Original Scope
Abstract The
The Juneau Economic Development Council was the lead organization for the economic scoping of multiple fish waste products including fishmeal, bone meal, fish oil and fish hydrolysate. The cost structure from resource input to market will be determined. Viability of mixing fish waste with wood byproducts (sawdust) will also be explored. The project will benefit southeast Alaskan salmon fishermen; processors, the business community and governmental agencies by providing solid economic information for value added salmon waste products. The two year (2003 and 2004) project was completed with $175,000 and partnerships with the public and private sectors. Also during the course of the project over $8 million was invested by the private sector in by-product projects in the region.
Cooperating Entities: In
the preparation of the project description the following companies and
organizations were contacted for input. Industry steering committee: Alaskan Brewing Company, Armstrong-Keta Inc., Alaska
Seafood Company, DIPAC, Douglas Indian Association, McDowell
Group, Norquest Seafoods Inc., Northern Keta , Alaska Protein Recovery, Seley
Corporation, Taku Smokeries, Trident Sea Foods, Southeast Alaska Fisherman's
Alliance, Wards Cove Packing Co.
Research
support group: Fishery Industrial Technology Center
(FITC), National Marine Fisheries Service (NMFS), Scott Smiley, Director,
University of Alaska Fairbanks Fishery Industrial Technology Center, Kodiak,
AK., Jerry Babbitt, Director, NMFS Utilization Research, Kodiak, AK. 99615.
Agency
Cooperators: Department of
Environmental Conservation, Ketchikan Gateway Borough
Project
Contact: Juneau
Economic Development Council
Duration: Summer
of 2002 through the fall of 2004.
Geographic Area: The project will focus on management and utilization
of fish processing wastes at various locations in Southeast Alaska. The
population served will be fisherman, processors and businesses in Southeast
Alaska. The research, assessment,
and development of appropriate utilization technologies will be conducted in
part at the Fishery Industrial Technology Center, Kodiak, Alaska.
INTRODUCTION
Many individual fishermen, processing workers and others
in fishery support businesses will lose their livelihoods in the next few years
if aggressive action is not taken immediately to ensure Alaskan fishery
industries remain competitive and profitable. The huge production worldwide of
farmed salmon has permanently altered the economics of the salmon fisheries,
very noticeably so in Southeast Alaska. Prices for cohos have dropped so low
that it is difficult for most trollers to operate at a profit. The availability of year-round
inexpensive, fresh salmon has put further downward pressure on already
declining consumption and prices for canned salmon as well as fresh and frozen
markets for net-caught chum, pink and sockeye salmon. The viability of so many processors is threatened such that
many fishermen are facing the daunting prospect of having no buyers at all this
coming season. Pink and chum flesh has become a low-value protein commodity
that must compete with other protein on world markets. The change in the marketplace, where
Alaskans used to be able to treat all species of salmon as a premium product
commanding a premium price, to a global market where wild salmon face stiff
competition with farmed salmon is undoubtedly permanent.
One of the competitive advantages farmed salmon enjoy is
that 100% of the fish are utilized.
Meal companies own many of the largest salmon farms; most of the rest
sell all their waste to meal plants to derive value from the entire fish. In contrast, a significant percentage
of each wild fish caught in Alaska is thrown away in processing. Besides representing a potential income
opportunity, the salmon waste presents a discharge challenge to
processors. The federal government
has been pursuing enforcement on several major processors in Southeast Alaska
with an intensity that may increase over time. The issue of what to do with salmon waste products is a huge
one looming on top of the depressed salmon prices.
A bright spot for the industry is the growing market for
salmon roe. While roe now represent the main value for both chums and pinks,
that value is still capable of supporting only the current depressed prices in
our traditional commercial fisheries.
There is substantial additional potential value in the harvest of very
mature fish with high roe content in terminal fishing areas, such as the late
fall pink terminal fisheries held last year in Southern Southeast Alaska or the
terminal fisheries at hatcheries.
The roe yield can rise significantly in these terminal areas as the fish
mature for spawning; the eggs become larger and their quality increases at the
same time. Implications for raising the value of the harvest are enormous. The flesh of these mature fish is of
little value for traditional markets. Alaska wanton waste laws prohibit the
dumping of the carcasses of these fish. Extracting the roe value from these
fish without violating wanton waste laws is the crux of this problem.
