Final Report
Preliminary Analysis of the Value-added
Opportunities for Albacore Tuna and Seafood
Products
July 30, 2001
EXECUTIVE SUMMARY
•
In response to suggestions from its membership, the B.C. Tuna Fishermen's
Association (BCTFA) has commissioned this report about opportunities for
value-added albacore tuna products. The report provides a preliminary
examination of the opportunities for ready-to-cook and ready-to-eat
albacore tuna products.
•
The lack of product diversification in the BC albacore tuna industry is a
symptom of a host of supply-related issues. The issues that are of special
concern to the BCTFA focus on the Canada-US Albacore Tuna Treaty,
licensing of Canadian Albacore tuna fishermen/vessels, and the concept of
limited entry. The BCTFA members are also vitally concerned with the general
health of the North Pacific Albacore tuna stocks, treaties and licenses that
affect access to those stocks, and their ability to obtain the best prices for
their catch. Although the Association has no wish to dilute the importance
and priority of these issues, it is also taking a longer-term perspective on the
growth and development of the BC Tuna Industry. For this reason, it has
commissioned this report on the long term potential for value-added product
diversification.
•
Well-developed distribution channels exist in the albacore tuna industry. Tuna
caught by the Canadian offshore fleet is marketed to canneries but also bled
and blast frozen for sale to sashimi markets. The majority of coastal caught
tuna is distributed through brokers to canned markets. The markets for
canned tuna are generally directed to budget- minded consumers with
commodity pricing driving the marketplace.
•
Both market and supply side forces have a powerful impact on the Canadian
Albacore tuna industry's production of value-added products. The present
lack of elasticity in the supply of albacore is one of the chief reasons why
more product development and value-added processing is not being done.
•
This report examines an innovative development model from the United
States that could be of significance to the Canadian albacore tuna industry.
The Western Fishboat Owners Association (WFOA) –- a California-based
organization of tuna fishermen -- has implemented an effective system to
finance research initiatives that support product and market development
planning that benefits the industry as a whole. In 1971, the WFOA established
the American Fishermen’s Research Foundation (AFRF) in order to ensure that
it had the necessary scientific and other data to be able to answer questions
related to industry development.
The BCTFA is in favour of establishing an independent Canadian Albacore tuna
research capacity – in the way of forming an entirely Canadian
TUNA VALUE ADDED OPPORTUNITIES
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•
Research Association. The Canadian Albacore Research Association could
take the model of the AFRF and adapt it to the specific needs of the
Canadian albacore industry. The Canadian albacore tuna industry must fund
market research and market development initiatives to ensure that the
domestic market for high quality albacore tuna is increased significantly in
the medium term.
•
Four factors impact the successful marketing of value-added albacore tuna
and seafood products:
o
o
o
o
•
Supply issues
Customer demand
Lack of product development
Industry organizational issues
An examination of current market trends provides the clues for future
development opportunities for an expanded range of albacore tuna
products. Among the food trends which offer the promise of future
opportunities are:
o
o
o
o
o
specialty food markets
ready-to-cook -- convenience markets
tuna specialty markets
snack food markets
pet food markets
•
Among the specific product opportunities that could be explored by the
Association are tuna burgers, tuna oil, pet food, tuna jerky, tuna sausages
and Hawaiian-style poke. Overall, twenty-five products are reviewed in this
report. Some BCTFA members and some of the largest tuna companies in
North America are already producing a number of those products. Other
products will require more research and testing to determine whether they
are commercially feasible in Canada.
•
This report presents seven recommendations for future research and activities
leading to increased product knowledge that could become the
groundwork for future product diversification:
1. The BCTFA could send a small delegation to Japan, Hawaii and possibly other
countries in the Asia-Pacific region to acquire more first-hand information
about some of the value-added tuna seafood products produced in those
countries and described in this report.
In order to stay fully abreast of developments in the global tuna industry, it is
recommended that the BCTFA purchase a membership with INFOFISH.
TUNA VALUE ADDED OPPORTUNITIES
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•
2.
In order to assess the demand for albacore tuna among local
markets, a survey is recommended as a way of gathering data about
the marketplace.
3.
In order to acquaint restaurateurs with the information acquired
through this project, and in order to encourage additional sharing of
information, it is recommended that the BCTFA sponsor a product
development workshop
4.
Some product development projects or tests should be completed to
determine whether some of the products identified in this report could
be commercially produced in Canada. In such product development
and testing pilots, the BCTFA can play a role as a facilitator to
encourage industry participants to work together
5.
There are opportunities for selling local or regional brand canned
premium albacore tuna as part of a "ready-to-eat" lunches or midsized snacks.
6.
New marketing materials need to be developed to ensure that
consumers fully appreciate the various uses and versatility of albacore
tuna.
The BCTFA is willing to take a leadership role to develop a product
diversification strategy. This will require matching public investments to
effectively co-ordinate the industry in support of new product and market
developments. The result of such investment would be industry growth, more
employment, and the creation of more income opportunities.
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TABLE OF CONTENTS
INTRODUCTION ....................................................................................................................................... 7
STIMULATING INTEREST IN VALUE-ADDED ALBACORE TUNA PRODUCTS ......................................................... 7
SUPPLY ISSUES: THEIR IMPACT ON THE PRODUCTION OF VALUE-ADDED TUNA AND
SEAFOOD PRODUCTS ............................................................................................................................. 9
OVERVIEW OF SUPPLY ISSUES ....................................................................................................................... 9
IMPLICATIONS OF SUPPLY SIDE TRENDS ...................................................................................................... 11
FACTORS CONSTRAINING THE SUCCESSFUL MARKETING OF VALUE ADDED
ALBACORE TUNA AND SEAFOOD PRODUCTS.................ERROR! BOOKMARK NOT DEFINED.
SUPPLY ISSUES ........................................................................................................................................... 13
CUSTOMER DEMAND .................................................................................................................................. 14
LACK OF PRODUCT DEVELOPMENT............................................................................................................. 14
INDUSTRY ORGANIZATIONAL ISSUES ............................................................................................................ 15
FUTURE OPPORTUNITIES IN THE TUNA VALUE-ADDED INDUSTRY................................... 16
SPECIALTY FOODS ...................................................................................................................................... 16
READY TO COOK - CONVENIENCE MARKET ................................................................................................. 17
TUNA SPECIALTY MARKETS ......................................................................................................................... 17
SNACK FOOD MARKETS .............................................................................................................................. 18
PET FOOD MARKETS .................................................................................................................................. 18
PRODUCT DEVELOPMENT OPPORTUNITIES FOR ALBACORE TUNA AND SEAFOOD
PRODUCTS................................................................................................................................................ 21
INNOVATIONS IN CANNED PRODUCTS .......................................................................................................... 21
POKE AND OTHER TUNA-BASED CONDIMENTS ............................................................................................ 23
MAHI-MAHI ................................................................................................................................................ 23
TUNA STEAKS ............................................................................................................................................. 24
RAW TUNA LOINS ....................................................................................................................................... 24
SEARED TUNA ............................................................................................................................................ 25
COLD SMOKED TUNA .................................................................................................................................. 25
HOT SMOKED TUNA ................................................................................................................................... 26
TUNA BURGERS .......................................................................................................................................... 27
TSUKEMONO .............................................................................................................................................. 27
TUNA JERKY ............................................................................................................................................... 27
TUNA CANDY .............................................................................................................................................. 28
COOKED TUNA LOINS ................................................................................................................................. 29
TUNA SAUSAGE AND HAM ........................................................................................................................... 29
HALF DRIED TUNA LOIN ............................................................................................................................. 30
TUNA OIL ................................................................................................................................................... 30
PET FOOD .................................................................................................................................................. 31
DRIED FISH STICKS .................................................................................................................................... 31
SEASONED TUNA VISCERA (KATSUO SHIOKARA) .......................................................................................... 32
MEAT ANALOGS .......................................................................................................................................... 33
TUNA CALCIUM .......................................................................................................................................... 34
TUNA DUMPLINGS ...................................................................................................................................... 34
TUNA EYEBALLS ......................................................................................................................................... 34
TUNA COOKING JUICES AND POWDER ......................................................................................................... 35
TUNA EXTRACT........................................................................................................................................... 35
WAYS OF FINANCING FUTURE PRODUCT AND MARKET DEVELOPMENT INITIATIVES
FOR THE ALBACORE TUNA INDUSTRY ........................................................................................... 36
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RESEARCH AS A PREREQUISITE FOR INDUSTRY GROWTH .............................................................................. 36
A MODEL FOR FUTURE RESEARCH INITIATIVES ........................................................................................... 36
A CANADIAN ALBACORE RESEARCH ASSOCIATION ....................................................................................... 38
RESEARCH TO BE CONDUCTED BY THE PROPOSED ASSOCIATION ................................................................. 39
SUMMARY ................................................................................................................................................... 39
CONCLUSIONS AND RECOMMENDATIONS................................................................................... 40
CONCLUDING COMMENTS .......................................................................................................................... 40
RECOMMENDATIONS FOR FUTURE RESEARCH ............................................................................................. 41
RECOMMENDATIONS FOR FUTURE ACTIONS ................................................................................................ 42
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Introduction
Stimulating Interest in Value-added Albacore Tuna Products
The BC Tuna Fishermen's Association (BCTFA) has commissioned this report about
the opportunities for value-added tuna products in response to suggestions from
its membership. This report examines the opportunities for read-to-cook and
ready-to-eat albacore tuna products. Currently, the majority of Canadian
caught albacore tuna is sold to either the canned market or to the sashimi
market.
The key question that inspired this report was: If Canadian caught albacore tuna
were used to produce a broader range of products, could markets be
expanded over time?
There is very little documentation about the potential for value-added albacore
tuna. One major reason for this lack of information about albacore product
development is because such information is of a proprietary nature. Anecdotal
information offered by members of the industry suggests that various attempts
have been made to develop new products – but usually without much success.
This report makes available some general information about new albacore tuna
product variants . The expectation is that the product suggestions described
may stimulate a more open dialogue among industry participants about the
potential for value-adding. If such discussion ensues, then the report will have
satisfied one of its purposes.
