Inaccurate economic performance assessment from flawed crew remuneration data
Definition
Crew remuneration data from ledgers underestimates true financial contributions to fishers' livelihoods and misrepresents overall fishery economic performance. Since crew shares correlate directly with gross profits, underreported data leads to poor decisions on fishery sustainability and investment. Accurate formula-based methods reveal higher real values, highlighting the error in ledger reliance.
Key Findings
- Financial Impact: Distorted fishery assessments (no specific $; systemic underestimation)
- Frequency: Ongoing in fisheries using crew-share systems
- Root Cause: Failure to use fishers' own indirect calculation formulas, ignoring owner labor and informal transactions in financial reporting.
Why This Matters
This pain point represents a significant opportunity for B2B solutions targeting Fisheries.
Affected Stakeholders
fishery managers, policymakers, economists, vessel owners
Deep Analysis (Premium)
Financial Impact
$100K-$1M annually from negotiating unfavorable contracts based on artificially low cost data; risk of reputational damage if crews later claim underpayment β’ $20K-$150K annually from supply chain risk: product recalls or brand damage if suppliers are exposed for unfair labor practices; loss of eco-certified feed premium if audits reveal wage underreporting β’ $50K-$250K annually from audit inefficiency, false certifications creating liability, and loss of certification contracts when audits fail post-certification; potential legal exposure for certifying exploitative labor practices
Current Workarounds
Manual crew-share formula recalculations in Excel; cross-referencing ledger entries with catch records and sales data; informal phone/email coordination with vessel captains to reconcile numbers β’ Manual interviews with crew; requests for settlement documents and catch records; side-by-side comparison of ledger wages vs. formula-calculated shares; written notes and spreadsheets compiled for audit reports β’ Manual requests for crew remuneration data from fleet operators; spot-check comparisons against historical catch records; ad-hoc Excel models to reverse-engineer true crew costs from fragmentary data
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
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