Ready-To-Sell: Developing Value-Added Seafood Products
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Ready-To-Sell Developing Value-Added Seafood Products How do you make more money out of the same product? You know — get a bigger bang for the buck? As commodity producers, local seafood businesses like yours may seem to be at a disadvantage with foreign competitors because of their lower labor costs. But two current market trends are in your favor: The growing demand for seafood in this country, particularly locally produced products. Demand for convenient, ready-to-eat meals because people are leading very busy lives, often with little time to cook at home. Following either trend can help you expand your market and add value to your existing products: When you identify your product with a locale, you are appealing to a consumer’s attraction for a region’s coastal heritage or their preference to buy locally harvested foods. When you create a product that is less perishable and requires little in-home preparation, you are satisfying a retailer’s need for an extended shelf life and a consumer’s need for convenience. By formulating a seafood appetizer or entree that is nutritious, flavorful and easy to prepare, you are giving that raw seafood enhanced or new qualities — thereby adding value to your product. But manufacturing a new seafood product is not as simple as preparing a home meal. Processors must discern how to receive, portion, weigh, blend and cook mass • • • • ingredients using different kinds of processing equipment. Hazard analyses must be conducted to determine where monitoring and control measures should be applied during processing and storage to ensure that products will be safe for consumers to eat. Creating new products is also time intensive, taking up to a year or more to develop. So how can you, the seafood processor, create wholesome value-added seafood products that satisfy specific consumer needs? There are two main answers we’ll go over in this Blueprint: Knowing who to talk to, and Understanding the product development process. WHO TO TALK TO: A Food Technologist The state of North Carolina can help you develop value-added foods through three resources: the Department of Food, Bioprocessing and Nutrition Sciences ( FBNS); the N.C. Department of Agriculture and Consumer Services (NCDA&CS); and the N.C. Department of Environment and Natural Resources ( NCDENR). It’s easier to talk to a single person who can help you navigate all the information and expertise within FBNS, NCDA&CS and NCDENR. You need a food technologist. Working with a food technologist who is skilled in product development is critical to your success. The technologist can help you access resources 1. 2. BLUEPRINTS NORTH CAROLINA SEA GRANT NC STATE UNIVERSITY BOX 8605 RALEIGH, NC 27695-8605 UNC-SG-BP-10-10 Prepared by Barry Nash Seafood Technology & Marketing Specialist North Carolina Sea Grant North Carolina State University Seafood Laboratory Morehead City, N.C. 252/222-6337 [email protected] Image Credit: Scott Taylor
Transcript of Ready-To-Sell: Developing Value-Added Seafood Products
Ready-To-SellDeveloping Value-Added Seafood Products
Howdoyoumakemoremoneyoutofthesameproduct?Youknow—getabiggerbangforthebuck? Ascommodityproducers,localseafoodbusinesseslikeyoursmayseemtobeatadisadvantagewithforeigncompetitorsbecauseoftheirlowerlaborcosts.Buttwocurrentmarkettrendsareinyourfavor:
Thegrowingdemandforseafoodinthiscountry,particularlylocallyproducedproducts.Demandforconvenient,ready-to-eatmealsbecausepeopleareleadingverybusylives,oftenwithlittletimetocookathome.
Followingeithertrendcanhelpyouexpandyourmarketandaddvaluetoyourexistingproducts:
Whenyouidentifyyourproductwithalocale,youareappealingtoaconsumer’sattractionforaregion’scoastalheritageortheirpreferencetobuylocallyharvestedfoods.Whenyoucreateaproductthatislessperishableandrequireslittlein-homepreparation,youaresatisfyingaretailer’sneedforanextendedshelflifeandaconsumer’sneedforconvenience.
