Commercialization of Crab and Lobster Waste into Value-added Products

Julien AlbertPresident

A New Reality

Because of declining natural fishery resources and increasing consumer demand for fishery and aquacultural products, it is no longer practical to discard wastes from crab, lobster and shrimp processing plants, especially when a significant amount of valuable raw materials can be recovered and used to produce value-added new products and functional ingredients.

Presentation

• Introduction• SLGP: Crustacean Waste Processor• Crab Waste Processing

– Benefits– Pitfalls

• Conclusions

Presentation

• Introduction

St. Laurent Gulf Products Ltd

•Plant built in 1965•Operating capacity

Herring: 23 MT/hrCrustacean: 7 MT/hr

•Employees: 13Administration: 3Research: 1Plant: 9

2260 rue du QuaiParc Industriel, Bas Caraquet

NB E1W 5Y3Phone: (506) 727-5465

Fax: (506) 727-4255E-mail: ABC@ABCfishmeal.ca

www.ABCfishmeal.ca

Bas-Caraquet

Snow Crab (Chionoecetes opilio)

• Canada's top fish exports by species (2004)– Lobster $952 million– Crab $926 million– Salmon (farmed and wild) $574 million

• Chionoecetes opilio is Canada's second most valuable seafood export, after lobster.

• Snow crab is the foundation of the country's crab fishery.

• Other species, including King crab, Dungeness crab and Rock crab, represent only a fraction of the snow crab's yield.

• Of the nearly $1 billion in crab exported from Canada in 2004, most ended up in the United States. Japan and the European Union are all important markets for crab.

Presentation

• Introduction

Presentation

• Introduction

• SLGP: Crustacean Waste Processor

SLGP: Crab Waste Processing

• Waste from 9 crab processors

– Farthest plant at 55 km (road trip)

• Acadian peninsula processing approximately 60% of NB quota

• Started pilot project in 1998

• Commercial capacity by 2000

35 km

CRUSTACEAN WASTE PROCESSING

PITS (crustacean waste) Cooking

Dewatering

DryingShell Sorting

ShellGrinder

Meal

Whole Crab as Product

0% wet crab waste

Crab Sections

32% wet crab wasteDry shell yield 13.8%Dry meal yield 8.8%

Meat Extraction

57% crab wasteDry shell yield 21.4%Dry meal yield 10.7%

Crab Meal

Crab Shell

SLGP Crab WasteProduction Statistics

* Approximately 60% of NB landings.

240941,5002006177811,1729,68216,1372005126568187,07711,794200464264104,4577,4282003197761,2177,16711,9452002128607544,3167,1942001147518195,0898,4822000

ShellMealSLGP:

Waste inAcadian

Peninsula*NBYear

2007 1,317 77 206

SLGP Crab WasteProduction Yields

16.06.31,500 2006

16.16.6 Average15.6 5.81,317 2007

15.1 6.9 1,172 200515.4 6.9 818 200415.7 6.4 410 2003

6.2 7.9 6.2

Meal (%)

Shell (%)

Waste (MT)Year

200220012000

16.2 1,217 17.1 754 18.0 819

Crab Meals Specifications

ABCNRC*Nutritional Composition

(%)

AshLipid

Crude Protein

16411035532

*Data from NRC (1993)

551016

ABC Crab MealSales prices, FOB Caraquet, NB

0100200300400500600700800

2000 2002 2004 2006

MealCnd

$/M

T

ABC Crab ShellSales prices, FOB Caraquet, NB

0100200300400500600700800

2000 2002 2004 2006

ShellUS$

/MT

Crustacean Shell Specifications (I)

16.5 ± 0.5 MT12.0 ± 0.5 MT14.0 ± 0.2 MTNet Container Weight *23.0 kg15.0 kg18.0 kgPackaging

Min.Crude Proteins (%)

0.5% < 2 mm% of Fines

No sand, dirt, mold, etc.Impurities

>10%, <12%Humidity (%)

Specifications

1.3 – 7.0 cm½” – 2 ¾”

0.5 - 6.0 cm¼ - 2 ½”