Beyond the mere description of products, this report discusses the trends and
market forces that are shaping the value-added tuna industry. At various times,
product development will alternately lead or follow the cutting edge of
consumer tastes. But whether they lead or follow, product developers must be
well informed about the marketplace.
For many in the Canadian albacore tuna industry, product development
remains an academic exercise that has no immediate interest because the
industry appears to be driven by more pragmatic supply-side issues.
Notwithstanding this, from a developmental perspective, it is important to look
beyond the short and medium term. In many industries in the Asia-Pacific region,
it is not uncommon to set ten-year industry plans. Product development in the
British Columbia albacore tuna industry must become a long-term exercise that
moves forward as the industry evolves.
Mechanisms for funding product development and other initiatives are
examined in the context of public-private partnerships. Such partnerships could
be facilitated by the BCTFA and could represent a viable way for the Canadian
albacore industry to leverage support for new growth in the future.
TUNA VALUE ADDED OPPORTUNITIES
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This report concludes with recommendations that could lead to additional
research and activities that build on the information presented.
This report is intended to be a preliminary analysis of the issues, constraints and
opportunities for value-added albacore tuna products.
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Supply Issues: Their Impact on the Production of
Value-added Products
Overview of Supply Issues
Among the major albacore tuna fisheries in the world, British Columbia is still a
relatively small player. In 1999, Canada accounted for only 2.2% of the total
albacore catch -- behind Japan (77.5%), the United States (11.6%), and Taiwan
(3.7%). Collectively, those countries' fleets are responsible for landing between
88% and 95% of the total annual catch of albacore tuna (Thunnus alalunga)
from the North Pacific Ocean.
1999 Tuna Catch
100%
80%
1999 Tuna
Catch
60%
40%
20%
0%
Japan
Canada
USA
Taiwan
Other
For all albacore tuna fishing countries, the total catch for 1999 was
approximately 127,794 metric tones, representing a 38 % increase over the year
before. The 1999 catch was the highest recorded since the early 1970's. This
increase is attributed to efficiencies in the Japanese pole and line fishery.
The BC albacore tuna industry is primarily export-oriented. Although there are
growing and potentially strong domestic markets for BC tuna products, the
albacore industry is currently being driven by the demand in the United States for
canned tuna products.
There are well-developed distribution channels for the tuna industry. Albacore
tuna caught by the Canadian offshore fleet is marketed mainly to canneries,
although a small portion of the catch is bled and blast frozen for sale to sashimi
markets. The majority of Canadian caught coastal tuna are distributed to
Canadian sushi restaurants.
TUNA VALUE ADDED OPPORTUNITIES
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Most of the sales activity for the albacore sector of the tuna industry is tracked
through the sales of the canned fish. For purposes of information about the
opportunities for value-added tuna, it is useful to have an understanding of the
canned tuna industry.
Markets for canned tuna are generally directed to budget minded consumers
with commodity pricing driving the marketplace. Generally, canned tuna is sold
for between $1.00 to $3.00 per can, with the quality of the tuna, brandmark and
packaging contents driving the differences in price. Skipjack tuna dominates the
catch in the western Pacific, while yellowfin dominates in the eastern Pacific
fishing grounds. US consumers perceive a lower quality in canned tuna having
dark meat.
Tuna is canned in order of price as follows: solid; chunk and grated packs; and
packed in oil, water, broth or seasoning. Raw tuna that is not pre-cooked before
canning and retorting is sometimes used to make “solid pack”. Skipjack
dominates the US market while yellowfin is the major component of the
Japananese and EU markets. Sauces and broths, not commonly sold in the US
and EU markets, but suited to local tastes and niche markets, add to the range
of canned tuna products made in the Philippines, Malaysia and Australia.
Canned white fleshed tuna is the gourmet product of US canneries. In the Us,
only albacore tuna may be labelled as "white meat". Due to its popularity,
canned white fleshed tuna commands a premium price from consumers above
light meat canned tuna prices in North America. The principal market for
albacore is the US, although the market in Japan is expanding. About 57% of the
world catch is landed in the US, (1991-95 figures) although albacore accounts for
only about 4% of the total world market for canned tuna.
Much of the Canadian albacore tuna is caught and landed in American ports.
This arrangement is possible due to the Canada-US Albacore Tuna Treaty.
However, recent lobbying from the United States has suggested that the Treaty
may be up for re-negotiation. Should that happen, the effect would be to
greatly curtail Canadian commercial albacore fisheries, and the Canadian
supply of albacore tuna would be limited.
TUNA VALUE ADDED OPPORTUNITIES
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Issues of concern to the B. C. Tuna Fishermen’s Association can be categorized
very briefly:
1. The Canada-US Albacore Tuna Treaty, Licensing of Canadian
Albacore tuna fishermen/vessels, and the concept of limited entry.
2. BCTFA members are vitally concerned with the general health of the
North Pacific Albacore tuna stocks, treaties and licenses that affect
access to those stocks, and their ability to obtain the best prices for
their catch.
Implications of Supply Side Trends
Both market and supply side forces have powerful impacts on the Canadian
albacore tuna industry's production of value-added products. The present lack
of elasticity in the supply of albacore is one of the chief reasons why more
product development is not being done. There are five underlying reasons for
the lack of value-added production in the BC albacore tuna industry:
1. The possibility of changes to the current Canada-US Albacore Tuna Treaty
means that the supply of albacore tuna is not secured, and thus Canadian
manufacturers are unwilling to invest in value-adding.
2. The current trade arrangements have tended to encourage the larger vessels
in the Canadian tuna fishing fleet to land their catch in US ports where the
fish can be sold for American dollars. Those landing arrangements have
tended to provide an impetus to the growth of secondary and value-added
processing activities in the United States. By contrast, the lack of supply has
meant that Canadian manufacturers have not had the same opportunities
for secondary and tertiary industry growth.
3. British Columbia's annual albacore catch is channelled into two primary
markets - canned and sashimi. The sashimi market is currently buoyant and
this means that the majority of raw materials that go into this market leave
little excess for value-added activities. The canned market offers a different
set of forces: the commodity pricing that is characteristic of this market tends
to put a ceiling on the value of albacore -- both in terms of price and in
terms of consumer expectations. Such forces have the effect of tightening
the supply of fish as well as "pigeonholing" the use of the fish into very narrow
markets.
TUNA VALUE ADDED OPPORTUNITIES
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4. To date, there has been little or no investment made in value-added tuna on
the part of Canadian manufacturers. This means that manufacturers that
want to diversify their product range for albacore tuna are pioneers – who
undertake great risks and need to commit large sums for investment.
5. On the consumer side, the lack of product diversification means that the
public has very little awareness of the potential product range of albacore
tuna. Consumers are placing no demands on manufacturers for a larger
variety of tuna products. The result is that new products have to be pushed
by manufacturers into the marketplace rather than being pulled in by
consumers, which is a more costly approach to marketing.
For those reasons, value-adding has not been a mainstay of the BC Tuna
industry. However, circumstances are beginning to change, and the major
multi-national tuna product manufacturers are starting to diversify their lines to
create new opportunities in the industry. It is anticipated that this will soon make
room for niche marketing of a greater range of value-added products. New
product diversification should begin the process of helping to re-position
albacore tuna in the marketplace away from its current narrow product range
to one that is more diversified with more value-added products.
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Factors Constraining the Successful Marketing of
Value Added Albacore Tuna Products
Four factors impact the successful marketing of value-added albacore tuna:
•
•
•
•
Supply issues
Customer demand
Lack of product development
Industry organizational issues
Supply issues
The BC albacore tuna industry continues to face issues that could affect its ability
to secure a consistent supply of tuna. Changes are impending to the
Canada/US Tuna Treaty which could limit the number of vessels that Canada
may employ to fish in designated zones where albacore tuna traditionally
migrate. The changes could also impact the current trade arrangement that
allows Canadian albacore fishermen to land their catch at designated US ports.
A significant quantity of Canadian-caught albacore tuna is sold into the
American market where it is distributed into the canned and sashimi markets.
The size and make-up of Canada's albacore tuna fleet means that if restrictions
to the Treaty are approved then the Canadian industry's overall harvesting
capacity will be limited. The potential curtailment of albacore supply for
Canadian fish and seafood marketers is a dis-incentive to exploring value-added
potentials for the species. If brokers are only just able to satisfy their current
demands, then what need is there for new investments to develop new products
and markets?
Even without the prospect of trade restrictions potentially reducing BC fishery
harvests of albacore tuna, harvests are generally sporadic from year to year. This
too is a dis-incentive for industry to invest in albacore value-added prospects.
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Albacore Tuna 6-Year Catch Trends
(1994 to 1999)
5,000
4,000
3,000
Metric
Tonnes
2,000
1,000
0
1
2
1994
S1
3
1995
4
1996
1997
5
1998
6
1999
Customer Demand
Canadian tastes in fish and seafood are changing but considerable education is
required before Canadian consumers are willing to pay more for albacore tuna
products. Compared with expectations of tuna suppliers in other countries,
Canadians have come to expect a small variety of products from North
American tuna marketers. Albacore tuna is still considered by most Canadians
to be a budget food, and only in certain niche markets are customers prepared
to pay more for tuna that is presented as a high-end premium product. Apart
from the canned market and a few select examples in the United States, there
have been few new marketing initiatives aimed at either broadening the market
appeal of tuna or attempting to re-position it as a higher end or more versatile
product.
Lack of Product Development
The range of albacore tuna products available in Canada is relatively small.
There has been no concerted effort to introduce new products, and there is a
lack of research information available to industry participants to aid their efforts
to develop new products. The fish and seafood industry is highly competitive.
Many businesses do not have excess resources available to engage in long-term
product development. As well, there is very little assistance from government to
fund such initiatives. Thus, the business environment does not encourage new
albacore tuna product development.
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Industry Organizational Issues
The Canadian albacore tuna industry is relatively young. There have been few
alliances struck within the industry that would foster co-operative product
development or marketing ventures among industry participants. Partly, the
culture of the industry acts as an inhibitor to the forming of strategic alliances;
and partly because the Canadian albacore industry has simply not evolved
enough for such alliances to occur. The result is that industry participants have
not co-operated in new product development or marketing efforts designed to
broaden the appeal of albacore tuna to Canadian consumers.