Byformulatingaseafoodappetizerorentreethatisnutritious,flavorfulandeasytoprepare,youaregivingthatrawseafoodenhancedornewqualities—therebyaddingvaluetoyourproduct. Butmanufacturinganewseafoodproductisnotassimpleaspreparingahomemeal.Processorsmustdiscernhowtoreceive,portion,weigh,blendandcookmass
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ingredientsusingdifferentkindsofprocessingequipment.Hazardanalysesmustbeconductedtodeterminewheremonitoringandcontrolmeasuresshouldbeappliedduringprocessingandstoragetoensurethatproductswillbesafeforconsumerstoeat.Creatingnewproductsisalsotimeintensive,takinguptoayearormoretodevelop. Sohowcanyou,theseafoodprocessor,createwholesomevalue-added seafood productsthatsatisfyspecificconsumerneeds?Therearetwomainanswerswe’llgooverinthisBlueprint:
Knowingwhototalkto,andUnderstandingtheproductdevelopmentprocess.
WHO TO TALK TO: A Food Technologist ThestateofNorthCarolinacanhelpyoudevelopvalue-addedfoodsthroughthreeresources:theDepartmentofFood,BioprocessingandNutritionSciences(FBNS);theN.C.DepartmentofAgricultureandConsumerServices(NCDA&CS);andtheN.C.DepartmentofEnvironmentandNaturalResources(NCDENR). It’seasiertotalktoasinglepersonwhocanhelpyounavigatealltheinformationandexpertisewithinFBNS,NCDA&CSandNCDENR.Youneedafoodtechnologist. Working with a food technologist who is skilled in product development is critical to your success. Thetechnologistcanhelpyouaccessresources
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BlueprintsNORTH CAROLINA SEA GRANT NCSTATEUNIvERSITY BOX8605 RALEIGH,NC27695-8605
UNC-SG-BP-10-10
PreparedbyBarry NashSeafoodTechnology&MarketingSpecialistNorthCarolinaSeaGrantNorthCarolinaStateUniversitySeafoodLaboratoryMoreheadCity,N.C.252/[email protected]
ImageCredit:ScottTaylor
withinFBNS,NCDA&CSandNCDENR;managetheproductdevelopmentprocess;andprovidemarketingguidance. North Carolina Sea Grantcandirectyoutoanexperiencedfoodtechnologist.SeaGrant,inpartnershipwithFBNS,NCDA&CSandNCDENR,hasassistedseafoodbusinessesincommercializingmanykindsofnewproducts.
WHO TO TALK TO: A Marketing Specialist Whenyoucommittodevelopinganewseafoodproduct,youmustfirstdecideifitwillbesoldinthewholesaletrade,theretailsectororboth.Ifyourproductrepresentsyourfirstexperienceinretail,youshouldconsiderbrandingtoprovideyourproductacommercialidentitythatwillappealtoyourtargetcustomer. Rememberthatoneofthehottrendstodayisthelocal food movement.Withlocalbranding,customersfeelasenseofconnectionwiththeirfavoritecoastalregion,orrelatetoasenseofhonorforthefishermen—inspiringthemtopaymoreforlocalproducts. Tobetterinformthepublicwhenlocalseafoodisseasonallyavailableandwhereitissold,SeaGrantledacommunityefforttolaunchCarteret Catchin2006tohighlighttheseafoodharvestedbyfishermeninthecentralcoastofthestate.ThisprograminfluencedcommunitypartnerstolaunchBrunswick Catch,Ocracoke FreshandOuter Banks Catchinlateryears,givingeachregionauniquebrandforcustomerstorecognize. Marketing specialistsatSeaGrantandNCDA&CScanhelpyouwiththebrandingprocessandwithcreatingsalesbrochurestomarketyourproduct.YoucanlearnmoreaboutbrandinganddevelopingsalesinformationintheNorthCarolinaSeaGrantpublication“BrandingSeafood:DevelopingaMarketingPlantoSellvalue-AddedSeafoodProducts”(UNC-SG-BP-06-01).