0.5 - 3.0 cm¼ - 1 ¼”Size

Lobster ShellChoice Opelio Crab Shell

Select Opelio Crab ShellProduct Description

* container size; 40`HC

Crustacean Shell Specifications (II)

1000-25001000-20002000-6000Viscosity (cps)

1.7 - 2.31.6 - 2.31.8 - 2.8MDA (MW)

80 - 8580 – 8585% Deacetylation

0.1 - 0.20.3 - 0.80.1 - 0.3% Ash

1.51.3 - 1.71.3 - 1.9% H2O

Chitosan Quality7.1 - 4.16.0 - 4.44.7 - 5.1Conversion Rate

14.1 - 15.816.5 - 19.621 - 23Chitosan Yield (%)

20.6 - 21.823.0 - 28.030.0Chitin Yield (%)

Raw Shell Quality

1.3 – 7.0 cm½” – 2 ¾”

0.5 - 6.0 cm¼ - 2 ½”

0.5 - 3.0 cm¼ - 1 ¼”Size

Lobster Shell

Choice Opelio Crab Shell

Select Opelio Crab ShellProduct Description

Presentation

• Crab Waste Processing– Benefits– Pitfalls

Benefits ofCrustacean Waste Processing (I)

Primary: Crustacean Processors• Waste removal (from environment)• Avoid cost of waste remediation• Potential added revenue stream

Secondary: Waste Processors• Value added by-products (shell, meal)• Economic ($)

– Operating and administrative cost decrease• Increase labour hours and wages• Value added alternative protein

– Aquaculture– Agriculture

• Opens new markets globally.

Pitfalls ofCrustacean Waste Processing (I)

Subject to:• Landing quota (crab recruitment)• Seasonal (2 to 3 months operating periods)• Raw material yields• P4 Runs

– Round– Sections– Meat extraction

• Freshness– Transportation distance– Processing plant production schedules– Additional cost to stabilize crustacean waste

Pitfalls ofCrustacean Waste Processing (II)

Subject to:• Global market pricing

– China & Japan biggest buyers– Competitive global shell suppliers– Shell derivatives (chitin, chitosan, glucosamine)– Customs, shell specifications, health certificates– Honouring contracts– High Canadian dollar

Pitfalls ofCrustacean Waste Processing (III)

Subject to:• Transportation costs

– Distance– Fuel costs– Fluctuating international container charges

• Other– Requires minimum volumes per day to operate– Fluctuating fuel prices (60% of operating costs)– Initial high capital costs

Conclusions (I)

Risk INCREASES:• If drastic cuts in crab quotas (biomass

management)• If primary processor sell only round crab• If shell derivatives (chitin, chitosan,

glucosamine) market crashes• If energy cost spike (drying, transportation,

containers)

• If global market flooded with sub-standard shell

Conclusions (II)Risk DECREASES:

• For environmental pollution

• If everyday crustacean processing line added to primary production line

• If Provincial governments regulates primary crab processing to meat extraction versus round or whole.

• If Atlantic Canada crustacean waste processors work together to develop production growth, produce high quality shell and meal, stabilize market price and develop a regional commercial processing and marketing of shell derivatives…we will all succeed!

Questions?

Photo: http://seagrant.uaf.edu/bookstore/pubs/AK-SG-00-01.pdf

Snow crab landings and estimated ABC crab meal production (1990-2002)Estimated Production (MT)Landings (MT)

1,074189106,39459,46917,70618,69110,528200295714194,84456,57114,01214,01110,250200194313993,41655,53214,23713,7909,857200096011295,06868,99511,22711,0843,762199975410074,73552,18010,3219,8702,364199870912670,26244,71411,38612,5051,657199764713264,11337,90213,04613,12144199663716663,10631,46413,78116,4571,404199559416458,90128,17814,00216,224497199445112944,71821,64410,25112,823-199335111534,78715,1848,23911,364-19923309732,73215,2377,8919,604-19912417023,87010,0136,8676,981-1990

Total Gulf TotalNFLDQuebecGulfScotia Fundy

Year