Channelling sidestreams back to the mainstream
Seafood processors are throwing money down the drain by assuming that fish parts like fatty tissue, frames, heads, and fins aren’t suitable for human consumption, says Michaela Lindström, chief executive of marine resources upscaling technology developer Hailia Nordic Oy.
Opinion
Most fish processors are losing out on significant income from their sidestreams. With only 40-70% of each fish used for high-value products, the remaining parts generate little revenue today. Seafood processors need to shift their narrative: stop thinking in terms of the 'good’ and ‘bad’ parts of the fish, and instead actively work out how to increase the value of 100% of it, increasing the end value per kilo. The demand is already there.
The story of industrial food processing is one of waste management. How can we get any value from parts that are not easily appealing to customers? That mindset is the reason we have an endless stream of fish oil health products and bulk sales of animal feed: high-yield, low-value products that barely generate income unless sold in enormous quantities.
The core problem is that the little value that does exist is captured by third parties, meaning most seafood processors are actively losing revenue on raw material they already own. The idea that parts like fatty tissue, frames, heads, fins, and small miscuts aren't suitable for human food products is why the word sidestream exists in the first place. Clinging to the belief that this current system is working is costing processors real money.
Clinging to the belief that this current system is working is costing processors real money.
Sustainability reporting
At the same time, food processors are under increasing financial pressure. Seafood raw material prices are rising at pace with reductions in fish stocks, lower quotas, and a growing market demand they aren’t able to meet. Processors are also under increasing sustainability reporting requirements, shifting the focus from fillet yield to total raw material utilisation.
To address this, we have to stop talking about sidestreams as unfortunate byproducts of fish production and instead look for ways to put these highly valuable ingredients to better use. There is no question that food products give better returns than the current best practices. Simply, sidestreams need to be integrated into the overall raw materials for food production, and the goal of food processors should be to find ways to improve their yield of marketable food from each fish. Even small incremental changes, like a 2-4% improvement in utilisation rate, can have a significant impact, because selling that raw material as end products with 10 times higher monetary value is reflected directly on the bottom line.
A recent study we conducted shows that consumers are more than ready, with 74% of respondents in Germany, the UK, and Sweden saying they’d be happy to eat food made from parts of fish that are currently not widely used in food products. Asked specifically about food products made from fins, heads, and frames, consumer sentiment is majority positive.
Enormous catering market
There are several ways for processors to improve their yield. Looking specifically at the high-volume horeca (hotel, restaurant, catering) market, the mix of new technology and a focus on higher utilisation would mean introducing new products that can be used differently than they are today. Instead of whole fillets, the mince, fatty tissue, and cartilage can be transformed into delicious ingredients for pasta dishes, bowls, and salads, all made in high volume. The catering market for institutions and healthcare facilities is enormous, and they prefer ingredients they can use without requiring extensive additional treatment.
Let’s all agree to stop talking about sidestreams as a byproduct of food processing and start looking at them as part of the mainstream
While even small changes, like 2-4%, can have a significant impact, the right implementation of technology and mindset can increase yield per fish by 10-20% relatively quickly. Getting food-grade prices for that amount of raw material would be a tremendous boost to the balance sheet and give processors completely new ways to offset difficulties in sourcing fresh fish at pace with demand.
So, let’s all agree to stop talking about sidestreams as a byproduct of food processing and start looking at them as part of the mainstream. The impact of that change alone on an industry under increasing pressure will be tremendous.
