experienced.

The major part of the landings, caught by purse-seiners, are exported either in the form of canned sardines or fish meal and oil. Earlier work for FAO by FIDECO showed a considerable potential for domestic marketing of sardines, but there has been no further development suggesting that with a population increase of about 3% per year, the domestic demand may be higher.

The FAO project introduced CSW technology into this fishery with some success from the techological point of view.

8.2 Technological Development

The fish is caught by purse seiners varying considerably in size and power but there is little use of ice. If fish of sufficiently high quality is to be made available, then conversion to include CSW storage is important.

Fish is currently transported by truck to the processing plants in boxes without ice. If fish is to be transported from the ports to the provincial towns and rural areas, then there should be CSW buffer storage facilities in the port. The trucks providing the transport service should be insulated, keeping the temperature low by the use of ice. Storage facilities are needed in the provincial cities and local transport for deliveries to urban market places, retailers and rural souks.

8.3 The Pre-Feasibility Study

The study includes the conversion of purse seiners to CSW storage, investment in CSW tanks on shore, the purchase of 10-t trucks for long distance deliveries, e.g., Agadir to Meknes, and, 3.5-t trucks for local deliveries.

Normal operation of traditional Agadir pursers means overnight trips to nearby fishing grounds in the region marked A on the map (Figure 5). The operational analysis for this investment study assumes that a converted purser would venture much further to relatively unexploited grounds to the south (B on map), thereby gaining opportunities of higher catch rates. As a result of improved quality through CSW storage, a much greater proportion of the catch would be suitable for marketing as fresh fish. Only a conservative estimate has been used here, with no price advantage to the vessel. The incremental priced used in this analysis are insufficient to cover the operating costs of inland distribution to total revenues to enable an integrated operation of pursers, buffer store and road vehicles to be profitable. It is assumed throughout that the CSW buffer store at Agadir can hold one day's average long-distance transport capacity.

Figure 5

Figure 5 Main fishing areas (Zones A, B and C) of the sardine fishery

The integrated investment comprises a total of 25 pursers modified at 5 per year, plus the optimal number of road vehicles to distribute the designated fresh portion of landings (a peak of 45 long-distance and 34 local delivery trucks). The total capital invested is about 45 million dirhams over 10 years, of which most is in vehicles: only 4.25 million dirhams is required for vessel modifications.

8.4 Financial Analysis

The financial analysis, based on the assumptions described above for prices and costs, shows that an integrated project can be viable. The financial internal rate of return (FIRR), estimated at 24.2% is highly sensitive to changes in revenues and operating costs, but not to changes in the investment cost.

In the indicative example of financing, interest rates of 12% have been used on loans in the first year borrowed over 10 years. Loans in other years have been repaid over 4 years. None of these loans has been allowed a period of grace.

8.5 Economic Analysis

The economic analysis is based upon the financial data with the following adjustments:

  1. prices for capital goods have been adjusted by a factor of 80% to exclude the tax component;

  2. no adjustment has been made for labour costs;

  3. transfer payments have been eliminated.

The economic rate of return is estimated at 59% showing the market effect of high levels of taxation within the fishery.

8.6 Conclusions

The purse-seiner fishery in Morocco is charaterized by a complicated system of quotas, fixed prices and quality requirements favouring steady supplies to the canning industry. Any departure from this pattern will require adaptations in many areas and it is probable that prevailing conditions will constrain the activities of CSW purse seiners more than the analysis suggests. However, the rates of return and the sensitivity analyses give cause for optimism for such a project, but it is important that an integrated system with the marketing sector should be established.

The project cannot be regarded as having passed the identification “test” as there is a requirement for additional projects in two areas.

The pre-requisites for an investment project are a design study for converting purse seiners to CSW storage, and an up-to-date survey for northern Morocco to determine the market potential of fresh small pelagic fish.

8.7 Brief Description of Analysis Tables for Morocco

Financial Unit = M.Dh 1 000

Analysis TableDescription
8.1Agadir purser; differences in costs, prices and operations between a traditional vessel and one modified for CSW stowage.
8.2Operational analysis for traditional purser.
8.3Operational analysis for purser modified for CSW stowage.
8.4Incremental landings,costs and revenues resulting from an investment schedule to convert 25 pursers for CSW stowage over 5 years.
8.5Costs for a 10 t insulated truck for long-distance operation and for a 3.5 t local delivery truck.
8.6Operational analysis for inland distribution from Agadir by road, of incremental landings resulting from the fleet modification investment schedule in analysis 8.4. Calculates optimum number of trucks and utilization of both landings and transport.
8.7Financial and economic analyses of costs and benefits, with sensitivity analyses.