Traditional food preferences in Canada change slowly. In British Columbia, the
influx of Asian immigrants in the last ten years has changed the market
environment for restaurants in major ways – so that sushi and sashimi have
become popular. The sashimi market still has considerable room for growth,
however, as many non-Asian originating Canadian consumers are still not eager
to eat uncooked tuna. In the Prairies, which have a different demographic
make-up, food tastes remain very conventional and sashimi and sushi restaurants
are having trouble penetrating the market.
Tuna is also perceived by Canadian consumers as a budget item and that
perception may discourage consumers from paying premium prices for high-end
tuna products such as fresh tuna steaks. Canadian consumers are also not very
familiar with different species of tuna. Marketing materials must be developed to
educate customers about the superior qualities of albacore, including the little
known fact that albacore is caught by BC fishermen. Most Canadians do not
identify albacore tuna as a BC fish.
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Future Opportunities in the Tuna Value-Added
Industry
A range of possibilities exist to expand the marketing of albacore tuna. This
section provides some details about the opportunities in various market segments
from a variety of perspectives including demographic, lifestyle and end-use
segmentation.
Specialty Foods
The Canadian Specialty Food Association (CFFA) defines specialty foods as
"premium quality foods of some uniqueness with good presentation and select
distribution". Premium foods provide a value-added appeal that is based upon
the following preferences.
Preference
Quality of Ingredients
Sensory Appeal
Form Utility
Origin
Presentation
Description
Either as a result of a manufactured process, or in
the case of a finished product
Flavour, consistency, mouth feel, aroma,
appearance,
Formulation or product format
Where the product was manufactured
Branding, and/or packaging
Apart from these characteristics, the specialty foods that are the most appealing
are those that are good tasting (fresh or chilled), convenient (ready-to-serve or
microwavable) and healthy (containing no preservatives or cholesterol and
which are low in fat).
The specialty foods market is being driven by a number of demographic
changes in Canada's population. The characteristics of those demographic
changes are smaller households, an ageing population, a desire for more
variety, increased demand for quality and healthier foods and the changing
ethnic mix. Among the categories of specialty foods for which demand is
growing the fastest are snack foods (rice cakes, bagel chips and pita crisps) and
specialty condiments (especially seafood sauces and ethnically derived sauces).
Specialty foods tend to be marketed by smaller companies under their own
brands. Approximately 40% are sold through supermarkets. While deals and
discounts are of primary importance to the promotion of conventional branded
products, trade shows, exhibitions and product sampling are the main vehicles
for promoting specialty foods. Specialty foods are marketed equally to domestic
and export markets. The majority of specialty food manufacturers when surveyed
replied that they have growth plans premised on distribution planning for existing
products rather than through product expansion.
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Read-to-Cook -- Convenience Market
A range of socio-economic trends is fuelling expanding markets for ready-tocook and ready-to-eat products. But, this new marketplace remains elusive for
tuna producers, only a few of whom have produced some varieties of fully
prepared take-home tuna entrees intended to be heated and served in thirty
minutes or less.
Attractive packaging, popular flavours, consumer perception of good value and
convenience play major roles in successful marketing. Two-income families are
willing to pay a premium for both quality and convenience and are key
marketing targets.
In the UK, restaurant prices are generally high, leading to good market
possibilities for prepared products. Large supermarket chains such as Sainsbury's
and Tesco's offer many products that are not yet available in Canada. Recipes
are extensively tested and must be approved by the grocer's top management
before they are introduced to consumers. Tuna steak that is pre-marinated and
pre-seared but not completely cooked has proven to be a popular product in
those upscale grocery chains. The product is retailed fresh or thawed from a
previously quick frozen form.
A Seattle-based seafood producer had a less successful result in one of the few
US attempts to enter a similar market. A line of chilled, value-added seafood
entrees was developed and packaged with a fish portion (including tuna),
potatoes/noodles and a vegetable. Those ready-to-bake products could be on
the dinner table in less than twenty to twenty-five minutes. Upscale grocers saw
good sales returns, but volume remained low due to the lack of depth in the
product line.
Tuna Specialty Markets
The sashimi and sushi markets make up the bulk of the market for non-canned
albacore tuna. In order of preference, the favoured species for sushi and sashimi
are bluefin tuna, bigeye tuna, yellowfin tuna, skipjack and albacore tuna. This is
a growth market, in which freshness and quality handling are critical.
Fresh fish must be quartered no more than a day or two before sashimi or sushi
are prepared. Loins are trimmed of bone and blood meat, then cut into blocks
300-400mm in length. Fresh tuna is not blocked until just before serving. Thin slices
are cut across the grain of the muscle to produce sashimi or sushi toppings.
Tuna ranching is becoming more of a factor in the supply to the overseas sashimi
market. Prices for farmed tuna from Australia or Mexico are less than for wild
tuna but the lower price point is at the expense of quality. Quality of feed and
length of time in cages are both factors in the quality of farmed tuna. Generally
TUNA VALUE ADDED OPPORTUNITIES
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speaking, eight months is the maximum that tuna can be in a cage before their
muscles turn soft. In terms of feed issues, Australian farmers feed their tuna
sardines and this can change the flavour of tuna. Nevertheless, farmed tuna will
increasingly compete with wild tuna in some of the major export markets. In
addition, if the salmon farming model can be used to foretell future events for
tuna farming, the quality of farmed fish will improve rapidly until farmed fish
become the industry standard.
There are no prospects for farmed albacore tuna in Canada because albacore
is a warm water fish and Canadian waters and conditions are too cold to be
able to farm albacore tuna.
Proper ship and shoreside handling, especially swift killing and rapid chilling are
essential to preserving the qualities desired in sashimi tuna. Quality requirements
for sashimi-grade tuna as well as prices of sashimi for food service use and home
consumption patterns are expected to become more differentiated, following
the pattern of the more developed sushi markets.
Although the retail price for sashimi fluctuates with tuna supply and consumer
demand, the product appeals to consumers in higher income brackets. Quality
control is built right into the sashimi tuna segment because consumers, buyers
and preparers are generally very discriminating. In Canada, this is somewhat less
the case than in Japan, but Canadians are becoming ever more critical of
product standards.
Despite the present undeveloped market, producers of commercially prepared
tuna are encouraged by the growing trend toward convenience foods that are
healthier than conventional fast food.
Snack Food Markets
Snack food markets in Canada are expanding rapidly as consumer tastes
become more varied, in part due to the growing ease of international travel.
Canadians are being offered a broader range of choices and taste sensations
from an increasing number of countries. Japan, for example, is exporting more
snack foods to Canada than ever before. As consumers become more health
conscious, the trend is toward eating healthy snacks rather than empty calories.
Pet Food Markets
The pet food industry is growing significantly in North America. New lines of pet
food and pet food snacks are being produced for this growing market. In the US
this market is worth some $10 Billion annually. Canned cat food accounts for
about 23% of the total pet food market and about 52% of total annual cat food
sales. Tuna is one of the major ingredients used in canned cat food.
TUNA VALUE ADDED OPPORTUNITIES
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The growing pet food market has led to increased competition. Producers have
implemented a variety of marketing strategies to differentiate their respective
product lines. Five multinational companies dominate the North America
market, among which are Heinz, which produces the 9-Lives Brand; Nestle, which
owns the Friskies and Fancy Feast labels; and Mars, which markets Kal Kan and
Sheba. Those larger companies have the resources to invest in expensive
branding programs complete with television advertizing, print media campaigns
and major promotional events.
Despite the high level of competition within the pet food industry, there may be
an opportunity to enter this marketplace with the goal of selling under a private
or regional label. There is increasing concern amongst consumers about the
quality and kinds of ingredients which manufacturers are using for pet food.
Some consumer organizations claim that a number of the major pet food
producers are marketing poor quality products, and that the major pet food
companies include ingredients in their products that are less than wholesome.
Those organizations point to the fact that the pet food industry is an extension of
the human food industry, and they allege that "pet food provides a place for
slaughterhouse waste and grains unfit for human consumption to be turned into
profit". 1
Whether this is valid criticism is another debate. But it is sufficient to say that
health issues and concerns are driving some of the major trends in food
consumption in today's marketplace. Some of these same concerns are spilling
over into the pet food market which is impacting the kinds of marketing
strategies that major pet food companies are employing. All the major
companies tend to stress the quality and nutritional aspects of their pet foods.
An indication of the trend in Canda toward “healthier” pet food use is the
appearance in health magazines of regular columns and articles about pet diets
(e.g. Alive magazine).
Herein may be an opportunity for small-scale niche marketing of pet food.
Smaller Canadian independents cannot compete against major multi-nationals
in the supermarket war for brand dominance of pet foods. However, there may
be a market for premium, high quality pet food that makes use of tuna trimmings
and other higher quality by-products. Marketed regionally through specialty pet
care stores, such an opportunity may have potential. Further research and
1
Animal Protection Institute
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New Packaging
Proceeding apace with new product developments are new innovations in
packaging. One example can be found in Europe where it is common to find
tuna packaged in pouches in institutional and food service sizes (1 kg-2.8kg),
rather than in cans. Pouches are not commonly sold in supermarkets in Canada
though they are used for the tourism market to sell specialty-boxed fish.
Pouches have several advantages over cans: they occupy less volume in the
warehouse, and thereby occupy less shipping space; and quality is improved
because the product cooks more quickly in pouches. Pouches are also simpler
to open, although they are more fragile than cans. Recently a company in the
United States developed a line of vacuum-packed albacore fillets with different
marinades.
If Canadian tuna fishermen could market their products under a co-operative
label (i.e. “Private Brand” label) denoting region of origin, this may have some
cachet in domestic markets. Conversely, studies have shown that for the export
market, the use of the Canadian flag or emblem does not result in increased
sales. American consumers for example do not associate the Canadian maple
leaf with attributes and/or qualities which encourage sales e.g. freshness,
uniqueness, or healthy diet.
TUNA VALUE ADDED OPPORTUNITIES
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Product Development Opportunities for Albacore
Tuna Products
Many tuna products are not yet widely known in Canada. Some twenty-four
products that are described in this section could be introduced to Canadian
consumers over time.
