Abstract for:The Impact of Fishermen’s Skill Stock on the Offshore Fishing Industry in Japan
Fishery companies in Japan face a difficult management environment. Fish resource is decreasing, and fish prices are lowering. Simultaneously, labor, fuel, and ship repair costs are increasing. These costs represent approximately 30% of their total expenditures. Therefore, fishery stakeholders believe they need to cut these costs to improve profits. The government of Japan also recognizes this situation. They permit to employ trainee crews from other countries. Trainees are not skillful so that their salary is cheaper than average local crews. It helps to improve fishery companies’ financial conditions. However, the effect of improvement is limited only in terms when the government permits and when enough numbers of trainee crews apply. Besides, the retiring local veteran crews are increasing. Being left addressed, fishery companies’ capacity typified by crews’ skill would deteriorate. The purpose of this study is to examine the effect of crew skill improvement on fishery companies’ profits and to provide managerial information for fishery industry and the government. This study shows there is a sound balance of trainees and regular crews can generate profits by sustaining fisher capacity. Also, a simulation result reveals that the government can more effectively help the fishery industry with a small change of trainee conditions.