Agadir Purser Analysis Table 8.1
Length o/a22 m        
Main engine power300 hp        
Power used fishing(% of full)40%        
Fuel consumption0.18 kg/hp/h        
Steaming speed9.1 kn        
Fuel capacity5 t        
TJB55.0tx       
Conversion Cost, CSW Stowage170 M.Dh'000        
Capital Cost, boat1300 M.Dh'000        
nets325 M.Dh'000        
total1625        
Depreciation period10 yrs        
Annual depreciation17.0 M.Dh'000 (CSW conversion only)        
Operating pattern -------- Traditional Operation ----------------- Operation with CSW ------- 
Stowage rate0.4t/m^3   0.7t/m^3  
Distance to fishing grounds7 nm   80 nm    
Steaming time to grounds0.77 h   8.75 h    
Maximum fishing time9.00 h   17.00 h    
Maximum trip duration10.53 h   34.50 h    
Days at sea, year 1180   225    
Annual trend, days at sea-1.00%   -1.00%    
 mackerelsardineothertot/avemackerelsardineothertot/ave 
Proportion of catch35.1%60.3%4.6%100%35.1%60.3%4.6%100% 
Catch rate on grounds, year 10.320.540.040.900.560.960.071.59t/h
Annual trend, catch rate0.0%0.0%0.0% -3.0%-3.0%-3.0%  
Destination; fresh8.0%8.0%8.0% 40.0%40.0%40.0%  
freezing3.0%3.0%3.0% 3.0%3.0%3.0%  
canning19.0%19.0%19.0% 19.0%19.0%19.0%  
meal/oil70.0%70.0%70.0% 38.0%38.0%38.0%  
Price to boat, year 1; fresh0.791.070.87 0.791.070.87 M.Dh/kg
freezing0.791.070.87 0.791.070.87 M.Dh/kg
canning0.851.070.75 0.851.070.75 M.Dh/kg
meal/oil0.320.320.32 0.320.32 0.32M.Dh/kg
Average price to boat; year 10.470.550.460.520.620.790.640.72M.Dh/kg
Annual trend, fish prices0.0%0.0%0.0% 0.0%0.0%0.0%  
Price of ice200M.Dh/tonne       
Price of gasoil; year 11.90M.Dh/kg       
Annual trend, gasoil price0.0%        


Agadir Purser Analysis Table 8.2
Year12345678910
Traditional operation          
Days at sea180.0178.2176.4174.6172.8171.0169.2167.4165.6163.8
Catch rate; mackerel0.320.320.320.320.320.320.320.320.320.32
sardine0.540.540.540.540.540.540.540.540.540.54
other0.040.040.040.040.040.040.040.040.040.04
total0.900.900.900.900.900.900.900.900.900.90
Catch/trip, all species; tons8.108.108.108.108.108.108.108.108.108.10
Average fishing time,'trip; h9.009.009.009.009.009.009.009.009.009.00
Catch/trip, tons; mackerel2.842.842.842.842.842.842.842.842.842.84
sardine4.894.894.894.894.894.894.894.894.894.89
other0.370.370.370.370.370.370.370.370.370.37
Average trip duration; days0.440.440.440.440.440.440.440.440.440.44
Average number of trips180.0178.2176.4174.6172.8171.0169.2167.4165.6163.8
Annual catch, tons; mackerel512507502496491486481476471466
sardine880871862853845836827818809801
other66666564646362626160
total1458144314291414140013851371135613411327
Revenue, M.Dh '000; mackerel241.8239.4237.0234.5232.1229.7227.3224.9222.4220.0
sardine479.4474.7469.9465.1460.3455.5450.7445.9441.1436.3
other30.730.430.129.829.529.228.928.628.327.9
total751.9744.4736.9729.4721.9714.4706.8699.3691.8684.3
Operating costs, M.Dh '000          
Taxes61.461.461.461.461.461.461.461.461.461.4
CNSS38.338.338.338.338.338.338.338.338.338.3
Total,Taxes and Fees99.799.799.799.799.799.799.799.799.799.7
Fuel94.893.892.991.991.090.089.188.187.286.2
Lubricants4.74.74.64.64.54.54.54.44.44.3
Food10.110.110.110.110.110.110.110.110.110.1
Ice0.00.00.00.00.00.00.00.00.00.0
Miscellaneous3.03.03.03.03.03.03.03.03.03.0
Total, Common Costs112.7111.7110.7109.7108.7107.7106.7105.7104.7103.7
Crew's Share323.8319.9315.9312.0308.1304.2300.3296.4292.5288.5
Repairs, maintenance39.052.065.078.091.0104.0117.0130.0143.0156.0
Nets and gear325.00.00.0325.00.00.0325.00.00.0325.0
Insurance26.023.420.818.215.613.010.47.85.22.6
Total, Owner's Costs390.075.485.8421.2106.6117.0452.4137.8148.2483.6
Total Costs926.1606.6612.1942.6623.1628.6959.0639.5645.0975.5
Prime de Filet75.274.473.772.972.271.470.769.969.268.4
Payment Surplus-99.0212.3198.5-140.2171.0157.2-181.5129.7115.9-222.8
Total operating cost109.6108.6107.6106.6105.6104.6103.6102.6101.7100.7