Innovations in
Canned Products
Poke and Other
Tuna-Based
Condiments
Mahi-mahi
Raw Tuna Loins
Tuna Jerky
Tuna Oil
Tuna Calcium
Seared TunaCold
smoked Tuna
Tuna Candy
Pet Food
Tuna Dumplings
Cooked Tuna
Loins
Tuna Sausage
and Ham
Dried Fish Sticks
Tuna Eyeballs
Tuna Steaks
Hot Smoked
Tuna
Tuna Burgers
Seasoned Tuna
Viscera (Katsuo
Shiokara)
Tuna Cooking
Juices and
Powder
Tuna Extract
Tsukemono
Half Dried Tuna
Loin
Meat Analogs
Innovations in Canned Products
Large multi-national corporations dominate the canned tuna industry – so,
except for small niches -- that market is very difficult to penetrate. Figures from
the United States are very reflective of industry and market conditions in
Canada.
According to Infofish Trade News (2000), the three dominant players in the
canned tuna market are StarKist with 43.9% of the market share, followed by
Bumble Bee (22.8%), and Chicken of the Sea (16.5%). The other brands have a
market share of only 16.8%. Lightmeat tuna accounts for 71% of the total market
while albacore has a 29% share. The majority of canned tuna sold in the USA
(and the same percentages probably apply to Canada) originate mainly from
Thailand (57%), the Philippines (25%) and Indonesia (11%). Canned tuna makes
up 37% of all seafood consumed in the USA, and it is the number three product in
the retail category of food purchases.
The consumption of all canned tuna has declined in the USA in the past few
years by about 20%. The one exception is that the consumption of albacore
canned tuna rose during this same period. This is noteworthy because, while
overall prices fell in the past few years, the price of premium albacore canned
tuna rose. Albacore sales have experienced double digit growth in the past few
years. According to analysts, the main reason for the overall stagnation of the
TUNA VALUE ADDED OPPORTUNITIES
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US canned tuna market is that there has been no innovation or promotion in the
past few years. This situation is beginning to change however.
Recently, some of the larger canning operations have began to diversify their
product lines by selling items that are aimed at value conscious consumers
looking for something different in tuna products. These manufacturers are
redefining tuna in a can by adding other ingredients to create more "gourmet
style” products. They are also focusing on life-style markets by offering tuna as
part of a complete meal. One company, for example, is marketing a tuna salad
in a can complete with crackers and plastic spoon. The target markets for this
new product are busy office workers, students or the elderly looking for a quick
lunch or snack. A summary of some of the new products being introduced by
those larger firms is provided in the table below. Retail prices are approximate
and vary from outlet to outlet.
Brand
Description
Price/can
(CAN $)
Gram
weight (g)
Gold Seal
Smoked Light
Tuna Slices
packed in water
$2.29
120g
Clover Leaf
Tuna Salad (Mixed
and ready to eat
sandwich spread
with crackers)
$1.75
78g
$1.75
78g
Cordon Bleu
Tuna Spread
Clover Leaf
Flaked light tuna
with Lemon and
Pepper
$1.29
85 g
Clover Leaf
Flaked light tuna
with Tomato and
Onion
$1.29
85 g
Clover Leaf
Flaked light tuna
with sun-dried
tomato and basil
$1.29
85 g
Notes
- Canned product
- Dolphin safe
- Thailand yellowfin tuna
"cut and packed by
hand"
- Packaged product
containing one can of
yellowfin tuna classic
recipe tuna salad and
6
crackers and a plastic
spoon
- Light tuna and multiple
ingredients
- Skip jack tuna with
water, paste, citric acid
and multiple ingredients. New Product
- Skip jack tuna with
water, onion, vinegar
and multiple ingredients. New Product
- Skip jack tuna with
water, vinegar, soya oil,
and multiple ingredients. New Product
The value-added canned tuna market is highly competitive. Now that major
manufacturers are starting to introduce innovations in canned products, it will be
even more difficult to enter this market. Having said this, there may be small
niche markets for BC canned albacore tuna using either under private labels or
controlled brand labels. Such products may have an advantage since it has
already been established that consumers are willing to pay a premium price for
canned albacore tuna compared with other canned species. Secondly, there
are already some successful examples of private label sales developed by B.C.
albacore fishermen and smaller scale manufacturers. The important issue in such
TUNA VALUE ADDED OPPORTUNITIES
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marketing initiatives has to do with the achievement of economies of scale, the
provision of regular distribution systems and the need for new marketing and
sales materials to promote new niche brands or products. Industry participants
must aggressively pursue this opportunity.
Taking a cue from the multi-national tuna companies, consideration could also
be given to packaging private label canned tuna with other (Vancouver
Island/BC) regionally produced food items such as cheese, spring water or
various types of bread/crackers. If the cans had a pull top then such packages
could be marketed as a fully balanced "ready to eat" lunch for students or other
niche consumers.
Poke and Other Tuna-Based Condiments
The Pacific Islands, South America, and Asia produce a variety of products from
tuna that are served as side dishes or condiments. These preparations could also
become main dishes with some changes in preparation. As a consequence,
there is an opportunity to expand existing markets and develop new markets for
raw tuna condiments, main dishes and relishes.
In Hawaii, poke is a popular dish, although it is not yet well known outside of
Hawaii. It is made from diced raw tuna mixed with seasonings which include
seaweed, sea salt, green onions, ground roasted kukui nuts, fresh chilli peppers,
Japanese soy sauce, sesame oil, sesame seeds and onions. Poke is a Hawaiian
word meaning “cut crosswise or sliced into pieces”. It is readily available freshly
made in local grocery stores, where the food retailer generally prepares it. It has
a shelf life of up to two days.
A tuna-based relish similar to poke is sold in some delicatessens in the
Netherlands. Cubes of raw tuna fish are mixed with chopped onions, paprika,
soy sauce, oil and bell peppers.
Closer to home is a company called Laguna Tuna that makes two kinds of
gourmet appetizers and pasta sauces. Made with albacore tuna, Laguna Tuna
Original and Spicy combines tomato sauce, cornichons, capers, olive oil and
spices. These items are sold in 6 oz. jars, and are marketed as specialty gourmet
items – as appetizers, speciality toppings, pasta sauces or sandwich spreads.
Laguna Tuna has only a small product line using tuna or shrimp, although the
company is expanding production to include salmon, crab and lobster
ingredients. They market their products through the Fancy Food Fair held each
year in Chicago, New York and San Francisco which is organized and sponsored
by the National Association of Specialty Food Trade.
Mahi-mahi
Around the world, a variety of relishes are marketed which use cubed raw tuna
that is marinated in lemon or lime juice and then mixed with onions, hot chilli's,
tomatoes, coconut and other ingredients used to enhance flavour. Ceviche is a
TUNA VALUE ADDED OPPORTUNITIES
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popular dish from South America that can be made with raw, marinated tuna.
Variations on this recipe are respectively called Oka in Samoa, Kelaguen in the
Marianas, Ceviche atun in Latin America, and Poisson cru in French Polynesia.
In Japan, a sushi topping called Negi-toro is made by finely chopping yellowfin
or bigeye tuna trimmings with vegetable oil.
Italian carpaccio is made with raw tuna rolled very thin and then rubbed with
olive oil and seasoned in a variety of ways.
Raw tuna can be minced and mixed with relishes to produce a coarse textured
Tuna Tartare, similar to the classic French recipe using raw beef. Upscale
restaurants serve small mounds on toast, crackers or greens as appetizers.
Nearly half of the tuna consumed in Hawaii is eaten as Japanese-style sashimi or
as poke. Preferred species include skipjack, yellowfin and bigeye tuna but
albacore is gaining increasing acceptance. In Canada, more work needs to be
done to introduce internationally popular items such as poke or tuna tartare.
Products like poke, negi-toro and ceviche can be processed from lower grade
tuna than sashimi, providing a cost and supply advantage. However tuna tartare
and carpaccio must be made with tuna of the same superior quality demanded
by the sashimi market.
Tuna Steaks
Consumption of tuna steaks is rising in the US and EU, where projected sales
increases of 5 --10% per year over the next decade are expected. Tuna loins are
prepared by cutting frozen steaks to the required thickness with a bandsaw. In
the absence of Canadian figures, proxy data from markets outside Canada
indicates the most popular weight portion consumed in the US is 113 -- 284
grams. EU consumers prefer 1.5 -- 2.0 cm thick portions weighing 100 grams.
centre-cut tuna loins must be used for steaks because the loin tips taper too
much to be useful as steaks. Ideally, HACCP protocols should be used to ensure
quality.
Raw Tuna Loins
The tuna loin market is also increasing. In the US, between 1992 and 1996, the
frozen tuna steak or loin market increased by almost 75%, and there has been a
300% increase in the European Union market for fresh tuna loins in recent years.
Cutting on both sides of the backbone and along the lateral lines that run from
head to tail allows tuna loins to be removed from the main trunk of the fish.
Trimming is then done to remove rib bones.
Japan has exacting standards for fresh tuna loins due to the demands of the
sushi market. Distribution systems must be highly efficient as the shelf life of the
TUNA VALUE ADDED OPPORTUNITIES
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product is only about two days to meet this quality standard. Vacuum packing
or other packaging methods can sometimes extend the life of the product for
either fresh or frozen tuna. Four loins can also be re-assembled in the form of a
tuna trunk so that meat touches meat to extend shelf-life through limiting
exposure to air.
There is a good market for high quality albacore tuna loins, quality is becoming
more rather than less important to consumers. Care must be taken in marketing,
as the use of loins from lower quality tuna could harm the market, resulting in
diminished sales. Processing and regulatory requirements must also be taken into
account. Incoming loins to the EU market must be shipped at less than 7 degrees
centigrade and accompanied by a health certificate from the health authority
in the country of origin. To ensure that histamine levels are not elevated, tuna
loins exported to the US must be processed under HACCP protocols.
Seared Tuna
Seared tuna is being offered more frequently in upscale restaurants in Canada.
