A MULTIPLIER FOR COMPUTING
THE VALUE OF SHELLFISH
UNITED STATES
DEPARTMENT OF THE INTERIOR
Federal Water Pollution
Control Administration
NORTHEAST REGION
NEW ENGLAND BASINS OFFICE
NEEDHAM, MASSACHUSETTS
October 1969
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A MULTIPLIER FOR COMPUTING
THE VALUE OF SHELLFISH
by
Edward P.M. Wong
United States Department of the Interior
Federal Water Pollution Control Administration
New England Basins Office
Needham Heights, Massachusetts
October 1968
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TABLE OF 1FNIS
Page No .
O 7EC IVE
S
1
LV
VA
CVA
NCVA
C,
w
Lan dVa1ue . . . .
Vali. Added . . . . . . . .
Conimmity Value dded. .
N -Carnunity Value Mded.
C nn.inity Valt . . . . . .
Total. Value . . . . . . .
. . S S S
. . . . . 23
. 3
. . . . . . 3
. . . . . 3
. . . . . . . . . . 3
. S S S S S S S S S S S S S S S
SHELLFISH MULTIPLIER FOI VLAE . . .
DISWSSI( OFTABLE
SUM RY OF SHELLFISH MULTIPLIER .
APP DIX
8-9
B - CAMPLE OF S TX ISH P1 JC ION IN A Ctt41I ITf 10-14
C SHFTX.rISH TABLES FOR 19671968 VALUFS . . . . . . . 1519
DIS USSI . . . . .
RE [ TI HIP
S S S S
2
2
S S
S S
S S
S S S S S
U S S S S
S S S S S S
S S S S S S
. S . 4 5
S S 45
. . 46
. . . . 7
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O JLC IVE ND DG
The objective of this st*xly is to fi.nd a siirple rrethod for determining
the econanic value of a caTu unibJ S cwtercial shellfish production or
of its potential. resource--its supply of available shellfish in the
natural environirertt.
Grateful ackna4ledgen nt is extended to r essrs. A. Russell Ceurve].s,
Director of the Newburyport Shellfish TreatlTent Plant, Massadiusetts
DepartlTent of Natural Resources; Dana Wallace, Resource Scientist, Maine
Departitent of Sea and Shore Fisheries; Robert Can bell, flarine Biologist,
Northeast Marine Health Sciences Laboratory, U.S. Public Health Service;
and Frederick Siino, Chief Sanitarian, Rhode Island DepartTent of Public
Health, for their assistance, interest, and encourag tent in the developtent
of a Shellfish Multiplier.
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DIS .USSICV
If the value of the shellfish areas and the e anic benefits resulting
fran the production of the shellfish passing through the carur rcial process
were known, the protection of the local shellfish resources and an assessn nt
of the losses to the cxmnunity that is imable to utilize this resource can
be determined.
When seeking the econanic benefits, it is necessary to have a series
of values denoting the worth of the shellfish during the carrrercial process
through whidi they are utilized. Initia.Uy, all harvested shellfish landed
in a local cxminunity carry a Landed Value (LV), a price that is paid directly
to the fisherman.* It is. i.u derstood that this is only a portion of the moans
attributed to the cceiiauiity; other accrued values of the shellfish are also
a significant part of the eocncinic oantribution made by the resource. A
further atteirpt, therefore, is made to sha z the ancunt of n ey generated in
and outside of the airrnunity fran the shellfish. In general, any gains
credited to the value of the shellfish beyond the Landed Value bebzeen the
wholesaler and ocns r r retailer, regardless of location, may be ocnsiclered
here as the Value Added (VA). The Value Added to the shellfish must be
defined nore closely since the shellfish may or may not be ocnsunecl in the
sane xnmunity fran which they were harvested.
Further definition of the Value ! ed would lead to a division into
smaller ccepcnent parts. The Value Ad d is orirηosed of certain values
which may accrue to the shellfish when sold to retail nsuners outside of
the crnrunity, ocnsurnsrs within the axi nunity, or in a t ination of both.
*A fisherman in SCK e states may act as a shipper.
