A Comprehensive Look at Cod Fisheries Worldwide - Essay Example

Question 2
Whitaker (2) says that in June 1973 cod blocks were going for 65 cents per pound, compared to around 22 cents in the same period in 1969. A graph has been provided that shows the worldwide landings and wholesale prices of cod blocks between 1960 and 1972, and the price is clearly 21 cents in 1968 (Whitaker 3). In April 2010, The Fish Site published an article titled US Groundfish Market Report. In the article, a graph was included that showed wholesale prices for cod and other groundfish. According to the graph, the wholesale price of cod blocks in 2008 was US$ 2.50 per pound (US Groundfish Market Report 1).

Question 3
Supply (in metric tons) Price 1968 4.2 million 21 cents 2008 1.6 million $2.50 The conclusions I can draw from this table is that between 1968 and 2008, supply has been reducing, demand has remained high, and prices have continued to rise.

Question 4
Generally, cod tonnage has been in steady decline (with the exception of a few years) between 1968 and 2008. This is how the demand curve also looks like, showing steady reduction and few increments. This is based on the sources provided.

Question 5
The demand curve for cod shifted upwards from 1969-1972, compared to the years between 1960 and 1968. Between 1960 and 1968, the demand curve was steady, but from 1969 it shifted upwards, marked by a sharp decline in the amount of cod caught (Whitaker 3).

Question 6
According to Whitaker (1), the worldwide cod catch in 1968 was about 4.2 million metric tons, and the Newfoundland fishing grounds contributed 600,000 metric tons. This forms 14% of the global catch. In 1992, production from Newfoundland collapsed to almost zero

Question 7
Between 1948 and 1968, Canadian cod production was not efficient. The market failure, in this case, is an inability to plan for the future by using existing stocks efficiently. 

Question 8
The Canadian government banned cod fishing in its Northeast fishing beds in 1993. The Canadian government did not follow an optimal policy in the regulation of the fishing beds, and that is why cod tonnage declined sharply and rapidly from 1968. Politics greatly affected the government’s decisions because it took almost 20 years for the ban to be effected (Waters 1). Without political interference it could have been done earlier since the issue at hand was very critical.

Question 9
Although the ban came late, it was nonetheless effective. Slow cod recovery was brought about by a depression in the population of forage fish (necessitated by a virtual decimation of zooplanktons) and the ban. In the article, evidence is presented that there were sufficient haddock, cod, and redfish to lay enough eggs and larvae to support recovery, therefore the ecosystem was “lucky” in a way (Waters 1).  

Question 10
In my opinion, and based on research sources, the events in the cod market during the period 1968-2008 are expected to open up new markets for other fish species that were previously playing second fiddle to cod. The reality is that this time period has been punctuated by two things: a steady decline and worrying fluctuation in the tonnage of cod worldwide, and a rapid increase in the prices of cod products (particularly cod blocks). Since it has been established that reliance on cod alone will not sustain existing demand, the alternative has been to push people towards embracing other fish species. These alternatives include pollock and haddock, which have deputized ably during the decades of uncertainty that have characterized the cod market (Baker 33). The result is that pollock and haddock prices have increased significantly, thus creating new markets that are stable enough to be relied on. Although people still consume cod, its prohibitive prices and rarity have combined to push other fish species up the ladder of availability and demand. In summary, events in the cod market have created thriving markets for other fish species, markets that have helped move the industry away from overreliance on cod.

Question 11
In the Scientific American, Waters (1) states that cod consume forage fishes. We are told how overfishing in Canada contributed to a massive decline in the tonnage of cod caught by fishermen. This led to a dwindling in the population of cod, and consequently a rapid increase in the number of forage fishes. At one point, forage fishes were so many that their primary prey (zooplankton) began declining rapidly, and the forage began to suffer. Larvae and cod eggs became part of their diet after a virtual decimation of zooplanktons. The number of forage fishes started reducing significantly, and this opened the door for cod to thrive again. They are reported to be responding very well to this change in their ecosystem, and their numbers have increased (Waters 3).

Question 12
Aquaculture acts as a supplement that addresses the demand for cod that cannot be met (Grant 28). Aquaculture is likely to trigger an increase in prices because of the way it is practiced (it is expensive and time-consuming compared to fish species that are caught only in the wild).