Fishing is a primary industry. A large amount of fish is sold to canning factories. Many fishermen own their own boats.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2013). The mark or mark type is shown in brackets.

1. [3] the fisherman is concerned with producing food i.e. fish
2. to send to the consumer/fish processor/canning factory
3. using natural resources from the earth
4. the fisherman is in the first stage of production
5. and concerned with renewable resources
6. so is a non-exhaustive primary industry
7. any other relevant point
8. [3] obtaining loans/overdrafts (finance = 0 marks)
9. using bank means of payment (or an example) to pay bills
10. saving surplus cash to earn interest
11. depositing into a current account
12. carrying out financial transactions using Internet banking
13. seeking financial advice from the bank
14. any other relevant point
15. [4] to reduce risk especially of financial loss
16. the fisherman needs to insure his boat and any premises against fire and theft
17. he will be able to claim compensation for the loss
18. the fisherman may have employees – required by law to take out employer's liability insurance to cover him against claims made by employees because of his negligence.
19. insurance helps to build business confidence – the fisherman may have invested
20. a lot of his own money in the business – he would lose this money if a disaster occurred
21. and he was not insured
22. any other relevant point
23. [6] Level 2 (4-6 marks)
24. Has discussed how important warehousing is to the fishing industry and has given a reasoned opinion.
25. Warehousing is unlikely to be important for individual fishermen. They might have storage on the fishing boats to hold the catch while they continue to fish. They may have a small amount of storage ashore to store machinery, nets and other equipment. Fish is a perishable commodity and would be sold in fish markets directly to consumers or to processors of fish in large quantities.
26. On the other hand a canning factory or fish processing company would need warehousing, particularly cold storage, to preserve the fish until it can be processed. This would ensure continuous production. A canning factory would also need warehousing to store the canned fish awaiting sale or awaiting transport. In some countries canned fish is an important export and needs to be stored awaiting export or loading into containers for transport.
27. Warehousing is important to the fishing industry as a whole because it offers protection against theft, damage or deterioration. It will help to even out seasonal variations in the sizes of catch landed so that the fish processor can operate all the year round. It will ensure supplies when needed and help to prevent fluctuations in the price of canned fish. Warehousing is, therefore, very important for some parts of the fishing industry but not for everyone concerned with the fishing industry.
28. Level 1 (1-3 marks)
29. Has commented on the importance of warehousing to the fishing industry.
30. A fisherman will need storage for his nets. He will not store his fish. He needs to sell it as quickly as possible. A canning factory will need to store fish. It will also need to store canned fish. Warehousing protects products against theft and damage.
31. [4] the canning factory might have its own website giving information about the products it sells and contact details
32. the canning factory may receive enquiries from potential customers by telephone or email
33. the canning factory may keep in touch with potential buyers/retailers/wholesalers/exporter agents by telephone or email
34. problems about consignments of canned fish may be solved by discussion on the telephone
35. the canning factory is unlikely to meet buyers face to face but some may come to the factory and be shown around
36. documents involved with the sale of canned fish may be sent by letter post
37. advertising material/price lists might be sent by email/letter post
38. any other relevant point