HOW TO DEVELOP IT: Lessons from the Pamlico Packing Company, Grantsboro, N.C. Toshowcasethestepsinvolvedinproductdevelopment,let’slookatacasestudyofthePamlicoPackingCompanyinGrantsboro,N.C.,whichappliedforandreceivedfundingthroughtheN.C.FisheryResourceGrant (FRG) Program(Project02-ST-04).FRG,whichisfundedbytheN.C.GeneralAssembly,hasprovidedresearchgrantstobusinessestodevelopinnovativeseafoodproducts. PamlicoPackingdevelopedalineofrefrigerated,ready-to-eat (RTE)seafoodspreadsandsaladsfortheretailmarket.Let’sseehowtheirrecipeconceptsweretransformedintofinishedproducts.
THE CHALLENGE Thoughpopularinstores,thekeepingqualityofperishable,RTEseafoodspreadsorsaladsmayonly
average7to10days,dependingonthetypeofingredientsandontheirbacterialload,aswellasonprocessing,productstorageanddistributionconditions. Thistighttimeframecanplaceprocessorslikeyouataneconomicdisadvantage.Thetimewindowinwhichaproductispurchasedbyconsumerscanbeveryshort,duetovariablesbeyondaprocessor’scontrol.Improper product rotation canresultinoldinventorygettingshovedfurtherbackintheshelf.Poor shelf visibilityatthestoremeanscustomerswon’tbuywhattheycan’teasilyfind,andmoreinventorygetsbackedup. Andwhobearsthecostsforthisunsoldinventory?Chancesareitwillbeyou. But,simplyextendingtheshelflifefrom10upto30dayscreatesamorestableproducttomarkettoretailers.Ifitkeepslonger,itcanstayontheshelflonger.Moreunitshavethepotentialtobepurchased. Now,let’sdevelopthisvalue-addedRTEproduct.
STEP 1: Refine Product Concepts In2004,oneofPamlicoPacking’sownerswasinterestedinretailingalineofseafoodsalads,dipsandspreadshiswifehaddevelopedforhercateringbusiness. Butwhichofherrecipescouldbeconvertedintocommerciallysuccessfulproducts?Thefirststepwastodeterminetherecipesthathadthestrongestsalespotential,andtolearnwhichitemswouldrequiremorerefinementtoenhancetheirconsumerappeal. SeaGrantcontactedtheFBNS’sSensoryServiceCenter,whichassembledaconsumer panel.Thepanelevaluated12prototypeshavingclams,crab,crawfish,shrimp,ortunaasprimaryingredients. Togaugeeachproduct’sappeal,about50consumerswererecruitedtorateeachitemonnumericscalesthatmeasuredpreferenceandpurchaseintent. Twoshrimpandtwotunasaladsreceivedthehighestacceptabilityscores,indicatingtheyhadthestrongestcommercialpotentialamongthe12prototypestested.Let’sfollowtheprogressofthesefourproducts.
STEP 2: Convert Recipes for Production TheingredientsineachrecipewereweighedtoconvertU.S.measurements,suchastablespoons,cups,ouncesandpounds,intometricunits(grams).Then,SeaGrantcalculatedthepercentagebyweightforeachingredientwithintherecipe. Byconvertingingredientamountsintopercentages,arecipewastransformedintoaformulation.Ingredientpricesandoperationalfixedcosts(suchasoverhead)werethenenteredintoacomputer spreadsheet,whichisavailablefromSeaGrant.Usingthespreadsheet,PamlicoPackingcouldnowadjustthepercentamountofany
ingredientinanyformulationandcalculatenewestimatesforaproduct’stotalmanufacturingcost. Thisinformationcanthenbebalancedagainstadesiredretailcostandsensorycharacteristics(texture,flavor,colorandappearance)tocreateanitemthatisbothappealingandprofitabletomanufacture.Thisiscalledleast-cost formulating.