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Retail sales outside of the shellfish producing cxiruiunity can be regarded as
Non-Community Value Added (NCVA), whereas, the prices of the shellfish
within the harvesting cximlnity, exclusive of the landed unt, r xinprise the
Community Value Added (CVA). In assessing the generated value of the
shellfish when sold through wholesale and retail outlets in the sane canmunity
where the shellfish were harvested, o nditions should be a nsidered:
1) the incciie resulting directly fran the harvesting, arid 2) the retail
sale of the shellfish for different uses in the iunity. This value is
then known as the Community Value (CV), a summation made up by adding the
Landed Value (LV) to one or nore of the Canmunity Values 2½dded (CS/A)
In the final analysis, to evaluate the ecx,nanic importance of the
shellfish production or resource of the canmunity, involving both shellfish
sold locally and outside of the canniunity, add the Canniunity Value (CV) and
one or nore Non-CaTlnulnity Values Mded (NCVA) to obtain a representation
called Total Value (TV).
-3.-
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TABlES
The She lifish Multiplier (SI) is an enpirica]. value to assist in
neasuring the values of a cuui rcial shellfish production of a cxiTlmunity,
or the value ir d to the shellfish accrued within or outside of the cxzwrninity.
It must be noted that eath calculated multiplier would vary with tine, place
and cthanging prices, and that ar r cxmnwiity analysis must be made within
this franewor]c; in other words, the multiplier is going to be different in
every situation. The shellfish multiplier is obtained fran the foll ?iing
relationship:
ISH MULTIPLIER = retail value (price) per unit
wholesale value (price)
no. shellfish in wholesale f n t
no. shellfish in retail unit price 0 re uzu
SHELLFISH !4LTIPLIER = __________________________________________
price of wholesale
In arriving at the shellfish multiplier forlTulla, it is necessary to
establish four basic sets of criteria sh ing hc i the shellfish are sold,
distributed, treated, muved or used by the shipper and the final stmers.
(Appendix C). These four groups are:
Median Nunber of Shellfish per Wholesale . . = Value Nw
(Table 1, Column F)
Wholesale Price per Wholesale . . . . . . = Value
(Table 1, Column G)
Median Nimber of Shellfish per Consun r Unit = Value Nr
(Table 2, Column F)
Consuner Price per Consuner Unit . . . . . . = Value- r
(Table 2, Column G)
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The values in coluitu s 1F (factor ) and 2-F (factor Nr) generally
r ain the sama, while the values in coltznn lG (factor P ) and 2-G (factor r)
would sh the prices reflected in the market. F cent market prices,
h qever, may be substituted in factors P r together with appropriate
explanations.
To al1c for value substitution fran the tables, the shellfish multiplier
can n z be expressed as follc s:
l WxPr
Nr P
SP rJPISH MULTIPLTER = ________ = x
Nr
Table 1. This table sh s hc the shellfish, as packed by weight
or volt e, are distributed in bulk fon t at the wholesale market level, and
the cost of the shellfish at that location and level. This cost reflects
the prices of the individual shippers or that of the diggers.
Table 2. This table sh s the distribution and final cost of the shell-
fish in cons i r units fran the original bulk packing. The manner of
distribution is expressed by the way it was sold, served, processed or used
at the retail level. The costs of the it ns in Table 2 must relate directly
to the sa shellfish under Table 1.
The tables shcM the prevailing market prices of fresh or frozen shellfish
airu nly sold in the Neiz 1 igland markets, unless otherwise indicated. They
include all edible species of oysters, clama or mussels, either shucked or
in the shell:
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Identity of shellfish under discussion
Soft-shell clam t ra arenaria
Northern quahog Marcenaria irercenaria
Eastern oyster Crassostrea virginica
Blue missels rtilus edulis
Surf clam Spisula solidissiina
The bushel neasurenent used in the tables is based on the U.S.
Standard bushel, whicth has a capacity of 2,150 cubic incthes, or 32 dry
neasure quarts. Average weights shown in the tables for certain shellfish
are market shipping weights used in the N England States. They were
obtained by actual unts on lots representative of market sanples at the
shippers, arid fran tables contained in the Fishery Statistics of the U.S.
1964 Statistical Digest No. 58, Departirent of the Interior, Fish and Wildlife
Service, Bureau of C LLercial Fisheries. Since it was iii ossib1e to obtain
all of the shellfish per bushel figures by actual counts under field
conditions, it was necessary, in saie cases, to esth ate their n rbers by
referring to the shellfish tables in the Marine Fisheries Series, 1 and 2 -
The Soft-Shelled Clam Fishery of Massathusetts and The Quahaug Fishery of
1assachusetts by David L. Belding, M.D.