Fresh high quality tuna is cut into blocks and after being coated with oils, herbs,
spices or wrappings, all sides of the block are seared at high temperature
leaving the centre raw. The blocks are then cooled and sliced very thin, similar to
the way sushi is prepared. In the United States, consumers have begun to
overcome their reluctance to eat raw tuna through the introduction of seared
tuna by trendy, upscale restaurants.
There are many variations on the ways of preparing seared tuna. For some
recipes, readers are invited to visit the New York Seafood Council's web-site at
www.nyseafood.org. This organization is doing an effective job promoting the
consumption of seafood while encouraging quality standards within the industry.
The Council's web-site is an example of the kind of promotion that needs to be
done to encourage restaurants and the general public to try certain kinds of
seafood preparation such as seared tuna. It is not enough to simply develop and
introduce a product -- it is also necessary to develop effective promotional plans
that support the launching of new products.
Cold smoked Tuna
Low temperatures are used to produce cold smoked tuna. With this method,
unlike the hot-smoking process, fish do not actually cook, but rather, they are
partially dried and the smoke flavours gradually permeate the fish flesh. Tuna
loins or roasts are first soaked in a salt brine or dry salted. Some processors add
sugar to balance the salty flavour. Following brining and rinsing and drying on
trays or racks, the tuna is then smoked for 6 to 12 hours. Sodium nitrate may be
added as a preservative and to enhance the reddish appearance of the
finished product. After cold smoking is complete, the fish are cooled to below
2.5 degrees centigrade and partially frozen to facilitate cutting. Vacuum packs
are the recommended packaging.
TUNA VALUE ADDED OPPORTUNITIES
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Currently, demand for cold smoked albacore tuna appears to be limited. The
highest priced market seems to be in the eastern US with much lower prices paid
in Europe. Sources indicate that the annual amounts of this product absorbed
by the US and European markets are 100 MT to 500 MT respectively. Some
processors offer Kosher-certified products.
Cooking grade frozen tuna loins are usually imported by US and EU smokers from
Indo-China and the Caribbean. Tuna that is rejected for fresh export to Japan is
most commonly used. Special care is required to maintain product safety
throughout the distribution system for this ready-to-eat product, because it is
never actually cooked. Achieving the proper concentration of salt (and/or
nitrate) to inhibit the activity of botulism bacteria is most critical to product
safety. Proper drying is essential, along with adequate sanitation as the principal
safeguard against Listeria monocytogenes bacteria. Temperature control during
the cold smoking process is also critical to health safety. If there is too much
heat, spoilage organisms that compete with and inhibit the growth of botulism
bacteria will not remain alive and active.
Hot Smoked Tuna
In the United States, hot smoked tuna products -- mostly albacore – fill a small
niche market with consumption of less than 100MT/annum. Although restaurants
and gourmet seafood retailers occasionally produce hot-smoked tuna and
market it under private brand labels, the product is mainly marketed as a snack
or in bars as an appetizer.
The hot smoking process for albacore involves first cutting the fish into steaks,
portions or strips and then removing the skin. Brining in salt water or marinades
follows -- to add flavour. Tuna are then rinsed and put on racks and placed in
the smoker over a woodchip fire for up to five hours. The fish cooks during
smoking at temperatures above 63 degrees C and is then cooled to below 2.5
degrees and packaged.
Hot smoked tuna can be used to make sausages, patés and other value-added
products that require additional steps to process. Minced trim-ends from hot
smoked tuna can be easily added to cream cheese, sour cream or other
ingredients to make patés. Smoked patés can be a good addition to a line of
gourmet products, keeping in mind that consumer tastes now tend toward less
salt and moister, more succulent products.
Ready-to-eat hot smoked tuna requires special care to maintain product quality
and health safety. The potential for hazard increases as consumer preference
moves toward a moister, less salty product because salt is the main preservative
in smoked fish. Increased moisture content tends to lower water phase salt
concentration in the finished product, further decreasing the preservative
properties of salting. Histamine is avoided by proper time/temperature control of
raw material. This product is best developed under HACCP protocols.
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The format of this product is well suited to vacuum packages. Vacuum
packaged smoked fish must be clearly labelled with proper handling and
storage information. "Store at less than 2.5 degrees C, "Keep Frozen" “Use after 14
days after thawing” and sell-by dates should be included on all labels.
Tuna Burgers
Tuna burgers generally consist of minced or ground tuna mixed with a food
binder. Spices are also sometimes added to enhance the taste. Burgers are
generally made from trimmings from loin cut ends. When cooked, this product
can be eaten either hot or cold.
Commercially produced tuna burgers are available in the marketplace. Good
quality frozen tuna burgers have a shelf life of up to 12 months if stored at minus
30 degrees C. and up to 4 months if stored at minus18 degrees C.
Markets for tuna burgers include grocery stores, as well as fast food outlets and
other restaurants. Tuna burgers are not readily available in Vancouver Island
markets, and although no market data exists to quantify the precise domestic
demand, it is very likely that a strong production and marketing opportunity exists
for this product. Properly branded and packaged, tuna burgers should be of
great interest to consumers.
Tsukemono
Tuna Tsuskemono is most commonly made with skipjack tuna or billfish. In Japan,
most fish retailers sell it. Because it is baked, Tsukemono has a longer shelf life
than raw tuna. It could also be made with albacore tuna.
Production involves first filleting the tuna, then removing the skin, bones and
boiling the meat. Large fillets are cut into smaller pieces, then miso (fermented
soy yeast) or sake-kasu (residue of rice wine fermentation) are added. After
twenty-four hours the small fillets are cured in a seasoning consisting of soy sauce
and sweet sake (mirin) for several days. Finally, the fish is coated in sesame seeds
then wrapped for sale to consumers.
Tuna Jerky
In the last ten years companies in southern California, Guam, Hawaii and other
countries in Southeast Asia have all begun producing tuna jerky. While it has yet
to gain the same level of consumer recognition of beef jerky, markets for tuna
jerky are now well established.
Production costs for tuna jerky tend to be high and there is competition with
better known snack foods in the dried snack market. Tuna jerky has been most
successful as a bar snack item, because consumers increasingly prefer moister
and less salty products over salty, hard-to-chew products.
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Yellowfin and skipjack are the most common species used commercially to
make tuna jerky. Albacore is sometimes used in smaller, local production. To
make jerky, bones and skin are removed from fresh or thawed tuna loins. Then,
the blood meat is removed and frozen to make slicing into pieces about 5 mm
thick. A marinade is used to dip or soak the slices. Ingredients may include salt,
sugar and soy sauce. After drying, either in sunlight or an oven, individual pieces
are cut and trimmed. A typical strip is about 15 mm wide and 100 mm long.
An example of a company that has successfully marketed tuna jerky is Snack
Masters, a company based in Northern California. This company has been in
business for almost twenty years. It markets a comprehensive range of jerky
products made from salmon, ostrich, turkey, beef and tuna. One of the key
messages that the company uses in its marketing and promotional literature is to
emphasize the nutritional qualities of their product and how it fits with the healthy
lifestyle that North Americans are trying to lead. This approach has paid off in
sales. Moreover, the company has gradually been able to expand its distribution
from health food stores and fitness centres to more mainstream, grocery and
convenience stores.
The tuna jerky that SnackMasters makes is made from Ahi tuna fillets. The
advertisements for the product emphasize that no preservatives, artificial colours
or flavour enhancers are used. It is a fat free gourmet snack product.
SnackMasters is successful because they are aligning their products with lifestyle
purchases. This is the kind of approach that must be taken by developers who
want to introduce new albacore tuna products. It is important that market trends
and consumers be thoroughly understood. This requires research and good data.
As SnackMasters demonstrates, product development is successful when it is
based on good research.
Tuna Candy
Tuna candy or tsukudani has been produced in Japan for many years. In Japan,
tsukudani is made from bigeye, skipjack and yellowfin. There is only small-scale
private production of candy made from albacore. A wide assortment of other
marine life such as shrimp and eel are also used.
Tsukudani means, "seasoned product". Seasoning syrup is used to cook small
pieces of tuna until nearly dry. The process steps for making tsukudani are as
follows: beginning with frozen tuna, blood meat, skin and bones are removed
and then the loin muscles are cut off and boiled before smoking. Previously
steamed loins are also used. The flesh is then cut into small squares (about15
mm). Cooking in a flavouring of soy sauce, sugar and other seasonings follows.
Later, pieces of fish are processed until almost dried by blowing hot air over
them.
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Distinctive packaging supports the marketing of tsukudani as a novelty snack
food. Boxed presentation gifts of tsukudani are popular in Japan where there is a
tradition of gift giving with food items. Boxed sets are priced at between $25
and $35.
Cooked Tuna Loins
Cooked tuna loins are used as an intermediate material for tuna canning.
Cooked loins are not as uniform in appearance as quarter loins from raw tuna
since they are removed from the fish after cooking. It is sometimes cheaper to
separate loining and processing, since removing the fat muscle from the
backbone is 75% of the labour cost in canned tuna production. Importing precooked loins processed in low labour rate area is a solution used by canners in
high labour-cost areas.
There are eight processing steps to make cooked tuna loins: evisceration;
racking by size; pre-cooking; cooling, removing the head, tail and skin;
separating the bones and blood meat from the loins; vacuum packaging and
freezing; and finally boxing or palleting for shipping to canners. Useable loin yield
is about 40% from whole skipjack. Canners in Italy, France and Spain, facing high
labour rates, import a high volume of pre-cooked loins from the Indo-Pacific
region, where labour costs are low. US packers, on the other hand, are
decreasing their import levels. Vancouver Island processing plant experience in
2000 indicates that with albacore tuna (of typical size delivered during July
through September) useable loin yield is rarely more than 40%.
Tuna Sausage and Ham
In 1997 two Thai companies joint-ventured to develop and market a new
product line of tuna and ham sausages. Marketed under the name Ventuna
Sausages, the joint-venture offers sausages in a range of twelve distinctive
flavours including garlic, spicy and regular. The products are being marketed as
a ready-to-eat convenience food that is low in fat and cholesterol, high in
protein and containing no MSG. The products are made from yellowfin tuna.
