Econ: Cod 2013 - Assignment Example

Trends in the cod market. Unit Trends in the cod market. Cod catches increased throughout the 1950s and 60s, peaking at 800,000 tons in 1968.( Canadian history) The export price for cod in 1968 was 0.80 cents per pound and the export price for cod in 2008 was 1.45 dollars per pound and 275 million dollars in total. Demand increased between 1968 and 2008 while supply on the other hand reduced which resulted in increased prices.There was an increase between 1960-61, the demand then stabilized between 1961-63, there was a decline between 1963-64 then a gradual increase between 1964-1967.

between 1967-68 there was a sharp increase then a sharp decline from 1968-1971.looking at this period what one is able to conclude is that demand increased gradually in that period such that by the year 1968 demand was at its highest.In 1968, about 50% of the worldwide cod catch came from the Newfoundland fishing grounds increased and automated fishing had led to unsustainable levels of fishing and by 1993 the production from Newfoundland had collapsed almost to zero. Canadian cod production from 1948-1968 was not efficient and suffered from a lack of regulation and control which led to the problems that the sector is experiencing currently.

The fishery was closed in 1993, the Canadian government did not follow an optimal policy in its regulation of these fishing beds rather greed and excesses lead to the collapse of the industry. Politics played a part in this with expansion and ignorance of the dwindling stock of cod from the fishing grounds.According to the Scientific American article cod populations are recovering with populations higher than they’ve been since the early-1990s and the weights of individual fish on the rise. This is due to there still being enough cod, haddock and redfish around to generate the eggs and larvae to recover and the factory being shut down for two decades giving the ecosystem time to reorganize and work itself out.

However the article notes that not all ecosystems are able to recover.Decline in cod production from 1968-2008 must have led to an increase in markets for other fish species to fill the gap left by the lower cod production. cod feed on other small fish species increased availability of food has led to an increase in cod populations and weight of individual fish. Aquaculture helps sustain the production of fish species against overfishing while in the case of wild fishing overfishing may lead to extinction of species.

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Mackinson , S. Marzloff ,M. Shannon, L. J., Shin, Y., & Tam, J. (2011). Impacts of Fishing Low–Trophic Level Species on Marine Ecosystems Science DOI: 10.1126/science.12093953. Frank, K., Petrie, B., Fisher, J., & Leggett ,W. (2011). Transient dynamics of an altered large marine ecosystem Nature DOI:10.1038/nature102854. MFR Paper 1014, from Marine Fisheries Review, Vol. 35.No. 11 , November. 1973. Copies of this paper. in limited numbers. are available from 0 83, Technical Information On Division Environmental Science Information Center.

NOAA, Washington , D.C. 20235.5. Web 2nd April 2013 www.canadahistory.com/sections/eras/eras.html6. The fish site featured articles : US Ground fish Market Report, web 13th April 2010 http://www.thefishsite.com/articles/878/us-groundfish-market-report