It was generally found that the loss of shellfish due to breakage was
about five percent for soft-shelled clans and three percent for oysters
and hard-shelled clams. The loss due to spoilage of shucked shellfish
was difficult to determine. However, industry maibers indicated that
spoilage may an unt to about five percent, or one pound per every bienty
pounds of neats. These loses can be deducted in the final calculations fran
eacth catponent value; ie, LV, VA, CVA, NCS1A, CV and TV.
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Suiinary of Shellfish Multiplier The shellfish miltiplier is designed
to assist those interested in arriving at a nethod for estii ating and
predicting the ccx inity value of the shellfish production or its resouros.
2 lso, the nniltiplier can be used to estimate local and non-local values added
that were accrued to the shellfish after retail sale. The surtination of all
the values addpd (IV) would give a potentially generated eccnanic value of
the shellfish production.
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Appendix A - r4athematical Derivations of Equations
Shellfish Multiplier - Ilie s1 ellfish rnultip]4er (SM) is the ratio of
the final nsi er retail value to the initial rnaztet wholesale value of the
shellfish with respect to the Inanj er in whith the shellfish were sold and used.
SM - retail value (price) per unit
- wholesale value (price)
SM=
no.
shelifith
in
wholesale
no.
shellfish
in
retail
unit
x price of retail unit
IE UATION ii
price of wholesale
Landed Value - The landed value (LV) is the price the shipper or dealer
pays to the fisherman. It may be cxnsidered the initial wholesale value.
= ( rn ther of \ (wholesale price\_ lesale value
\wholesai.e urLj,ts) \ per unit
IFJ UATION 21
CaTbining the shellfish multiplier (Equation 1) and the landed value
relationships (Equations 1 and 2) gives:
Retail value = (LV) (SM)
I U TION 1
Retail Value Added - The retail value 3r d (VA) is the difference
between the retail value (Equation 3) and the wholesale value (Equation 2).
Value added can be either local or non-local.
VA = Retail value - Wholesale vah
VA=LV (SM) - V
VA = LV (SM-l)
ID UATIa J 41
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The shellfish may be sold in any nunber of waysfried, steaned, strips,
in the shell and so cm. Each neans of its final retail use and value is
associated with an aucunt, in per nt (in), of the initial harvest or
production. The retail value 1 d (VA) associated with the anowkt of each
neans of retail use may be expressed as:
VA = (LV) (in) (SMml) It .3ATI0ti 5
Surrmatian ( ) of the various retail use of the shellfish gives the
follodng relationship:
EVA = VA = IV [ (in) (SMm1)] I E U2 TION 61
(VA) henceforth, may be expressed as (CVA) for values added within the
onnunziity and (NCVA) for value . ar1rir d outside of the c m nity.
Ca mm.inity Value - The mmity value (CV) is the in e to the local
ccmnunity resulting directly fr an the sale of the shellfish zider different
uses. It is ccxtpcsed of the landed value (LV) (Equation 2) and one or nore
tn mity retail values dd d (CVA) (Equation 6 where n c cc innmity sales).
CV = LV + + + CVA 3 .. . . .CVA
CV = LV + LV [ (c) (SM 0 -l ] 1 + LV [ E(c) (SM j-l ] 2 I t32 TI0N 71
tal Value - The total vaule (TV) is the final value of
the cain rcial production of the shellfish industry. It is o osed of one
cxxnnuriity value (CV) (Equation 7) plus one or nore of the non- cxxrmnunity retail
values added (NCVA) (Equation 6 where ir n for non-ocmnunity sales).
I V CV + NCVA] + + NCVA 3 .. . . .NCVA,
= CV + LV (SN ]3J + LV [ t (n) (SM -l J 2 lI u7 TIoN 8J
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APPU DIX
Appendix B - Exai ple of Shellfish Production in a CciTrrunity
What is the c uercial value of the shellfish production
and its generated values for the following intunity?
A Maine nninity has ten x uitercially licensed fishenien who rely
on shellfish harvesting for a living; local sports harvesting is not
included. These harvesters are not involved as shippers. The estuary
adjacent to this ccruninity is known to support the growth of soft-shelled
clams, but is not suitable for other shellfish. Each of the ten diggers
is harvesting 1½-to-2½ inch claire at the rate of four bushels per day for
a six-day working week. The shellfish are sold locally to intra and interstate
shellfish shippers. The diggers charge $7.77 per bushel when delivered to
the shipper. The average weight of each bushel is sixty-five pounds. The
production rate of shellfish frat the mn nity for that period in a
single day is 40 bushels, or 240 bushels for a six-day week. I e rds show
that bienty-five percxmt of the claire are sold locally as fried cla ire and
that another quarter is also sold locally as steamars. The remaining fifty
percent is shipped to another state and sold as shells tock in the retail
markets.
