Hooking into Asian seafood markets: commercial development of selected under-utilised Australian fisheries resources for Asian markets

Project number: 1997-342
Project Status:
Completed
Budget expenditure: $278,809.65
Principal Investigator: Kevin Smith
Organisation: Department of Primary Industries (QLD)
Project start/end date: 9 Aug 1997 - 19 Dec 2003
Contact:
FRDC

Need

The proposed project addresses the FRDC program "Industry Development" and its key areas of "market development" and "value adding". There is a need for improved market development by the Australian seafood industry. With the limited future growth of the wild catch and the increasing demand for fish and seafood, there is a need for improved resource utilisation.

Previous research by Agribusiness Marketing Services in Taiwan has indicated that certain importers may demand fish species presently unavailable commercially for export from Australia. In the words of one importer "there are many fish available in Australia which the Taiwanese like, which in Australia they only use for bait".

The value added mullet roe market provides an example of how identification of market requirements can create a new valuable export opportunity from a previously under-utilised and under-valued product.

This highlights the need for both market research to identify potential market opportunities of seafood species which are currently under-utilised and the need for technical support to enable commercial development of these markets.

The provision of marketing and technical expertise combined with the development of value adding processes will encourage the harvesting of species which are currently not commercially viable in Australia. It is vital that the chosen species represent a sustainable fisheries resource.

Objectives

1. To carry out market research in Asia
to identify product opportunity and customer needs.
2. To identify and select certain sustainable Australian fisheries resources that will meet the product criteria as identified by the market research in stage one and develop a decision matrix linking species with most suitable Asian markets.
3. To produce product prototypes (eg smoked, dried, frozen, chilled, whole, live etc.) and identify suitable commercial partners capable of producing the export product from the identified under-utilised species.
4. Carry out market evlauation of these prototypes in Asia.
5. To document a model for future commercialisation of other species by industry.

Final report

Fisheries biology of the cuttlefish (Sepia apama Gray) in South Australian waters

Project number: 1998-151
Project Status:
Completed
Budget expenditure: $131,648.60
Principal Investigator: Anthony J. Fowler
Organisation: SARDI Food Safety and Innovation
Project start/end date: 28 Jun 1998 - 30 Dec 2003
Contact:
FRDC

Need

This project aims to provide the biological knowledge to sustainably manage a new species in South Australian fisheries production. It also aims to maximise returns for a species which, until recently, yielded low returns to fishers but has significant potential in export markets.

Targeted fishing effort on the cuttlefish Sepia apama has rapidly increased in northern Spencer Gulf during recent years. Annual reported catches have increased from less than 4 tonnes to more than 250 tonnes within 5 years. Licence holders in the fishery have expressed strong concerns over the sustainability of the fishery which is restricted to a spatially small area near Pt Lowly. The fishery is currently managed within the broad management framework of the commercial marine scalefish fishery, which provides for no specific restrictions on either effort or catch for cuttlefish. More stringent management controls, specific to this species, need to be introduced before the commencement of the 1998 fishing season.

There is a complete lack of scientific information regarding the general biology and life history characteristics of S. apama, despite its large size and common occurrence in southern Australian waters. Other commercial cuttlefish species are known to be short-lived and semelparous (spawns once and dies), a lifecycle common to many cephalopods. With this type of lifecycle, overfishing in a single year can cause a stock to collapse (Rodhouse and White, 1995). In addition, the exploited population is understood to be a spawning aggregation, which would further increase the potential to deplete the stock.

An improving market for this species, including the potential for an export market, suggests that exploitation levels will continue to increase. Additionally, other known populations within South Australia and other southern States (currently unfished) may attract fishing effort. There is therefore an urgent need to establish the general life history characteristics of S. apama in South Australian waters, and gather baseline biological data upon which the impacts of fishing on this species may be assessed and any necessary management controls may be based.

