Expanding Processing Methods and Marketing of Value-Added Tuna Products from Countries in the Asia-Pacific Region
The main objectives of this project were the promotion of export processing and domestic marketing of value-added tuna products from island countries in the Asia-Pacific region. Nine tuna fishing and processing companies from Papua New Guinea (PNG)and six from the Maldives participated in the project from March 2003 through 2006.
Promotion and export of value-added tuna products requires the adaptation and transfer of appropriate technologies for processing. This in turn requires investment for plant upgrades and worker training. The technology, information, and operational lessons learned in the planning and implementation of these production stages were disseminated broadly through publications and national workshops in Sri Lanka, India and Pakistan.
Participating companies from PNG succeeded in developing new products and thereby significantly increased tuna exports. In 2005, orders of tuna had increased to 17 million U.S. dollars from less than a million the year before.
Development of products and promotion of exports
Initial market feasibility studies demonstrated profitable promise for various value-added tuna products whose future forms, packaging and marketing would require specific changes and refinements for optimum market penetration.
Techno-economic feasibility study
Five expert consultants conducted studies (2003) of opportunities for tuna value-added products in the world’s three major markets – US, EU and Japan – based on visits to the markets, export prices, INFOFISH data and information gathered from processing establishments in PNG, Maldives and elsewhere in the region.
Results indicated varying degrees of capacity among beneficiary companies to undertake production of value-added tuna products. Since the primary raw material produced by the Maldives is skipjack, an additional assessment of prospects for value-added skipjack products was undertaken. Information gathered included market preferences for products, pricing and packaging, which consisted of labeling and display of products.Marketing channels were identified and contacts were made with potential buyers.
Value-added products chosen for pilot production were: tuna loins, steaks, cold smoked tuna (whole), cold smoked tuna slices (in consumer packs), tasteless smoked tuna and tuna balls. Tuna off-cuts, process waste and by-catch were used to make tuna sausages, tuna burgers and tuna cake/ paste.
Pilot production trials of these products in PNG required purchase of a smoking kiln, plus tasteless smoke cylinders and regulator. The first national workshop at Port Moresby in2004 was attended by over 70 participants. A follow-up industry seminar was held after the pilot production trials of new products to assess overall potential for export of the new value-added products. Their packaging, presentation and marketing were examined, quality and safety issues were taken into consideration and relevant requisite training programs were explored .
Production trials in the Maldives,delayed due to the December 2004 tsunami, were carried out in May of 2005. This INFOFISH workshop, held at the MIFCO tuna loining plant in Kanduri Oya Giri Village, demonstrated the full production cycle, from raw material handling and processing, to packaging and presentation of 16 value-added tuna products. The workshopincluded a wide range of tuna products: fresh and frozen, gilled and gutted,sashimi tuna,tuna loins, “saku” blocks,“poke” cubes, tuna jerky, andminced tunafoods, such as tuna sausage, tuna salami, and even tuna pet food using cut-offs and process waste.
During these two production trials, 70 workers were trained in the production, packaging and presentation of 20 new value-added products. The process for creating these products was demonstrated to 58 industry and government participants. Under the supervision of INFOFISH consultants, sample packs of value-added products were produced to be presented at seafood trade fairs in Brussels and the U.S.
Four companies from each country participated in these trade fairs between2004 and 2005. The fairs proved to be extremely useful as contacts were established and products were subjected to consumer acceptability studies necessary for participation in the markets. Brochures and product lines from all 15 beneficiary companies involved in the project were disseminated to buyers and visitors. Packaging and display methods of other producers were observed and noted. Lastly, information was gathered on market preferences for products, pricing, and on marketing channels.
Participation in the international trade conference and exhibition in Bangkok in 2004 and 2006, drew over 550 industry leaders from 55 countries and gavecountries in attendance global exposure to far-ranging markets, ideas for product possibilities as well asmarketing and contact opportunities.
INFOFISH facilitated further buyer-seller relationships for a total of 42 companies in the region while 62 companies received technical support in processing and quality assurance. 8 PNG participating companies secured EU approval and commenced exports. In addition,Maldivian companies began providing EU companies with chilled tuna loins and canned fish. As a direct result of product and market diversification developed in this project, value of exports from 5 of the beneficiary companies surged from US$ 582,800 in 2004 to US$ 7.5 million in 2005.
Dissemination of project findings
In addition to the pilot production and marketing activities, INFOFISH further enhanced opportunities for producers through continuous monitoring of the global markets and export activities. Broader industry assistance came through targeted dissemination of project findings in the form of a comprehensive production manual and a further feasibility study of processing and marketing, compiled and written by project and national consultants.
The manual “Processing, Packing and Presentation of Value-added Tuna Products”, provides practical, step-by-step details for the manual processing of 10 tuna products, and explains processing technology for several products created through industrial scale production operations. This document also provides details onsuppliers and manufacturers of tuna processing equipment and ingredients, tuna species and fishing areas, product specifications,and quality parameters (HACCP).
The “Feasibility Study on Export of Value-added Tuna Products” explores the technical and economic feasibility of 7 selected products. Utilizing the INFOFISH database as well as information gathered from producers in PNG, Maldives and elsewhere in the region, the study analyzes the full production cycle of each product in terms of local conditions, environmental standards, cost, export prices and economic factors in producing countries and potential markets.
Investment by private sector for processing and marketing
Throughout the project’s different stages of implementation, processors adopted techniques for handling, processing, packaging, and quality control along HACCP lines required for product participation in the world’s three major international markets. The transfer of technology required to adequately improve processing equipment and plant layout, laboratory facilities, personnel training, product promotion and other aspects of marketing required additional funding: INFOPESCA helped ventures to secure funding from regional financing/ lending institutions by preparing investment profiles for the following value-added products with demonstrated strong export market potential: chilled whole, round, gutted and gilled tuna; chilled loins; and frozen whole gutted and gilled tuna. The three profiles, condensed into a single composite document, examine project cost, cash flow, and net profit as a percentage of sales of each of the products.
Conclusions
Through value-added product development and participation in trade fairs, this project succeeded in linking exporters from PNG and Maldives with buyers in major international markets. Further product development expanded market access – including inroads into domestic markets. Quality assurance training in Maldives, PNG, India, Sri Lanka and Pakistan created a critical mass of skilled manpower in the industry niche of value-added tuna production. Improved marketing skills strengthened the beneficiary companies, along with the creation of new value-added products, and improved techniques by helping to streamline production and utilize resources. As companies have grown, new boats have been introduced and more small-scale operators have become involved.