Ventuna sausages began to be marketed in the United States, Asia, Europe and
the Middle East in the late 1990's. Products are shipped frozen and sold through
grocery stores and institutional markets in attractive vacuum packed wrappers.
Once frozen the products have a shelf life of about two years. Unfrozen, the shelf
life is thirty-five days. The products can be fried, grilled, boiled or eaten as is from
the package. Overall customer response to the product line is unknown at this
time.
Despite the company's claims that Ventuna sausages are the first of such
products to be introduced to the marketplace, other reference materials
indicate that tuna sausages began being produced over fifty years ago in
Japan. Indeed, about 100 MT of fish sausage per day (750,000 pieces of 130g
TUNA VALUE ADDED OPPORTUNITIES
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each) is produced in various Japanese factories. These lines of products, mainly
using skipjack, yellowfin, bigeye and a small amount of bluefin are now being
marketed worldwide.
Half Dried Tuna Loin
In Japan half-dried tuna loin is known as Namaribushi. It is said to taste like
canned albacore tuna and keeps its quality for a long time without refrigeration.
Using skipjack, it is produced as a by-product of making katsuobushi, although it
is sometimes made on its own in other plants where katsuobushi is not made.
A simpler process is used for making namaribushi than for katsuobushi. Skipjack
tuna is filleted and washed in water, then light baking follows in an electric
baking machine that bakes both sides at once. The product is then cooked at
80 to 90 degrees C. in water for 50 minutes. An electric fan then removes
moisture, after which gentle drying takes place over wood racks until the
moisture content is lowered to about 60%. Smoke-drying for about 60 minutes at
85 degrees C. follows. The loins are packaged and sold in polystyrene trays
covered in clear plastic film. Marketing locations in southern Japan include
supermarkets, retail outlets and neighbourhood stores.
Tuna Oil
Fish oil contains nutritionally and medically important fatty acids called
docasahexaenoic (DHA) and eicosapentaenoic (EPA) acids. Marketed as a
food additive or nutritional supplement, DHA is reported to improve brain
function, reduce cholesterol, improve visual acuity, lessen dyslexia effects and
reduce problems associated with dementia, arthritis and Alzheimer's disease.
Albacore tuna are especially rich in DHA and EPA.
Tuna oil is becoming an important by-product of the tuna processing industry.
Unused parts of tuna that are processed for the tuna canning industry are used
to make refined oil -- which has a low odour and light yellow colour. Usually only
the head, meat and bones, but not the viscera, are used in tuna oil production.
Tuna livers are not processed into oil. Crude tuna oil is produced from tuna waste
by steam followed by purification. This first-stage oil is darker colour that the
finished product. Oil separation equipment at canneries is used to extract water,
solids and metal ions as quickly as possible. The product is then shipped to a
refinery for a further four-step processing which involves neutralisation, bleaching
and winterizing to remove crystallized fats, followed by a deodorizing process to
remove odour-causing contaminants. It is then either shipped in bulk or
packaged and sent to end users, including the pharmaceutical industry and
other manufacturers.
Today’s manufacturing process uses advanced technology to reduce
manufacturing costs. One plant, using less than ten employees on the
production line, is capable of producing 2000 MT of tuna oil per year. State of
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the art equipment is required, including, stainless steel vats and retainers,
vacuum processing tanks and related pipes and holding tanks.
Detailed information on market trends for tuna oil is not readily available, but
industry sources are reporting that the demand in Japan has levelled off in the
past few years since the period from 1991 to 1993 when it was doubling annually.
In the United Kingdom, a steady increase in sales of tuna oil is being
experienced. As a result of advertising campaigns by manufacturers, wholesalers
and retailers, sales in Australia and the US are also beginning to show
improvement. Wholesale prices of refined tuna oil are now about US $50/kg for
volume purchases and US $60/kg for smaller quantities. In the United States.
Recently, Clover Corporation Ltd. announced that it has received "Generally
Regarded As Safe" (GRAS) status from the US Food and Drug Administration for
five of the corporations' tuna oil products which are destined for sale in US
markets. Four of its pharmaceutical grade tuna oils and a trademarked product
called "Driphorm" used in baked goods, muesli bars and cereals have all been
approved. These new approvals and Clover's alliance with a new distributor are
expected to boost its product sales both in the US and in other overseas markets.
Pet Food
A major use of blood meat (dark muscle) is to make or give flavour to pet food.
This dark meat next to the backbone is trimmed from tuna before it is canned for
human consumption. Gourmet pet food, which is essentially human grade tuna,
is produced in limited quantities from whole tune loins.
Canned pet food tuna is processed the same way as other tuna and there are
dozens of formulas which may include being packed in water or jelly with vitamin
and mineral pre-mixes, vegetable oils, anti-oxidants, colouring agents and
sometimes pulverized tuna frames to boost calcium content.
Pet food products that are tuna-based account for about 5% of canned pet
food in most major markets. Blood meat (dark tuna muscle) accounts for about
12% of raw tuna butchered for canning and is the main ingredient of tuna-based
pet food.
There may be opportunities for the Canadian albacore tuna industry for the sale
of private label tuna catfood to niche markets.
Dried Fish Sticks
Katsuobushi, or dried fish sticks, is a uniquely Japanese product that has been
produced for about 250 years. Production can be found along the entire Pacific
coastline of Japan, although the three main areas of production are Satsuma
(Kagoshima Prefecture), Tosa (Kochi Prefecture) and Yaizu (Shizuoka Prefecture.
Each production area has its own methods of processing. Species used include
skipjack, albacore and bigeye.
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Katsuobushi is time-consuming to produce and involves eleven steps that can
take as long as three months to complete. The process is as follows: fish are first
butchered, beheading it, eviscerated and then filleted. Fillets are placed
horizontally on a tray and boiled. Bones are then removed and the trays are put
into cool water to lower their temperature. A paste made from leftover waste
muscle is used to manually fill any cracks that appear in the surface of the fillets.
A second boiling and more cooling follows. The boiling and cooling process is
repeated many times. Eventually, fillets are placed in the open air to dry for
several days. The dried fillets are then placed in a box for 3-4 days until their
surface becomes soft. Special knives are then used to shave the fillets. By this
point, the surface has taken on a brilliant reddish brown colour. A second airdrying follows and the product is then placed back into boxes. Moulds, called
first mould (penicillium and aspergilius) begins to grow on the surface about 14
days later. The fillets are dried once more in the open air. The moulding process is
repeated four times in all through second third and fourth moulds. The final
colour is light brown. The hardened strips, which have been through the fourth
moulding, are distributed as fully seasoned katsuobushi. Production and
consumption of katsuobushi is estimated at about 185,000 to 187,000 MT/annum.
The fat content of the fish is an important factor that determines katsuobushi’s
appeal in the Japanese market. Above 4-5% fat content produces fish sticks
considered oily and bitter tasting to consumers. A lower fat content of only 1-2%.
is preferable. Quality also depends upon an optimum degree of freshness. The
muscle in extremely fresh skipjack will contract with cutting, making shaping very
difficult. Fish that is not fresh enough will result in softening of the muscle, causing
the shape to become elongated. Categories of katsuobushi depend on the size
of the skipjack used. Honbusi is made from skipjack over 2.6 kg. Kamebusi is
made from skipjack between 1.5 and 2.6 kg and Warebushi is made from
skipjack under 1.5 kg.
Katsuobushi is sliced and packaged in small plastic bags where it is sold in retail
grocery stores in Japan. The product is used in Japanese households for broth or
seasoning.
Seasoned Tuna Viscera (Katsuo Shiokara)
Salted and fermented tuna viscera are called Katsuo Shiokara in Japan, which is
the major market for this product. With this product, Japanese tuna processors
are able to make good use of all possible parts of the fish, including scrap and
waste material from canning and other types of processing. Speciality food
stores in other countries market small quantities. The price tends to be around
U.S. $8.00 per 200 grams. There are a number of product types, differentiated
mainly by sugar content.
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Viscera (stomach and intestines) must be kept chilled while handling and
processed under strict hygienic conditions, as they are high in proteolytic
enzymes. The bottled final product must be kept refrigerated. Most production is
done by hand and is therefore labour intensive.
Stomachs and intestines from small skipjack tuna, which is preferred for this
product, are collected from processors that can and dry those fish. The viscera
from the skipjack are cut open and weighed, washed and drained. Salt is added
at a rate of about 15% to 20% of the weight of the viscera. Curing for several
months in wooden vats follows, with surface liquids being removed periodically.
Sugar is added, which imparts a red colour. Finally, the product is minced,
bottled and kept under refrigeration.
Meat Analogs
Tuna burgers, loafs and cutlets are manufactured from minced tuna muscle. A
variety of meat analog products promote tuna's resemblance to meat. An
example is Sea Chef's (Israel) line of tuna-based beef analogs. Reconstituted
tuna products must be virtually indistinguishable from comparable meat analog
products in both appearance and taste. They should be moist and juicy, yet
more nutritional than meat.
A similar process to the manufacture of shellfish-like Surimi products (e.g. artificial
crab) is used to make these products. Trimmings from the tuna loining and
steaking process are used. Raw tuna muscle is ground and mixed with common
additives including cellulose to create a moist, juicy texture and soy protein is
added to bind ingredients. The products are flavoured, shaped and cooked and
then packed and frozen. Currently those products are sold into the US and to the
kosher market in Israel. The US market has not been fully tested or evaluated and
estimates of market size or potential are not available.
Only tuna burgers have achieved market success in the US. Most other meat-like
products made from minced tuna muscle have not been successful and have
been discontinued due mainly to high production cost and quality assurances
problems.
In the US, the alternative burger market has grown rapidly following outbreaks of
food-borne illnesses attributed to the beef industry. Tuna burgers are a byproduct made from trimmings in the tuna loining and steaking process.
Identifying satisfactory binding ingredients was essential for the success of those
products due to tuna flesh’s low natural elasticity. At least one Israeli processor
has been successful in targeting the kosher market for meat analog products
manufactured from reconstituted tuna. This market niche may have some
potential in the US.
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Tuna Calcium
Calcium production from tuna was triggered in Japan in 1977, after the release
of a growing number of studies indicating that children with unbalanced diets
were acquiring illnesses such as bone failure from calcium deficiency. The Yaizu
Food Processing Complex in Japan began production to both make better use
of tuna resources and to address this critical public health issue. Profits were seen
as a secondary motive for production.