10--
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- Shellfish 1ultiplier(Srv1)for fried clans
II II I steant rs
shelistock
Landed Value (LV)
CaruTainity Value 2\dded(CVA)
Non-carTruinity Value Added (NCW )
Caiminity Value (cv)
Total Value (TV)
1IZ\VE - Soft-shelled clam beds in estuaxy, no sports fishing
10 hatvesters at 4 busheLs per day
240 bushels per week for six-day work week
25 percent of shellfish sold locally as fried cl r
25 percEnt of shellfish sold locally as stealers
50 percent of shellfish sold non-locally as shelistock
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From tthles
ibu
ipt
serving
1 pt
1 bu
ipt
1 serving
1 pt
= $7.77
= $1.25
= $1.20
= $0.38
= 1850
= 26
= 13
= 27
no. in wholesale
no. in retail unit
x price of retail unit
SM (Shellfish Multiplier) =
SOLtY2ION :
pri of wholesale
A. Conputing SM for fried clans, steaners and shelistock
SM =
xP
Nr
pw
SM
SM =
1850 1.25
7.77
1850 x 1.20
7.77
1850 8
27
7.77
= 9.1 fried clans
= 21.0 ste srs
3.2 shelistock
Values
P
soft-shelled clans (Ilaine
Rcsouroe)
r
fried clans, per unit
r
stearrer clams, per unit
1
r
shelistock, per unit
N
soft-shelled clams (ilaine
P souroe)
r
fried clans
N .
stean r clams, per wilt
Nr
shelistock, per unit
sr =
12
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B. Ccirputh g values for LV, CVA, NCVA, CV, I ND TV*
I n ther of \ / wi-iolesaie __________
a. Lanoed Value LV 9 shellfish units) I pric per unit) ixjup Tioii 1J
LV = (240) ($7.77)
LV = $1864
b. Ccmnunity Value Added CVA
CVAf = LV [ E(Tn) (Sr _1)] I U1 TION 6 ]
CVAf = 1864 [ .25(9.11 J
CVAf = 1864 [ 258.ljI
CYAf = 1864 [ 2.01]
CVAf = $3728 fried clans (f)
CVA 6 = 1864 E25(2l1
CVA S = 1864 [ 25(2o
cVA = 1864
= $9320 ste iers Cs)
NCVA t = 1864 [ .5o(3.21
NCVA 5 t = 1864 [ 502.2
1864 [ 1.10]
= $2050 shelistock (st)
* pp 1c1jx A for equation derivations
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c. Comunity Value CV
CV = Landed Value LV + ConTariity Values Mded 0Th\
CV = LV + CVAf + CV It1 ?UATIoiI I
CV = 1864 + 3728 + 9320
CV = $14,910 generated local comnunity value
for fried c1an and steaners
d. Total Value IV
= Cc Tminity Value CV + Non-catunx ity Values P dded NCV2\
TV = CV + NCVA 5 t I T7 Q 81
T.T = 14,910 + 2050
IV = $16,960 Total value. . . of shellfish production (one week)
including generated values within and outside
the cxn nunity.
Sumary listing of SM, LV, 0/A, NCV7 , CV and TV
1. The SM shellfish sold in c iru.inity as fried clans . . . . . . . . . 9.1
2. The SM shellfish sold in wiunity as steaners . . . . . . . . . . .21.0
3. The SM shellfish sold outside of carm mity as shelistock . . . . . . 3.2
4. The IN shellfish production to local shippers eek
(100%).... $1864
5. The CVAf shellfish sold locally as fried clanw ieek
(25%) ............$3728
6. The CVA 5 shellfish sold locally as stearrers/ ieek
(25%) ............$9320
7. The NCVASt shellfish sold outside of oxinunityA.zeek . . . . . . . $2050
8. The CV of the shellfish sold 1oca1ly %zeek
9. The IV of the shellfish production and its generated values,Sieek
(100%) . . . . $16,960
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