Currently South Australian cuttlefish are attracting a much lower market price than other cuttlefish species of a similar size being sold in Japanese and European markets (AUS$1-2 as compared with US$5-7). Therefore, there is a definite need to investigate possible marketing strategies which would increase the price of the current product and/or identify alternative value-added products (especially if they utilise other parts of the cuttlefish currently being discarded). An even more exciting opportunity may exist with the live fish trade.

Rodhouse PG and White MG (1995). Cephalopods occupy the ecological niche of epipelagic fish in the Antarctic polar frontal zone. Biol. Bull. 189: 77-80.

Objectives

1. To establish the general life history characteristics of S. apama in South Australian waters, including growth, age and reproductive biology.
2. To estimate the abundance of cuttlefish in the Pt Lowly fishing grounds and its relationship to the commercial and recreational catch.
3. To investigate egg densities, recruitment and the relationship with adult abundance, timing of spawning and its interaction with the fishery.
4. To investigate the structure and seasonal movement patterns of the exploited population and its relationship with other known populations in South Australian waters.
5. To investigate marketing strategies aimed at increasing the value of the current cuttlefish product and/or identifying alternative value-added products.

Live export opportunities for value-adding of Australian freshwater and estuarine fishes

Project number: 1998-352
Project Status:
Completed
Budget expenditure: $197,730.00
Organisation: Southern Fishermen's Association Inc
Project start/end date: 28 Jun 1998 - 30 Dec 2008
Contact:
FRDC

Need

Preliminary estimates indicate that South Australia's inland/estuarine commercial fishers may be missing out on $3.5-24.5million annually from their relatively static finfish production, representing 67%-540% of the current domestic landed value - all from the lack of a readily available, robust live transport technology! This likely translates to proportionately greater export losses nationally - and missed Industry earnings for reinvestment. At the same time, experts (see FRDC Project Report 92/125.26) indicate much research is already complete. However, for Australian inland/estuarine finfish, no well evaluated and packaged system exists to make live export marketing happen now.

Despite the massive value-adding success from export of quality marine fish products to high demand Asian and other overseas markets, Australian freshwater parallels have not been developed. Production potential from freshwater and estuarine wild capture fisheries has limited capacity to expand, therefore, industry profitability incentives must focus on obtaining greater return on sustainable harvest. Australian freshwater and estuarine fishes are consistently and depressingly undervalued relative to equivalent species on overseas markets (eg, black bream seldom exceed $14A/kg on the South Australian market despite a 96% reduction in harvest since the 1970's while the almost identical Japanese or sea bream, Acanthopagrus latus, regularly returns $45US/kg in Asian metropolitan markets).

Concurrently, development of aquaculture capacity for these same freshwater and estuarine species lags behind higher return marine counterparts due to inadequate profit incentives. This is particularly evident given that similar species worldwide are typically more robust to culture conditions and therefore first to be cultured.

Successful development and transfer of live shipping technology for key Australian freshwater and estuarine species to both wild capture and aquaculture industries has the capacity to overcome these current limitations. Live marketing of wild production can harvest export value, increase profitability per unit production, and provide an identical mechanism for development of a parallel domestic market. Typically, export initiatives provide extremely strong incentives for continuous improvement of product quality. Success in a foreign market also provides excellent protection of our home markets through competitive advantage. The profit incentive of elevated prices domestically and abroad will necessarily spur development of cultured production of these same species.

Objectives

1. To evaluate and document the range of live transport options available worldwide for golden perch, Murray cod, mulloway, cockles (pipis) and black bream relative to survival, cost, and simplicity/practicality.
2. To investigate the value-adding potential of live marketed fish of the nominated species on three major Asian metropolitan fish markets relative to market acceptance/need, value at auction, product tailoring, continuity of supply, promotional needs and import/transport costs.
3. To document the resulting system aimed at maximizing net return to fishers per unit product (by species) in the form of a export marketing plan, and as a brochure providing a step-wise "how to live export freshwater and estuarine finfish" process.
4. To successfully incorporate/transfer any resulting value-adding export marketing system successfully into industry.

