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Transportation costs increase with shipment distance, and for remote
markets, the fish production and shipment costs can outweigh the sale
revenues.
Maximum Roundtrip Distance is the distance to and from a retail location for which the sale revenue is equal to the sum of production and transportation costs. In fact, if a fish producer delivers fish to a market located exactly one half of the Maximum Roundtrip Distance away, the producer breaks even. If the producer delivers to a more remote market, then her/his profits are negative. |
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FishTran Highlights: |
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Information Required to Estimate the Maximum Roundtrip Distance:
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Estimation Procedure: Maximum Round Trip Distance is based on sale price and production and transportation costs. It is equal to the ratio of sale return (profit, in dollar) and per mile (or per kilometer) transportation cost: |
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| In turn, sale return (profit) is estimated as the difference between sale price and production cost: |
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