Agadir Purser Analysis Table 8.3
Year12345678910
Operation with CSW          
Days at sea180.0178.2176.4174.6172.8171.0169.2167.4165.6163.8
Catch rate; mackerel0.560.540.520.510.490.470.460.440.420.41
sardine0.960.930.900.870.840.810.790.760.730.70
other0.070.070.070.070.060.060.060.060.060.05
total1.591.541.491.451.401.351.301.251.211.16
Catch/trip, all species; tons27.0026.1925.3824.5723.7622.9522.1421.3320.5219.71
Average fishing time/trip; h17.0017.0017.0017.0017.0017.0017.0017.0017.0017.00
Catch/trip, tons; mackerel9.489.198.918.638.348.067.777.497.206.92
sardine16.2915.8015.3114.8214.3413.8513.3612.8712.3811.89
other1.231.191.161.121.081.051.010.970.940.90
Average trip duration; days1.441.441.441.441.441.441.441.441.441.44
Average number of trips90.089.188.287.386.485.584.683.782.881.9
Annual catch, tons; mackerel853819786753721689658627596567
sardine146614081351129412391184113010771025974
other11110610298948985817774
total2430233422392145205319621873178516991614
Revenue, M.Dh '000; mackerel531.3510.2489.4469.0448.8429.0409.5390.3371.5352.9
sardine1151.01105.3060.31016.0972.3929.4887.2845.6804.8764.6
other70.767.965.162.459.757.154.551.949.447.0
total1752.91693.31614.81547.31480.91415.51351.21287.91225.61164.5
Operating costs, M.Dh '000          
Taxes61.461.461.461.461.461.461.461.461.461.4
CNSS38.338.338.338.338.338.338.338.338.338.3
Total,Taxes and Fees99.799.799.799.799.799.799.799.799.799.7
Fuel224.4222.1219.9217.7215.4213.2210.9208.7206.4204.2
Lubricants22.422.222.021.821.521.321.120.920.620.4
Food10.110.110.110.110.110.110.110.110.110.1
Ice160.4154.0147.7141.5135.5129.5123.6117.8112.1106.5
Miscellaneous3.03.03.03.03.03.03.03.03.03.0
Total, Common Costs420.4411.5402.8394.1385.6377.1368.8360.5352.4344.3
Crew's Share739.7703.3667.4632.1597.4563.2529.6496.6464.2432.3
Repairs, maintenance39.052.065.078.091.0104.0117.0130.0143.0156.0
Nets and gear325.00.00.0325.00.00.0325.00.00.0325.0
Insurance26.023.420.818.215.613.010.47.85.22.6
Total, Owner's Costs390.075.485.8421.2106.6117.0452.4137.8148.2483.6
Total Costs1649.81289.91255.71547.11189.21157.01450.51094.61064.41359.9
Prime de Filet175.3168.3161.5154.7148.1141.5135.1128.8122.6116.4
Payment Surplus278.5561.8520.6154.9439.7400.035.8322.1283.8-79.0
Total operating cost417.3408.5399.7391.1382.6374.1365.8357.5349.3341.3


Agadir Purser Analysis Table 8.4
Year12345678910
Shore operations; days/year300(every year)        
Incremental Values for one vessel from using CSW          
Incr. Revenue1001939878818759701644589534480 M.Dh '000
Incr. Operating cost308300292284277269262255248241 M.Dh '000
Incr. fresh tonnes/day: mackere1.01.00.90.90.80.80.70.70.70.6 tonnes/day
sardine1.71.61.61.51.41.41.31.21.21.1 tonnes/day
other0.10.10.10.10.10.10.10.10.10.1 tonnes/day
Schedule for Investment Project          
Number of pursers converted 55555****************************
Incremental Revenue 5005969914089181782197320474190011755516134 M.Dh '000
Incremental Operating cost 153930384498592173057114692567396555 M.Dh '000
Incr. fresh tonnes/day : mackerel 5.09.814.418.722.921.820.819.718.7 tonnes/day
sardine 8.616.824.732.239.337.535.733.932.2 tonnes/day
other 0.61.31.92.43.02.82.72.62.4 tonnes/day
Investment cost for CSW8508508508508500000-850 M.Dh '000
Depreciation 85170255340425425425425425 M.Dh '000