Tuna calcium production has good future potential in Japan because of its
increasing use in school lunch programs and by the confectionery and candy
industries. Only one grade of tuna calcium is produced at the Yaizu plant, a rate
of about 100kg of calcium daily by the mid 1980’s.
There are18 complex steps to produce tuna calcium. Skipjack is boiled (as part
of the katsuobushi process) and then bones are removed and go through
several crushings, protein and enzymes are next removed, sterilization and drying
take place, followed by grinding, sorting and packing.
The Yaizu Fish Processing Complex Tuna calcium sells directly to the school
system, to the confectionery and candy industry and to the public from its plant.
The calcium is packed in containers of 500g, 1 kg and 10 kg.
Tuna Dumplings
Tuna dumplings are very popular in Japan and generally known as Toroman
steamed buns. "Toro" refers to the belly portion of tuna with its high oil content
and "man" means “bun”. The Chinese produce a similar product called bautsu in
Chinese and manju in Japanese. The main producer is the Misaki Maguro Club in
the city of Misaki, a large tuna port south of Tokyo. This highly popular product is
used to promote both the cities of Misaki and Maguro (Japanese for tuna) to
tourists and to local residents alike.
Bigeye, yellowfin and Bluefin are the main species utilized. The small but
increasing market for Toroman dumplings has the potential for significant
increases in the future, as many manju type buns are popular throughout Japan.
Recent prices have been US $8.90 for five dumplings in Misaki stores. Delivered to
the Tokyo area, the price increases to about US $12.00 for a minimum order of
five buns.
Tuna Eyeballs
Seven Japanese food-processing companies have started canning tuna
eyeballs to meet an increased consumer demand which followed the release in
1991 of research results indicating that tuna eyeballs contain high amounts of
the polyunsaturated fatty acids DHA and EPA. Tuna eyeballs are ten times richer
in DHA than the rest of the tuna. Claimed to be "brain food" these acids are
believed by some to both lower cholesterol and increase intelligence in those
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who consume them. Japanese parents of teenagers and young adults
preparing for high school and university examinations are the biggest purchasers.
Some industry analysts believe demand will eventually fade as the current craze
may be just a temporary fad.
Yellowfin, bigeye and bluefin are the main species used. Prices lately are about
US $4.30 per for a can of three eyeballs, a drop of about 50% since 1997. The start
of the tuna eyeball craze initially resulted in high prices and in 1994, one
company was marketing two cooked eyeballs US 28.00. Tuna eyeballs are sold
canned, pre-cooked, vacuum packed, fresh and frozen.
Tuna Cooking Juices and Powder
Development has been underway for about ten years to produce a soluble
powder from skipjack cooking juices. Tuna powder made in canneries in
Thailand and by researchers in Korea can be used in animal feeds and
aquaculture by using flavour to encourage fish and shrimp to feed. Skipjack
powder is over 60% protein, 10-20% fat and contains less than 10% moisture.
Hydrolysed cooking juices are filtered through charcoal then spray dried into
powder. Korean researchers hope the production of powder from waste juices
will help prevent pollution as canneries currently discharge up to 30,000 tons of
juices per year in Korea alone.
Skipjack juice is retailed in plastic bottles in 250 cc, 500 cc or 1 litre sizes. Powder is
packed in foil bags and boxed.
Skipjack is steam cooked, followed by enzymatic hydrolysis of proteins and then
heat activation for 5 minutes. Charcoal treatment and filtration is then followed
by spray drying to extract the powder.
Tuna Extract
Tuna extract is used as a seasoning in marinades made from dried tuna shavings,
in soup stocks and in western style soups, sauces pastes and broths. It is also
added to beef extract, surimi (fish paste) and marine products. It is popular with
the instant and snack food industry as a flavour enhancer and has been a
traditional flavouring agent in Japan for many years. Made in Japan and
Thailand, pressed tuna juices are used to make this dark brown viscous liquid.
Japanese manufacturers sell to secondary food flavouring companies, which in
turn sell the extract to restaurants, supermarkets and retail stores.
Markets in Japan for tuna extracts saw increases of 5-% since 1983 but levelled
off from 1996 onward. Increased volumes are not expected by industry analysts,
except where extract is used in miso (soybean paste) tare (a type of sauce) and
tsuyu (liquid used as soup for noodles). In Japan, skipjack is used for this purpose.
Perhaps extracts can be produced from albacore tuna.
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Ways of Financing Future Product and Market
Development Initiatives for the Albacore Tuna
Industry
Research As A Prerequisite For Industry Growth
The Canadian Albacore tuna industry is small in comparison to that of the United
States – perhaps less than 20% of the size of the American industry. Thus, the
“unit-basis” support a Canadian industry must have to compete – from
fishermen, processors, brokers, distributors, retailers, and individual consumers –
must be large in comparison to that provided to the U.S. Albacore tuna industry.
To put this idea into perspective, if each U.S. citizen consumed 0.35 pounds of
Albacore tuna in 1999, that amount would have successfully used the total
landings by U.S. fishermen. Had Canadians consumed the same amount of
Albacore tuna per capita in 1999, the Canadian-landed catch would have had
to amount to over 10,000,000 pounds. In fact, the recorded landings were only
about half of that amount. It could be postulated that the fish-eating patterns in
the U.S.A. and Canada are not very different and therefore there could be a
market in Canada for a significantly larger amount of Albacore tuna.
Why is more Albacore not sold in Canada and eaten by the country’s
populace? Part of the answer must surely be the lack of sophisticated marketing
being done with tuna in Canada. One has only to examine the promotional
literature available in various West Coast U.S.A. locations where tuna is sold – or
to visit any of the Websites of the large American tuna companies – to
understand why Americans eat more tuna. Advertising and promotion sells! And
that in spite of the fact that much of the Canadian caught Albacore tuna is of
higher quality than fish delivered by U.S. based boats (some U.S. buyers in
Oregon pay a premium to Canadian boats landing fish at their facilities because
the quality of fish is demonstrably superior).
Thus, for the Canadian Albacore tuna industry to become strong, increase its
market share, and remain continuingly viable, there is a need for the industry to
spend more in Canada on product development and marketing. Both of these
activities require research and funding support. How might this be undertaken?
A Model for Future Research Initiatives
An examination of an innovative development model from the United States
provides a potential strategy for the Canadian albacore tuna industry. The
Western Fishboat Owners Association (WFOA) – a California-based organization
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of tuna fishermen (to which many Canadian Albacore fishermen belong). has
implemented an effective system to finance research initiatives that support
product and market development planning that benefits the industry as a
whole.
Primarily, in order to ensure that it had the necessary scientific data to be able to
answer questions related to industry development, the WFOA formed the
American Fishermen’s Research Foundation (AFRF) in 1971. The Foundation's
Board of Directors is comprised of 6 industry (cannery) representatives and six
vessel owners. The U.S. National Marine Fisheries Service (NMFS) supplies advisory
representatives to AFRF’s meetings. The Board considers projects submitted for
discussion and funding by its members and from the scientific community. NMFS
supplies scientific equipment for vessels under charter to the AFRF.
The cost of work done by AFRF is paid for through a levy on Albacore catches
landed in the USA – at the rate of $20 per ton by the fishermen (vessel owners)
and $20 per ton by the tuna processors. Additional revenue comes from the sale
of catches caught by boats under scientific charter by AFRF. During 1999, it was
estimated that approximately 15,000 tonnes of Albacore were caught by U.S.
fishermen alone (not including fish caught by Canadians and landed in U.S. west
coast ports) so it can be understood that the amount of money produced by the
AFRF levy is considerable.
Projects paid for through the activities of AFRF in the past have included both
scientific and market-related initiatives:
Science
•
tagging programs to establish migratory patterns of Albacore tuna in the
North Pacific
•
Management Science: data gathering with regard to catch of Albacore,
number and type of boats fishing, catch per unit of effort, fishing days, and
etc.;
•
•
Sea surfaced temperature monitoring and mapping;
Conductivity/Temperature/Depth research.
Product Development, Marketing, and Industry Maintenance
•
Waste prevention/catch management program – onboard handlingfreezing, chilling research, and education;
•
•
Maintenance of a comprehensive web site;
Provision of expert services to WFOA negotiators involved in treaty talks
among the Albacore fishing nations.
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Because some of the issues facing the Canadian Albacore industry are very
much different than those of the WFOA – the BCTFA is of the opinion that a
separate and independent Research Association must be established in
Canada.
A Canadian Albacore Research Association
The Canadian Albacore Research Association could take the model of the AFRF
and adapt it to the specific needs of the Canadian Albacore industry – as
follows:
•
A Board of Directors would be set up to include equal representatives of
Albacore boat owners (i.e. from those licensed vessel owners who earn at
least 75% of their yearly income from fishing Albacore tuna); and the
Canadian Albacore industry (canners, processors, brokers, and buyers). Both
DFO and the B.C. Ministry of Fisheries would be invited to each send a
technical advisor to all Board Meetings.
•
The Board of Directors would meet three times each year: in November, after
the Albacore fishing season is finished for the year; in February; and again
immediately before the Albacore fishing season begins again, in May.
•
Proposals for scientific research as well as for product and market
development initiatives – which could be of any description so long as the
purpose of each was to foster the advancement and well being of the
Canadian Albacore industry – would be submitted to the Board at any of its
meetings. The Board would consider each proposal as to its merits and its
possible contribution to the health of the Canadian tuna industry. Those
proposals accepted by the Board would be funded by the Association,
which would design and supervise appropriate contracts to complete the
works involved.
Funding for the work of the Association would be by way of a levy of $25 per ton
of Albacore delivered to Canadian ports – to be paid by the vessel delivering; as
well as $25 per ton for Albacore delivered to Canadian ports – to be paid by the
broker, distributor, agent, or processor receiving those fish. Additional funding
would be sought through the institution of public-private partnership
arrangements with both the Canadian Government and the Government of the
Province of British Columbia.