STEP 3: Identify Industrial Suppliers of Functional Food Ingredients Tocontrolbacterialgrowthduringrefrigeratedstorageandextendshelflife,SeaGrantstaffrecommendedacommerciallyavailableblendofsodiumlactateandsodiumdiacetate.SeaGrantalsosuggestedtoPamlicoPackingotheringredientstomaintaintheoptimalflavor,textureandappearanceofeachproduct. SeaGrantprovidedthecontactinformationofsupplierswhosoldtheseingredients—savingPamlicoPackingconsiderableeffortinhavingtosourcevendorsontheirown.SeaGrantalsogaveinstructionsfortheuseofeachsuggestedingredient,whichincluded:
FlavorenhancerstomaintainproducttasteAgumpowdertocontrolmoisturelossfromtheshrimpandvegetableingredientsAnaturalantioxidanttoretardrancidityinthetunasaladsPotassiumsorbatetosuppressyeastandmoldgrowth.
STEP 4: Enhance Production Efficiencies Withtheformulationsrefined,it’snowtimetofine-tuneproductionmethods.Severaltestsmaybeneededtoverifywhetheryourproductionequipmentoperatesasexpected,andwhetheryourmanufacturingprocessproducesthehighestpossibleyieldsofsaleableproduct. PamlicoPackingdevelopedamanufacturingscheduletodeterminetheorderofingredientstobeaddedduringtheblendingstep,aswellasspecificmixingtimesbetweeningredientstoensureahomogenousproductcomposition.Filltestswereconductedtoensuretheirpackagingequipmentwasdeliveringthecorrectamountoffinishedproducttoeachretailcontainer. SeaGrantandtheFBNS Seafood LaboratoryspecialistsidentifiedequipmentsuppliersforPamlicoPackingtoobtainindustrialblenders,stainlesssteeltables,scalesandpackagingequipment.FBNScanreferyoutofoodindustryresourcesforprocessingequipmentandingredientsforyourmanufacturingneeds.
STEP 5: Conduct Shelf Life Evaluations Next,samplesofeachproductmustbesubjectedtobacterialandsensory testing.Thiswillvalidateour
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expectationsforshelflifeandconsumerappeal,orwhethermoreadjustmentstotheformulationsareneeded. Bacterialteststellushowmanydaysittakesforspoilagemicroorganismstogrowandmakeafoodunfittoeat.Andwhileafoodmightnotspoil,itcanloseitsdesiredtasteordevelopobjectionableflavorsovertime.So,asensorytestisalsoneeded. PamlicoPackingproducedtwoversionsofeachsalad:onewithpreservatives,andonewithout.ThesaladsamplesweresenttotheSeafoodLaboratoryinMoreheadCity.Atweeklyintervals,bothversionsofeachsaladweresubjectedtobacterialandsensoryevaluations. Inbacterialtests,FBNSdeterminedthedateatwhichborderline spoilageisreached.Thisismeasuredin“colonyformingunitspergram(CFU/g)”—basicallytheaverageconcentrationofbacterialcoloniesinonegramor0.035ouncesoffood.Thecommonlyacceptedlimitis500,000CFU/g.Here,thebacterialtestsdemonstratedthatthepreservativesystemwasadequatelycontrollingthegrowthofspoilageorganisms. Thencomesthesensorytest.Individualswererecruitedtoserveassensorypaneliststoratetheflavor,texture,colorandappearanceofeachproductonascaleof1(Terrible)to7(Excellent).Thescoresprovedthattheingredientsmentionedearlierweresuccessfullymaintainingthedesiredsensorycharacteristicsofeachproduct.