Inland Distribution from Agadir Analysis Table 8.5
Vehicle typeLong distance 10 ton (insulated)Local 3.5 ton (not insulated)
Payload6.67 tons2.33 
Round trip distance1500 km200 
Round trip duration4 days1 
Capital cost400.0 M.Dh '00090 
Depreciation period4 years4 
Operating costs/year; M.Dh '000    
 activestandbyactivestandby
Insurance20.0020.003.503.50
Road tax10.0010.001.401.40
Fuel97.03 22.77 
Lubricants9.70 2.28 
Maintenance20.0020.006.006.00
Driver25.00 18.00 
Assistant driver15.00   
Driver overnight allowance15.30   
Ice23.91 31.87 
Total235.9450.0085.8210.90
Fuel price3.45M.Dh/litre  
Fuel consumption25.00litres/100km11.00 
Ice price200M.Dh/ton  


Inland Distribution from Agadir Analysis Table 8.6
Year12345678910
Shore operations; days/year300(every year)        
Ave landed/day, tons; mackerel 5.009.7914.3618.7222.8721.8120.7619.7418.73
sardine 8.6016.8324.6832.1739.3037.4835.6933.9232.19
other 0.651.271.862.432.972.832.702.562.43
Transport reqd/day; tons 14.2626.6239.0450.8962.1759.2956.4553.6650.92
Long distance trucks/day; optimum 3468109998
selected 3468109998
Long distance trucks required; active 121624324036363632
Long distance trucks required; standby 223454444
Number of long distance trucks purchased 144992309919
Local delivery vehicles required: active 91218243027272724
Local delivery vehicles required: standby 122343333
Local delivery vehicles purchased; 104671706714
CSW buffer store; tons 202740536760606053
Ave transported/day to inland markets 12.1818.7227.8536.8345.1741.9641.2340.4736.84
mackerel 4.276.8810.2413.5516.8015.4315.1614.8913.55
sardine 7.3511.8317.6023.2828.8726.5226.0625.5823.29
other 0.550.891.331.762.182.001.971.931.76
Ave transported/year to inland markets;t 365358838753115771435513188129591272011579
Incremental prices; mackerel0.50M.Dh/kg(Inland market v fish meal)
sardine0.50M.Dh/kg       M.Dh '000
other1.00M.Dh/kg        
Incremental revenue;mackerel 64110331536203225202315227522332032
sardine 110217752641349243313979391038383493
other 83134199264327301295290264
total 182629414376578971776594648063605789
Operating cost, all vehicles 3715490573579810122621101111011110119810
CSW buffer 128203302400496456448439400
Investment cost, all vehicles 650019604140423010730041404230-935
CSW buffer1000         
Depreciation, all vehicles 150319702905384047754308430843083840


Summary: Inland Distribution from Agadir Analysis Table 8.7
Year12345678910
1. Cash Inflow          
Incremental Revenue;fleet 5005969914089181782197320474190011755516134
ashore 182629414376578871776594648063605789
Total Inflow 68311264118465239672915127068254812391521924
2. Cash Outflow          
Incremental Operating cost          
Fleet 153930384498592173057114692567396555
Trucks 3715490573579810122621101111011110119810
CSW buffer store 128203302400496456448439400
Sub-total Operating cost 5381814612158161312006418581183841818916765
Investment Cost          
Fleet8508508508508500000-850
Trucks 650019604140423010730041404230-935
CSW buffer store1000         
Sub-total Investment Cost1850735028104990508010730041404230-1785
Total Outflow1850127311095617148212113079418581225242241914980
3. Net Benefit Before Financing-1850-5900168513172756-16438487295714956944
Financing (indicative example)          
Loan150001250012500       
Borrower's Contribution500030003000       
Repayment on Principal855292552445873657873674783189021162370
Interest Payment1800319743463717301222231339765538284
Net Financing1734593785910-9590-9590-9590-6122-2655-2655-2655
Net Cash Flow; annual1549534787595-8273-6834-112332365302-11594289
cumulative15495189732656818295114612282593289517366025
Internal Rate of ReturnFinancial:24.2%    Economic:59.0%  
Sensitivity Analysis  Switching Values     Switching Values
Variations of:- IRRat 10.0%   IRR at 10.0%
 by:-     by:-   
Investment Cost10.0%17.0% 21.3%  10.0%51.1% 88.4%
Operating Cost10.0%4.8% 7.5%  10.0%44.4% 28.2%
Revenue-10.0%-5.9% -5.3%  -10.0%34.0% -17.6%



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