Rationalization: Derby Vs. Quota
After the 2005 season, the Alaskan crab industry transitioned from a derby-style season to a quota system. This transition is known as rationalization. Under the old derby style, a large number of crews competed with each other to catch crab during a restrictive time window. Under the new Individual Fishing Quota (IFQ) system, established owners have been given quotas which they can fill at a more relaxed pace. In theory, it is intended to be safer, which was the main rationale for the change in the fishing rules. The transition to the quota system was also expected to increase the value of crab, by limiting the market of available crab. An influx of foreign crab negated some of these gains during the 2006 season.
The rationalization process put many crews out of work as the owners of many small boats found their assigned quotas too small to meet operating expenses; during the first season run under the IFQ system, the fleet shrank from over 250 boats to around 89 mostly larger boats with high quotas.
Read more about this topic: Alaskan King Crab Fishing
Famous quotes containing the word quota:
“Some are petitioning the State to dissolve the Union, to disregard the requisitions of the President. Why do they not dissolve it themselves,—the union between themselves and the State,—and refuse to pay their quota into its treasury? Do not they stand in the same relation to the State that the State does to the Union? And have not the same reasons prevented the State from resisting the Union which have prevented them from resisting the State?”
—Henry David Thoreau (1817–1862)