Addressing the issue of fish waste needs to be a top
priority of the salmon industry in Alaska. Currently, no ready buyer of carcasses for fishmeal exists
in Southeast Alaska. An alternative
process of hydrolyzing salmon carcasses has demonstrated great potential despite
problems in its implementation in Southeast Alaska over the past two years.
Market development, transportation costs, and the way in which fishing vessels
deliver their catches are all variables that pertain to this issue. A
comprehensive study of the problem and the range of potential solutions are the
focus of this proposal. We propose a scoping study to investigate the economic
viability of several waste products including fishmeal, bone meal, fish oil and
fish hydrolysate.
It is important that we
strive to fully utilize our fishery resources, but the driving force is
economics. The major components of
fish wastes are protein, oil, and ash (bone). Production of fishmeal is one way to utilize fish processing
wastes since protein is the major component of the wastes. Fishmeal is big business. Last year, total world production of
fishmeal was approximately 6.2 mmt (million metric tons) that was produced mainly
from direct fisheries, such as anchovy, menhaden, etc. Alaska's production of fishmeal was
57,000 mt (7 shore-side plants- 41,000 mt, 3 motherships- 4,000 mt, and 7
factory trawlers- 12,000 mt), less than 1% of the total world production.
Alaska's fishmeal producers
are using conventional fishmeal technology developed for producing fishmeal
from whole fish. Consequently, the meal produced is high in ash and low in
protein, causing the meal to be low in value. If Alaska is not a major player in the fishmeal business and
the value of their meal is low, why are they doing it? It is because shore-side and mothership
processors were required to reduce their waste discharges by regulatory
agencies. All the factory trawlers
with meal plants were built in Norway and when these boats entered the U.S.
fisheries, the fishmeal plant came with the boat, hence the meal plants are
largely outdated.
Alaska can produce very
high-quality products from fish processing by-products because the fish are
harvested and handled for human consumption and, therefore, the wastes are
fresh. However, the remoteness of
the fisheries, availability of space and fresh water, and the high costs of
energy (steam and electricity) and transportation present unique challenges to
seafood waste recovery and utilization.
In addition, demand for specialized products for use in livestock, pet
and fish feeds require that new technologies to produce by-products from the
processing wastes be developed.
By identifying higher valued
markets and developing processes to produce products for these markets, our
fish processing wastes can become economical because Alaska has one important
advantage. Fish harvested in
Alaska is handled carefully because it is intended for human consumption. Thus, the processing wastes are of high
quality because they are "fresh".
For example, in the mid-1980's, eel farmers reported that their eels
liked Alaska's whitefishmeal (meal produced from fish processing wastes) and
that they would pay a premium price for the meal, however, the protein content
was too low. Thus, the FITC
developed a screening system to increase the protein content (and value) of the
meal by removing some of the ash.
Incidentally, most fishmeal producers in Alaska are using this system
today.
Nonetheless, much more can be
done with salmon. Large specialty
markets are emerging. For example,
in 1995, the Fishery Industrial Technology Center conducted a demonstration
project using a new technology (an Alfa Laval CONDEC system coupled with a
Brown refiner and a KIX dehydrator) to produce a high protein (low ash) meal
and high quality oil and bone meal.
The project was very successful.
They demonstrated that we could make products that would meet the
product requirements of these emerging specialty markets. In addition, they are in the final
stages of installing a pilot-scale Asta Ltd. hydrolyzing unit in the research
facility. Coupling the analytical
capabilities of the research facility with over $1.5 million worth of
pilot-scale equipment, the Fishery Industrial Technology Center has the
capability of producing and characterizing any type of value-added product from
fish processing wastes that one could want.
NEED FOR THE PROJECT
A. Statement of Problem
Approximately 60% of the
salmon harvested in Alaska is used for human consumption when the fish is
canned, fresh or frozen. The remaining 40% is waste (head, fins, viscera,
etc.). If salmon are harvested for
roe (e.g. chums) as much as 90% of the fish by weight is waste. Historically
the waste products were dumped back into the ocean. The Magnuson-Stevens
Fishery Conservation and Management Act Title III, 1996 mandated greater
utilization of harvested species. EPA and DEC have begun the process to
implement changes to how fish processing waste can be handled with the threat
that unless significant capital improvements are made at plants they will not
be allowed to operate (EPA - Draft General Discharge Permit). Most of the
processing plants cannot comply with proposed new EPA rules given existing
technology. Economic impacts of decline in this industry would be significant.