Related research

Industry

Maintenance and operation of the National Seafood Centre

Project number: 1997-400
Project Status:
Completed
Budget expenditure: $347,927.75
Principal Investigator: Ian Wells
Organisation: Department of Primary Industries (QLD)
Project start/end date: 28 Jun 1997 - 30 Jul 2003
Contact:
FRDC

Need

To assist the Australian Fishing Industry to develop and capture economic benefits there is a need to identify and co-ordinate post-harvest R&D nationally and ensure technology transfer and commercialisation of the research results.

NSC funding of commercially focussed R&D provides business incentive towards R&D. This funding also provides important leverage for industry projects to actually happen. NSC funding support can stimulate industry development and subsequent production activities that would not have otherwise taken place. NSC-funded activities typically represent an investment of FRDC funds as a share of the cost of short-term, market-focussed, applied research projects with the potential for high return. (See Appendix I e Section 3.1). NSC funding intervention can also bring forward the timetable for industry led research, hence capturing opportunities and economic benefits sooner.

Research is by definition, a risky activity with a level of uncertainty. Risk related to research success can be minimised by ensuring that up to date science and scientific methods are employed and that capable scientists and investigators are selected and managed. Australian scientific R&D has failed in the past to harness some of its best science into profitable technology. Reasons for this include that industry has not been pro-active in directing scientists and that neither culture understands each other adequately. It is at this interface between industry and R&D where NSC operates. Successful R&D is that which is developed in conjunction with the decision makers and thus “owned” by them. By way of networking, the Commercial Manager of NSC identifies the various inputs necessary, simultaneous or phased, between researchers, producers and down-stream value-adders to give them the greatest chance for success.

The NSC is not designed to provide or replace the funding for longer term, applied or strategic R&D in the discipline of value-adding for the post-harvest fishing industry.

Objectives

1. Maintain and operate the National Seafood Centre to add value to fish and fish products through:(a) planning, funding and managing short-term market focussed, applied research and development with the potential for high return
and(b) keeping industry aware of opportunities and technical developments through the promotion of R&D results, and facilitating collaboration between industry and R&D agencies.(See Appendix II)

Development of value-added prawn products through assessing and refining the cold chain and freezing techniques of brine immersion freezers

Project number: 1997-405
Project Status:
Completed
Budget expenditure: $39,760.00
Principal Investigator: Bruce Goodrick
Organisation: Department of Primary Industries (QLD)
Project start/end date: 7 Oct 1997 - 15 Feb 2002
Contact:
FRDC

Need

The Queensland production of aquacultured black tiger prawns (P. monodon) was 1104.3t in 1995/96. The product is mainly bulk packaged fresh and frozen, and is sold onto the domestic market. Only 2% of Australia’s black tiger prawn production was exported in 95/96. The ex farm gate value of black tiger prawns rose only slightly during the 95/96 season to record an average price of $13.41/Kg. Production of this species is expected to rise in subsequent seasons (Lobegieger 1997). The value of black tiger prawns can be improved through assisting the development of a retail and wholesale frozen product.

The foodservice industry is rapidly growing in Australia, and seafood is a popular choice for consumers when dining out. The National Seafood Consumption Study (1992) found that this was more than likely due to the mess and waste involved with home preparation of seafood products such as prawns but also found that customers were willing to pay premium prices for convenience and top quality. An opportunity exists to target the catering and restaurant trade with high quality and convenient prawn products especially frozen ones due to the capacity to store them. Increased competition has forced producers world wide to look at the downstream activities and increasingly ask the question - "What does the customer want and how can I best satisfy these wants?". The industry recognises that aquaculture shrimp producers from Asia are now providing stiff competition in price and quality (National Seafood Consumption Study 1992).

