Press release July 19, 2002: Economists report on cost-effectiveness Of Columbia River Basin fish hatcheries

Economists report on cost-effectiveness Of Columbia River Basin fish hatcheries

July 19, 2002

YAKIMA ? As a first step toward developing a cost-effectiveness review process for proposals to build new fish hatcheries in the Columbia River Basin, a panel of independent economists reported to the Council this week in Yakima on the costs of rearing and releasing fish, based on a review of eight hatcheries. According to the report, the cost of rearing fish ranges from a low of about eight cents per fish to a high of about $2.60 per fish, but that the cost per surviving adult, particularly those that are caught by fishers, is vastly higher. That is largely because many more fish are released from hatcheries than return as adults.

In the report, ?Artificial Production Review ? Economics Analysis, Phase 1?, economists recommended that the Council fund a second phase of the study to develop a larger database of cost and fish production information.

The Independent Economic Analysis Board, which is headed by Daniel Huppert of the University of Washington, studied a sample of hatcheries ? there are more than 100 in the Columbia River Basin ? that differed in the type of facility and in their geography. The eight facilities ranged from the mouth of the Columbia River, near Astoria, north to the upper reaches of salmon and steelhead distribution on the Columbia near Leavenworth, Washington, and east to the upper Salmon River of Idaho. Annual costs for the hatcheries ranged from $527,000 at the Priest Rapids hatchery in Washington to $5.25 million for the Nez Perce Tribal Hatchery in Idaho. The Nez Perce hatchery costs are estimates, as the facility is under construction.

Cost-effectiveness information could help decisionmakers analyze fish harvest regulations as well the cost-effectiveness of hatcheries and their specific purposes, Huppert told the Council. The economists believe that an analytical approach, if expanded with a broader hatchery cost database than currently is available, could be used to screen new artificial production proposals as long as the goals for each new facility are clear and quantifiable. Huppert said the panel also could work on developing a separate type of analysis to evaluate the potential economic benefits of fish hatcheries.

Currently, the Council is conducting an evaluation of hatcheries in the Columbia River Basin, in collaboration with state and federal fish and wildlife agencies and Indian tribes. Improving the database of fish production and costs is one goal of that effort.

While the decision to build a new hatchery does not rest solely on economics, a cost-effectiveness analysis of a new hatchery compared to existing facilities and their known costs could help the Council and other decisionmakers select projects that provide biological benefits at the lowest cost to the public, the economists reported. But other criteria are equally if not more important than cost-effectiveness. A hatchery may be needed to help recover an endangered or threatened species, or to provide fish for a particular fishery.

?No single number or analysis will provide a comprehensive review of artificial production projects,? the panel reported. ?However, to the extent that hatcheries have in common the production of fish, it should be possible to make useful comparisons across artificial production projects.?

The Council is an agency of the states of Idaho, Montana, Oregon and Washington and is directed by the Northwest Power Act of 1980 to prepare a program to protect, mitigate and enhance fish and wildlife of the Columbia River Basin affected by hydropower dams while also assuring the region an adequate, efficient, economical and reliable power supply.

Contact: John Harrison, Information Officer, 503-222-5161,

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	Economists report on cost-effectiveness Of Columbia River Basin fish hatcheries July 19, 2002 YAKIMA ? As a first step toward developing a cost-effectiveness review process for proposals to build new fish hatcheries in the Columbia River Basin, a panel of independent economists reported to the Council this week in Yakima on the costs of rearing and releasing fish, based on a review of eight hatcheries. According to the report, the cost of rearing fish ranges from a low of about eight cents per fish to a high of about $2.60 per fish, but that the cost per surviving adult, particularly those that are caught by fishers, is vastly higher. That is largely because many more fish are released from hatcheries than return as adults. In the report, ?Artificial Production Review ? Economics Analysis, Phase 1?, economists recommended that the Council fund a second phase of the study to develop a larger database of cost and fish production information. The Independent Economic Analysis Board, which is headed by Daniel Huppert of the University of Washington, studied a sample of hatcheries ? there are more than 100 in the Columbia River Basin ? that differed in the type of facility and in their geography. The eight facilities ranged from the mouth of the Columbia River, near Astoria, north to the upper reaches of salmon and steelhead distribution on the Columbia near Leavenworth, Washington, and east to the upper Salmon River of Idaho. Annual costs for the hatcheries ranged from $527,000 at the Priest Rapids hatchery in Washington to $5.25 million for the Nez Perce Tribal Hatchery in Idaho. The Nez Perce hatchery costs are estimates, as the facility is under construction. Cost-effectiveness information could help decisionmakers analyze fish harvest regulations as well the cost-effectiveness of hatcheries and their specific purposes, Huppert told the Council. The economists believe that an analytical approach, if expanded with a broader hatchery cost database than currently is available, could be used to screen new artificial production proposals as long as the goals for each new facility are clear and quantifiable. Huppert said the panel also could work on developing a separate type of analysis to evaluate the potential economic benefits of fish hatcheries. Currently, the Council is conducting an evaluation of hatcheries in the Columbia River Basin, in collaboration with state and federal fish and wildlife agencies and Indian tribes. Improving the database of fish production and costs is one goal of that effort. While the decision to build a new hatchery does not rest solely on economics, a cost-effectiveness analysis of a new hatchery compared to existing facilities and their known costs could help the Council and other decisionmakers select projects that provide biological benefits at the lowest cost to the public, the economists reported. But other criteria are equally if not more important than cost-effectiveness. A hatchery may be needed to help recover an endangered or threatened species, or to provide fish for a particular fishery. ?No single number or analysis will provide a comprehensive review of artificial production projects,? the panel reported. ?However, to the extent that hatcheries have in common the production of fish, it should be possible to make useful comparisons across artificial production projects.? The Council is an agency of the states of Idaho, Montana, Oregon and Washington and is directed by the Northwest Power Act of 1980 to prepare a program to protect, mitigate and enhance fish and wildlife of the Columbia River Basin affected by hydropower dams while also assuring the region an adequate, efficient, economical and reliable power supply. Contact: John Harrison, Information Officer, 503-222-5161, ^ top