Seafood harvesting and processing is the largest private sector employer in
Alaska. In Southeast Alaska alone over 2,000 jobs can be attributed directly to the salmon industry.
These new laws, combined with
a dramatic decrease in the price of salmon due to fish farming, have created a
necessity to develop value-added products for economic sustainability of the
fishing industry. Increased? Enhanced? Additional? Fish waste products is one
solution.
B. Benefit
The project has the potential to keep the industry profitable
and prevent unemployment for Southeast Alaskan fishermen and others in the
fishing industry. The project will have very tangible and direct benefit to
salmon fisherman, processors and communities in Southeast Alaska. As an
example, if a value added product with demonstrated economic benefit is
identified it will create additional business opportunities as well as provide
an economic solution for salmon waste issues. In addition, the list of
cooperators in the industry steering committee includes businesses already
engaged in by-product utilization, thus the project will benefit these
companies immediately by increasing their by-product utilization.
C. Location
The project will focus on the
needs and utilization of fish processing wastes at various sites in Southeast
Alaska. The production and
characterization of value-added byproducts from the fish processing wastes will
be conducted at the Fishery Industrial Technology Center, Kodiak, Alaska. Based on need, various equipment
components could be placed and operated in plants in Southeast Alaska. For example, the pilot scale Asta Ltd.
Hydrolyzing unit is self-contained and capable of handling up to 1,000 lbs of
raw product per hour.
PROJECT DESIGN
A. Objectives
The ultimate objective of the project is to identify
economically viable means of disposing of salmon waste to optimize the profit
potential in the harvested fish.
An important piece of this objective is to provide a comprehensive
industry analysis to interested businesses that can put waste processing plants
into production as soon as possible. Additionally, governments are potentially going to be
eager to throw funding at the fisheries crisis when its magnitude has become
more apparent to the public. It
would be wise for the industry to be ready with viable solutions.
The
project will determine the economic feasibility of the use of fish
processing byproducts by developing and testing the technologies, develop new
technologies and assessing the costs to produce several different end products
(fishmeal, bone meal, fish oil and fish hydrolysate)
from the fish waste streams in Southeast Alaska. In addition, the potential and
strength of the markets for those end products, as well as the cost to get
products to the marketplace will be determined. Another objective of the
project is to assess the demands for specialized products from salmon waste in
Southeast Alaska for use in fertilizers, livestock, pet and fish feeds, human
consumption and human personal health care products with their cost structure
and applicability.
B. Project Description
Technical Aspects
The work being proposed is best
described as a Technology Transfer Project. Coupling technology with a strong analytical component is
essential to demonstrate new technologies to the seafood industry. The Fishery Industrial Technology
Center is a state-of-the art research facility with all the analytical
capabilities to document the chemical, nutritional, quality, and wholesomeness
of our fishery wastes and byproducts.
In addition, the pilot plant with over $1.5 million worth of pilot-scale
equipment can be used to produce any desired by-product from fish wastes; i.e.,
fishmeal (press cake with or without stickwater fraction), solubles, bone meal,
oil, silage, hydrolysate, concentrated hydrolysate, as well as other
value-added byproducts. Where the
fish wastes are properly handled, a number of byproducts can be produced for
human consumption.
Funding being requested will be used
to help cover the costs of operating different pilot-scale systems while
working with the industry to produce various byproducts, and to determine the
best system for handling their fish wastes.
Measurements of success
Overall the goal of the project will
be to provide a summary of the economics of salmon waste products and
demonstrate the potential for adding value to the waste stream. Investigation
of specific products (meal, oil, hydrolysate, etc.) will provide an opportunity
to evaluate individual methods.
Markets will be researched which will help determine the potential
growth of salability for the products. By conducting a market study, Southeast
Alaskan salmon products will be measured on a global market scale. If one or
more waste product lines are shown to be feasible then the value will be in
creating baseline information for Alaska based businesses to capture greater
margin from the salmon wastes.
Sustainability of the project
The fundamental information generated
and gathered in this project will be a critical foundation to future economic
evaluations of salmon waste products. By JEDC coordinating the project, the
information will be located in a central place and thus easily added to the
knowledge base of the Southeast Alaska fishing industry and disseminated as
appropriate in the future. A matrix will be developed for costs and markets for
the various products. The inputs for the matrix will be easily revised as
market forces change over time. Given trends in the prices of salmon and
increasingly widespread discharge regulations the importance of critical
evaluation of salmon waste-handling methods is anticipated to grow in the
future.
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