STEP 6: Develop Safety Specifications and Nutritional Information Labels You’veperfectedtheformulationsandproductionprocessforyournewRTEproducts.Nextstep:complywithfederalsafetyandnutritionlabelingrequirements. Atthebeginningoftheproject,SeaGrantcontactedNCDA&CSandNCDENRtoarrangeaconsultationwiththeownerstodesignafactoryprocessingareathatmetguidelinesforproducingsafefood.Oncethefacilityandequipmentwereinplace,theSeafoodLaboratoryconductedaprocessvalidationontheheat-processingequipmentforcookingtunasteaks,toensureitwassufficienttodestroydisease-causingbacteriaasrecommendedintheU.S.Food&DrugAdministration’s“Fish&FisheriesProductsHazards&Controls”guide. Theshrimpwerereceivedfullycookedanddidnotneedanyfurtherheatprocessing.However,PamlicoPackingrequestedaletterofguaranteefromtheshrimpproducerspromisingthatsafehandlingprocedureswereobservedattheirplants. SeaGrantalsohelpedPamlicoPackingconductahazardanalysisonitsproductline,developingsafetymonitoringplansforitemsthatweresubjecttothefederal Hazard Analysis and Critical Control Point (HACCP)regulation.Theseplanswerereviewedwith
productactslikeanonlinesalesbrochure,exceptyoucanaddcolorfulphotos,videos,customercommentsandotherpromotionalfeatureswithoutthecostofprinting.Websitesnotonlyattractwholesalebuyers,buttheyalsocangenerateword-of-mouthadvertisingfromconsumers. LearnmoreaboutcreatingawebsiteforyourbusinessintheNorthCarolinaSeaGrantpublication“UsingtheInternettoEnhanceDirectMarketSalesofSeafood”(UNC-SG-10-02).
THE RESULT PamlicoPacking’snewsaladsenteredlimitedtestmarketswithgoodresults.Thebuyersattwogrocerychainswerepleasedwiththequalityoftheproductsandthequickturnover,indicatingtheitemshadhighconsumerappeal. Developingavalue-addedseafoodproductrequiressufficienttimeandresourcestoenhanceyoursuccess.Youjustneedtoplanwellandconsultwithahelpfulfoodtechnologistandmarketingspecialistforagoodreturnonyourinvestment.
To order additional copies of this Blueprint and other Sea Grant publications, call 919/515-9101 or visit us online at: http://www.ncseagrant.org/home/resource-library
NCDA&CSandNCDENRinspectorsbeforethecompanybeganproductionanddistribution. FBNSandNCDA&CShelpedPamlicoPackingdevelopandreviewnutritionalprofilesforitsnewproducts.FBNSgeneratednutritionalinformationforeachproductusingacomputerprogram.TheinformationwasthenreviewedbyNCDA&CS.Onceapproved,SeaGrantsentthedatatoPamlicoPackingsoitcouldprintproductlabels.
STEP 7: Market Introduction Beforeinvitinganentrepreneurtopresentaproduct,retailandwholesalebuyersprefertoreviewsales brochurestodetermineifaproductisagoodfitwiththeirexistinglineofvalue-addeditemsormeetscriticalconsumerneeds. Oncethesaladswerereadytobemarketed,SeaGrantassistedPamlicoPackingindesigningsalesbrochuresthatgavebriefdescriptionsofeachproduct—brandname,typeofpackaging,shipping-casedimensionsandpricing—thatallbuyersrequireforaninitialevaluation. YoushouldalsoconsiderusingtheInternettodrawattentiontoyournewproduct.Awebsiteprofilingyour
READY-TO-SELL: Steps Toward a Successful Seafood Product
ResearchPHASES
MAJORCOSTS
Create Refine Comply Promote
TimeSensory Tests
TimeIngredientsEquipment out of productionNew Equipment
TimeShelf Life Evaluations
Safety ConsultationNutritional Evaluation
Graphic/Web DesignersMarketing Consultation
SHELFIDEA
ConsumerEvaluations
In-CompanyEvaluations
IdentifyCritical
Ingredients
RunProduction
Trials
CREATEFORMULATION
& REFINEPROCESS
DEVELOP& REFINERECIPE
BacterialShelf Life
Tests
SensoryShelf Life
Tests
REFINEFORMULATION
HazardAnalysis& HACCP
Plans
FINALIZEPRODUCT
MARKETINTRODUCTION
InternetAdvertising
SalesBrochure
DevelopCommercial
BrandCommercialBuyer
Requests
TradeMagazines
NutritionLabels &
RegulatoryReview
Ben Young Landis & Barry Nash/North Carolina Sea Grant/June 2010