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Research to Be Conducted By the Proposed Association
The Canadian Albacore Research Association could undertake a variety of
research which would be beneficial for the orderly growth and expansion of the
industry. Some examples follow:
•
Instituting a regular yearly test fishery for Albacore in Canadian economic
zone waters – beginning early in the season;
•
Carrying out very specific ocean science within the Canadian economic
zone (some of those activities would include DFO or other government
agency scientific observers/personnel aboard ship):
o
o
o
o
o
o
Tagging of Albacore tuna
Scale sampling
General stock assessment – identification program, by catch assessment
Water temperature, sea condition, weather reporting functions
Further development of a Tuna logbook
Establishment of a general Canadian Albacore tuna data bank – along
with procedures and programs for its easy use by all members of the
industry
Market Research/Market Development and Industry Maintenance
In addition to scientific research there is also some opportunity and need for
marketing research. This too could be conducted by the proposed Canadian
Albacore Research Association.
•
Market research into expanding Canadian consumption of Albacore tuna –
and especially into new/different (than now used for Albacore tuna) portion
presentation, retortable pouch packaging, ready-to-eat tuna meal varieties,
etc.;
•
•
Researching the needs of specialty value-added niche markets in Canada;
•
Researching ways and means to institute best-practices aboard Canadian
Albacore tuna vessels – to institute shipboard HACCP capacity; to generally
improve the quality of Canadian caught Albacore tuna;
Development of educational materials about the Canadian Albacore tuna
industry – to use in awareness campaigns via TV, radio, in schools, with
consumer groups and distributors, and with other Canadian marketing groups
(e.g. the Seafood Marketing Council).
Summary
Using the model of an independent Canadian Albacore Research Association
and with the assistance of some public-private partnership funding initiatives, the
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BCTFA is of the belief that research and development is a necessary condition
for industry growth.
•
The Canadian Albacore tuna industry must fund market research and
market development initiatives to ensure the domestic market for high
quality Albacore tuna is increased significantly in the medium term.
•
Research, product development and marketing initiatives could lead to
substantially increased Canadian consumption of Albacore tuna within a
ten-year period.
Conclusions and Recommendations
Concluding Comments
This report has provided a preliminary assessment of the value--added
opportunities for Canadian-caught albacore tuna. From the research presented
in the report, the conclusion is that there are many opportunities for future
product development. However, there are some significant issues and
constraints that must first be addressed before new product/market
diversification can be further explored.
The recommendations provided in this section consider the avenues that are
open to the Canadian albacore tuna industry in order to address current
impediments to product and market diversification. There is a need for more
research and information gathering. There are also some actions to be taken by
the BCTFA along with government and industry to promote new product
development, to introduce new products, and to encourage increased
consumer awareness and demand.
The BCTFA favours the establishment of an independent Canadian albacore
tuna research capacity – in the way of forming an entirely Canadian Research
Association. A Canadian Albacore Research Association could take the model
of the AFRF and adapt it to the specific needs of the Canadian albacore
industry. The Canadian Albacore tuna industry could fund market research and
market development to ensure the domestic market for high quality albacore
tuna is increased significantly in the medium term.
Four factors that impact the successful marketing of value-added albacore
tuna: supply issues, customer demand, lack of product development and
industry organizational issues.
An examination of current market trends provides the clues for future
development opportunities for an expanded range of albacore tuna products.
The best opportunities will be found in the specialty, ready-to-cook,
convenience, snack food, and pet food markets.
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By taking action on the seven recommendations for research and product
development provided in this report, the BCTFA will establish a firmer foundation
for an industry-wide product diversification strategy. Such a strategy would
require not only new product developments but also marketing plans and tools
that will be needed to "push" products to consumers.
Recommendations for Future Research
•
The BCTFA must undertake further research into albacore tuna value-adding
opportunities. It could send a delegation of members to Japan, Hawaii and
possibly other countries in Asia-Pacific region to acquire more first-hand
information about the many value-added tuna products produced in those
countries and described in this report. Such a mission would enable the
BCTFA to make contacts on behalf of industry and explore opportunities for
joint (international) product development initiatives. The information acquired
through contact with foreign trade organizations, industry associations and
businesses would be invaluable in terms of developing a template for a
value-added Canadian albacore tuna industry.
•
In order to stay fully abreast of developments in the global tuna industry, it is
recommended that the BCTFA purchase a membership with INFOFISH. This
agency is based in Kuala Lumpur, Malaysia, but its information network
includes organizations from Africa, the Arab countries,, and Latin America. Its
working language and publications are in English.
GLOBEFISH is a resource offered through INFOFISH's network that provides
databanks, search services and general economic data about tuna and
other world fisheries.
INFOFISH offers a rich resource for information about the global tuna industry.
In order for the BCTFA to be networked into this resource, a budget would
need to be identified for joining INFOFISH. This budget would also provide for
the purchase of many of the publications INFOFISH has produced which
would be of pertinence to BCTFA members.
Not enough is known about British Columbia markets for tuna. There is no data
that quantifies consumption levels, retail trends or overall consumer interest in
tuna. Such information would be valuable for the BCTFA and could be gathered
from Statistics Canada sources as well as by surveying existing provincial seafood
outlets. To gather such information, a reputable accounting firm could be hired
to develop a reporting form to be distributed to a pre-selected sample of
seafood outlets. The information gathered would be aggregated by the
accountant and shared with the participants. In this way, benchmarks would be
developed by the industry -- and retail outlets would not have to share
confidential information. The resulting report could be published annually (or biannually) so that trends could be developed
TUNA VALUE ADDED OPPORTUNITIES
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•
over time. Improved baseline information gathered through such methods
would help fishermen to better align their commercial harvesting efforts with
market demands; and would also provide a planning tool to gauge the
success of new product introductions and increased marketing efforts.
Recommendations for Future Actions
•
Many of the dishes that are prepared with raw tuna and relishes could be of
interest to Canadian sushi makers and other restaurateurs because such
dishes utilize tuna trimming. In order to acquaint restaurateurs with the
information acquired through this report, and in order to encourage
additional sharing of information, it is recommended that the BCTFA sponsor
a product development workshop. The workshop would be held at a central
Vancouver Island location – such as Nanaimo -- with appropriate kitchen
facilities. During this day-long workshop, the morning would be spent
presenting new product information, while the afternoon session would
concentrate on showing samples of new products. For products that require
a long preparation time, the BCTFA could pre-arrange preparation with
restaurants. For this workshop, the BCTFA would provide the raw tuna for use
by chefs and restaurateurs. Funds could be leveraged in order to stage the
event and ensure that it was well documented. The workshop would
encourage increased information exchange and provide a forum for future
product/market planning.
Some product development tests must be completed to determine that the
products identified in this report could be commercially produced in Canada.
For such product development and testing pilots, the BCTFA can play a role as a
facilitator -- encouraging industry participants to work together. Given the
current circumstances of the Canadian albacore tuna industry, it is unlikely that
any one facility has the resources to singly advance such product testing and
development. However, an alliance of three or four manufacturers could be an
effective way to explore new product options. Although seafood product
manufacturers do not lack the technical expertise or creativity to develop new
products, the marketing costs to introduce new products are usually large, which
tends to inhibit their efforts. The BCTFA could leverage funding to help such
initiatives. Such partnership arrangements could also be negotiated by the
BCTFA with several specialty seafood retail stores to encourage market growth.
Governments are more likely to contribute to an alliance of interests rather than
"one-of-kind" pilots. The formation of public-private partnership ventures, which
would advance a series of three or four product development trials, could be a
very attractive initiative for the albacore tuna industry. Both the provincial and
federal governments have vested interests in assisting projects connected with
off-shore tuna fisheries because they represent as yet “untapped frontiers” for
seafood product development. For this reason, those governments may be
prevailed upon to support product development tests sponsored by the BCTFA.
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•
The regulations concerned with specialty food manufacture in Canada can
be quite onerous, especially to smaller "cottage industry" companies that are
attempting to pilot new products. The regulations for product manufacturing
as well as packaging and labeling can be overwhelming. This too is an area
where the BCTFA could play a role, gathering together key contacts as well
as information about the regulations and guidelines for product manufacture
and marketing.
•
Opportunities exist for selling local or regional brand canned premium
albacore tuna as part of a "ready-to-eat" lunches or mid-sized snacks. The
BCTFA could play a role identifying and/or qualifying regional foods or
beverages that could be marketed as such packaged products. Other
product development requirements would include packaging, distribution
and promotional support.
•
New marketing materials must be developed to ensure that consumers fully
appreciate the full uses and versatility of albacore tuna. As well, new
product positioning must to be considered so that consumers will come to
appreciate albacore tuna as a healthy and cost effective food.
The BCTFA is willing to take a leadership role to develop a product diversification
strategy on behalf of the Canadian albacore tuna industry. This will require
matching public investments to effectively co-ordinate industry participants in
support of new products and new market developments. Through the
implementation of such initiatives, the industry would grow and more
employment and income opportunities would be created. To achieve long-term
positive results, a long-term strategy must be matched with long-term
commitments on the part of both industry and governments. Future benefits for
the Canadian albacore tuna industry and for the British Columbia economy lie in
a partnership approach to growth.
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ACKNOWLEDGEMENTS
This report was made possible through funding provided by The Coast Wide Initiative (part
of the Fisheries Legacy Trust), the Planning and Partnership Program of Fisheries Renewal
B.C., and the B.C. Tuna Fishermen’s Association.
Community Futures Development Corporation (Cowichan) provided invaluable assistance at
the beginning stages of this project. During the project CFDC provided administrative
functions, including the operation of the project bank account and doing the accounting for
the project. Special thanks are due to Mr. Ron Canty, the CFDC Fisheries Adjustment Coordinator and to Ms. Linda Mabon, who kept the accounts in order.
Many thanks are due to Sandy Argue, Department of Fisheries and Oceans, Victoria – for
his interest in the subject of this report and for his help at locating hard-to-find sources.
Larry and Linda Teague, both of the BCTFA, are also due thanks for their cogent comments
about the work as it progressed.
This report is the work of
New Options Consulting Corp.
P. O. Box 414, Duncan, B.C. Canada V9L3X5
Telephone/Fax - (250) 715 - 1450
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