This project needs to be performed because of a series of extremely valid reasons:

1) Spiral blast freezers, although producing individual products frozen to -35°C through the use of conveyor belts, are expensive to purchase and run. Small room type blast freezers offer a cheaper alternative but unfortunately because the product needs to be packaged before freezing the resultant form is block or bulk frozen. Consideration must be given to the economic status of small to medium domestic and export businesses (SME's & SMD's). These business are unable to expend the capital required to install units such as spiral blast freezers. The growth of small to medium export and domestic businesses needs to be fostered to allow improvement in Australia’s economic status. SME’s and SMD's greatly outnumber the larger companies in the aquaculture and seafood processing industries

2) Brine freezing offers a rapid reduction in temperature for the product to approximately -15°C, but during the steps of glazing and packaging the temperature will rise. During commercial production we have logged temperature rises to between -4 to -9°C (refer to attachment 1). This places the product into the critical freezing zone and causes damage to the texture and water holding capacity as well as magnifying the risk of oxidation. Because the temperature is not low enough the glaze does not instantly freeze onto the prawn so that during storage some degree of fusing together occurs. The standard industry solution to this problem is to simply drop the package onto a hard surface such as the floor to loosen the attachments. Unfortunately, this also results in breakage to the feelers, legs and tails of the prawns detracting from the visual appeal of the product.

3) The product temperature after packing causes a heat load on the storage freezers increasing production costs for manufactures. It also damages products from previous harvests already stored in the freezers compounding the problem. The only alternative economically viable course of action is for the producer to place the product into a standard room type blast freezer to reduce the temperature and industry recognises this as potentially damaging to the product and inefficient due to the slow rate of heat transfer of the combination of packaged product and these freezers.

4) Temperature fluctuations damage the glaze allowing parts of the prawns to be subjected to freezer burn and desiccation. This makes the prawns unattractive to consumers and lowers the value.

5) The producers need to pack the prawns quickly so they are transferred to the storage freezer as soon as possible. This limits the producer to packing in bulk packages, a very unfriendly method for consumers and lessening the likelihood of retail products being produced.

6)Freezing to a lower frozen temperature and more stable storage conditions combined with the protection of an ice glaze will markedly increase the storage stability and shelf life. This makes it easier for producers to plan their years harvest and sales. It also makes retailers and wholesalers/caterers more confident in continuity of supply.

7) Woolworths is currently importing 5 Kg bulk packs of brine immersion frozen Black Tiger prawns from Thailand. Examples of this product were recently viewed / evaluated by the co-investigator of this project and found to be vastly inferior to Australian product in both appearence and taste. This product could easily be produced in Australia and be of a much higher quality. There is also the added benefit of producing a future export commodity for the growing Asian seafood markets.

8) The current solution used in brine immersion freezers is a 26.4% salt solution. With the increasing health awareness of today’s society, there is greater demand for low or reduced salt and fat products. Our proposal would reduce the amount of salt required by the brine immersion system because the freezing point of the refrigerant would be lowered by means other than brine. In fact we would call our system the immersion freezing technique as brine is usually associated with saturated salt solutions.

9) The only change to the refrigeration units envisaged to enable lower temperatures is the replacement of the expansion (TX) valves and refrigerant gas. The current environmental move is to replace Chloro-Fluro-carbons (CFC’s) with non ozone depleting substances as quickly as possible. It is therefore likely that the operator will be required to cover the cost of replacing the gas in his refrigeration system with a newer less damaging gas in the future as services and repairs occur.

10) The challenge associated with the brine immersion system is simply to achieve a lower immersant temperature. A new solution can be used as a substitute for salt brine. One which has a lower freezing point and results in lower product temperature, when removed from the immersion freezer. By doing this the temperature rises during glazing and packing would result in minimum damage to the product. For example, temperature fluctuations between -35 and -25 °C do not damage the product as do fluctuations between -5 and -15 °C. This procedure would involve the minimum financial outlay by small to medium businesses. It also opens up opportunities for producers to increase the amount of value adding they perform and enhances the likelihood of new retail products being developed.

Objectives

1. To facilitate the development of a convenient and high quality frozen prawn product suitable for the catering / foodservice trade.
2. Determine a more efficient and effective freezing medium and / or handling procedure for use with brine immersion freezers.
3. Develop a suitable packaging system that is compatible with enhanced freezing techniques and provides greater flexibility in wholesale and retail marketing and facilitates more efficient processing, handling and storage and assured quality.
4. Develop a quality assured handling procedure for the product that ensures a high level of consumer confidence in product quality and safety.

