Stimulating investment in pearl farming in ... - World Fish Center

Table 8. Modifications to the biological parameters of the Friedman model on thebasis of improved data.Parameter Original RevisionSpat per collector 6 4Spat survival through intermediate grow-out 0.8 0.7Juvenile survival in grow-out to seeding size 0.95 0.9Rejection rate of virgin shell at first seeding 0.12 0.1Pearl retention by virgin 0.7 0.6Rejection rate of shell at subsequent seedings 0.4 0.4Pearl retention at subsequent seedings 0.85 0.8Table 9. Costs incorporated into the budget for pearl farming in Solomon Islands.Unit cost refers to the cost at start-up, and Inflation rate indicates the annual rate ofincrease of these prices. Annual cost indicates the repair/servicing charge, or whetherthe item is an ongoing annual cost. Replacement time is the expected lifespan of theitem.ItemUnit cost,year 1(AUD)InflationrateAnnualcostReplacementtimeLonglines (spat) 240 ea 6% 5% 5 yrsSpat collectors 1.5 ea 6% 5% 5yrsLonglines (shell) 270 ea 6% 5% 5 yrsChaplets 2.7 ea 6% 5% AnnualIntermediate culture 18 ea 6% 5% 10 yrFuel 8000 10% YesMiscellaneous 8000 6% YesHousing 150,000 6% 5% N/ADive equipment 15,000 6% 10% 6 yrsBoats and engines 20,000 6% 10% 4 yrsLabourManager 60,000 ea 6% YesForeman 10,000 ea 6% YesLabourer 2,500 ea 6% Yes 1 per 10longlinesUsing these parameters, we used a simple spreadsheet programme to follow the costsof operating the farm over 12 years, as stock numbers and pearl production stabilised.Costs are summarised in Table 9, and the opening position is that taken by Friedmanof 5000 spat collectors deployed. By setting the annual intake of spat, this allows allother calculations to be undertaken, since the number of each item in table 9 requiredis determined by the number of spat and oysters in culture. Choice of a pearl value iscritical to the profitability or otherwise of the enterprise. Friedman used values of $60average price for the first pearl, $100 for the second and $150 for the third and fourth(all AUD). Given the valuation of the first batches of pearls from Nusa Tupe, andparticularly the proportion of worthless pearls, these now seem overly optimistic. We24