Development and test-marketing of value-added tuna products

Project number: 1997-406
Project Status:
Completed
Budget expenditure: $20,000.00
Principal Investigator: Janette McDonald
Organisation: Smokin Joes Seafood Delicacies Pty Ltd
Project start/end date: 14 Dec 1997 - 18 Nov 1998
Contact:
FRDC

Need

From a number meetings with both Woolworths and Coles supermarkets we have found strong demand for our intended retail range of products namely:
1.Albacore tuna hot smoked
2.Yellowfin tuna cold smoked
3.Yellowfin tuna steaks 4 marinated flavours - natural, asian, thai chilli and indian (single serve)
4.As above in double serve
5.Atlantic salmon steaks in 4 marinated flavours natural, asian, thai chilli and apricot.

Both supermarket chains are keen to see the products trialled in each of ten stores in NSW over thirteen weeks. To enable us to meet this demand we are seeking NSC support for the following areas.

1.Determination of shelf life and maximising this shelf life to at least 14 days for selected marinated products. To assist in achieving this a new chemical sanitising agent for direct contact use will be investigated to quantify benefit to shelf life. This chemical will be most likely classified as a processing aid as it is non toxic already approved by The National Health and Medical Research Council NHMRC. Approval is being sought from the ANZFA by the chemical supplier and will be obtained before product launch.

2.Development of a documented HACCP based food safety plan for the processing of the range of Smokin Joes products. This will require consultant input and involve overall audit for the processing area, necessary and appropriate staff training and system documentation.

3.Offset of the cost of production to retail test market stage specifically - the cost of supply and printing of laminate vacuum pouches. The printing is quite expensive involving each of five different product labels being printed directly onto each of the bags. To minimise costs hand stuck flavour labels will be applied to each product. Normally the minimum print run is 20,000 for each product although 10,000 can be obtained at a dearer rate. This operating expense (additional to all the others involved) is more than we can beet at this time. We are meeting new capital equipment costs of $17,000 and other operating costs of well over $100,000 during the course of the test market phase. The packaging is vital to the success of the product as beyond being functional it must assist to influence the customer to purchase.

We have obtained a range of quotes for the packaging and the best is listed below:

Packaging price supplied and printed per 1,000/20,000per 1,000/10,000
smoked albacore tuna $208.82 $313.64
smoked yellowfin tuna $274.87 $375.58
yellowfin tuna steaks (single serve)$220.45 $327.55
yellowfin tuna steaks (twin serve)$227.33 $334.87
tasmanian atlantic salmon steaks$75.00 $120.00
total per 1,000 $1,226.92 $1799.19

Objectives

1. Determine the potential retail shelf life for selected marinated tuna and salmon products or other species such as spotted trevalla, including the trial of a commercial sanitizer on the fish during processing
2. Document a HACCP food safety plan for Smokin Joe's products
3. Document as a case study, the degree of market acceptance achieved during the test marketing phase - indicating sale performance variability between stores, between products and variation over time eg repeat sales and any customer feedback mechanism employed
4. Produce a report to NSC on the above three activities

Development of value-adding products and preliminary marketing trials for jack mackerel (Trachurus declivis)

Project number: 1997-410
Project Status:
Completed
Budget expenditure: $39,324.00
Principal Investigator: Felicia Kow
Organisation: Australian Maritime College (AMC)
Project start/end date: 7 Mar 1998 - 31 Oct 2000
Contact:
FRDC

Need

To develop consumer acceptable value-added products, thereby increasing the value of the jack mackerel fishery.

Objectives

1. Examination of potential jack mackerel products for human consumption.
2. Development of a selected range of jack mackerel products (2-3) for further development, with preliminary acceptability tests using focus groups. The ultimate aim is to develop new Asian markets.
3. Market testing of new jack mackerel products, targetting ethnic communities.
4. Documentation of processing procedures including HACCP plan which complies with both U.S. FDA Seafood HACCP regulation and ANZ Food Standards Code.