DFO Ilii~H~I~~''"' 12000208

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DFO Ilii~H~I~~'' DFO ilii~H~I~~''"' 12000208 STOCKFISH TECHNICAL MISSION TO SCANDINAVIAN COUNTRIES (JUNE 14-18,1982) MAJOR FINDINGS SH 223 C2923 no.83-01 C.2 -f s !-/ JJ3 c~/j_3 T~lt: LIBRARY BL::DFORD INSTITUTE OF 71 o. ~3 -6\ CCEANOGRAPHY BOX '006 DARTMOUTH, N.S. B2Y 4A2 C,, L D E CLASS,FIED DECLASSIFIE J', "' ~ l 2 f()Q6 STOCKFISH TECHNICA L MISSION TO SCANDINAVIAN COUNTRIES (JUNE 14-18,1982) MAJOR FINDINGS ~ ~ '\\.~ ,.,.('£~~$ \}"' Dr. Chand Passey, P. Eng. \..\\\\'1~,_ :\~s ~~\:> Senior Marketing Planning Adv i sor ~\s'\\~~~ ~ - o_\J~ Marketing Directorate "'\\\..\o~\\~ oct~s Department of Fisheries & Oceans -et,c"-~s ~~ . Ottawa, Canada Rev. Dec. 8, 1982 TABLE OF CONTENTS Page 1. EXECUTIVE SUMMARY . • . • . 1 2. PURPOSE OF THE MISSION .....•..•...•............................ 2 3. SPECIFIC OBJECTIVES ............................................ 2 4. MAJOR FINDINGS . • . • . 4 4.1 General ..................................................... 4 4.2 Cost of Factor Inputs ••........................•.......... 6 4.3 Machinery to Prepare fish for Drying ....•....•............ 7 A) Fish head cutting machines ....................•........ 7 B) Fish tying machines ...........•.................•...... 8 C) Baling machines •.......•..........•.....•.............. 8 4.4 Open-air Drying of Stockfish .....•........................ 9 4.5 Mechanical Drying of Stockfish ............................ 14 4.6 Products, Markets and Marketing of Stockfish .............. 24 5. RELEVANCE OF FINDINGS TO CANADA ................................ 28 APPENDIX I LIST OF MISISON MEMBERS ....•................................... 29 I I GENERAL APPROACH . 30 III ITINERARY . • . • . 31 IV BACKGROUND OF PERSONS/FIRMS VISITED .. .. .. .. .. .. .. .. .. .. 34 ATTACHMENTS 1. Union of Stockfish Producers, Iceland. "Laws of the Union of Stockfi sh Producers. 11 Trans 1 ated from the most recent ed i t i on av ai l ab l e . ... 39 2. Anonymous. 1982. "It is not economical to sell highly processed fish products today." Translation of an article which appeared in the June 18, 1982 edition of 11 FISKARIN 11 (received from the Oslo Post) ...........................•........ 46 - 1 - STOCKFISH TECHNICAL MISSION TO SCANDINAVIAN COUNTRIES MAJOR FINDINGS 1. EXECUTIVE SUMMARY We are pleased to report that the fact-finding stockfish Technical Mission organized and mounted by the Marketing Directorate has been quite successful in probing the technical and economic aspects of stockfish production/marketing options in Norway, Swe1jen and Iceland .. The insight gained by the Mission should help the Marketing Directorate to develop policies, programs and initiatives, based on distinctive domestic competence and strengths to help Canada become a major force in the production and export of stockfish and related products. We trust the information will not only be helpful but will also be utilized by others in government and industry. The mission was comprised of Chand Passey of the Marketing Directorate, Wally McDougall of Scotia-Fundy Region, Bruce Chapman of Fisheries Council of Canada and Philip West of Fisheries Products (as listed in Appendix I). The group met with key stockfish producers/exporters, equipment manufacturers and stockfish export associations. The results of the mission indicate that because of the Scandinavians' more favorable weather for open air drying, and their lead in the development of mechanical drying of stockfish, Canada. may not be able to achieve significant penetration of the stockfish markets in the absence of an expeditious development of a responsive production and marketing capability. In what follows, the purpose and some of the major findings of the mission and their relevance to Canada are summarized. The itinerary and other housekeeping details are appended to the Report (Appendix II and III)., - 2 - 2. PURPOSE OF THE MISSION The purpose of the mission was to probe the production and marketing environment and attitudes of stockfish producers/exporters and mechanical drying equipment manufacturers with a view of gaining insight into the strengths and weaknesses of stockfish production and marketing approaches and systems in Scandinavian countries. Another purpose was to identify how Canada can secure and maintain, over the long term, a distinct marketing edge over the competition and take full advantage of stockfish marketing opportunities. 3. SPECIFIC OBJECTIVES The following were the main objectives of this fact-finding mission: A) To assess the views of Scandinavian stockfish producers, traders and others on the traditional and emergent methods of stockfish production. B) To probe what the Scandinavian producers and/or traders perceive as their major strengths in the production and marketing of stockfish. C) To learn what the Scandinavian producers and/or traders consider to be major problem(s), if any, in servicing the stockfish markets, seasonality of production, lack of synchronization between timing patterns of demand and timing patterns of supply. D) To probe what the Scandinavian producers and/or traders have experienced as the major production related problems, e.g. inadequacy of drying leading to product loss in storage, long drying periods, product loss during drying due to vagaries in the weather, and/or environmental contaminations. E) To assess the current status of and future directions for development of mechanical drying in Scandinavian countries to overcome production and marketing related problems. -3- F) To probe what equipment manufacturers see ats the major problems facing stockfi sh producers and traders in production and marketing of stockfish. To further probe how their equipment is likely to help overcome these problems. G) To the extent possible, probe into the production costs of stockfish in the Scandinavian countries, by various cost components: e.g. raw material, labour before drying, labour during drying, energy and capital component of drying costs, labour for packaging, and production overhead. H) To assess what the producers, traders, officials, and equipment manufacturers feel would be the likely impact of mechanical drying on the product quality, product acceptability, production costs and marketability of stockfish. I) To learn about the stockfish grading practices used in Scandinavian countries by exploring this matter in the official circles, talking to private inspection agencies, graders, and exporters. J) To obtain first hand knowledge about how the processing requirements and Scandinavian practices differ in the drying of cod vs. other ground fish species (e.g., haddock, pollack, cusk, and hake). K) To investigate why relatively little stockfish is produced in sp 1it form even though reportedly it commands a premium price. - 4 - 4. MAJOR FlNDINGS 4 .1 General A) Market specifications stipulate that the fish must not have been frozen while being dried as the freezing leads to easily-identifiable defect (porosity). While at one time Nigerian market accepted the porous dried stockfish (commonly known as "bread" stockfish), this market has now almost disappeared. This does not mean, however, that frost-damaged fish cannot be sold at reduced prices. B) Fish which has been previously frozen is suitable for making good quality stockfish provided it is completely thawed out before being dried. C) It appears that it is necessary to bleed fish while it is still alive in order to produce good quality stockfish. D) Members were told that long-lined fish makes the best quality stockfish. E) In Norway, we were told that as a general rule the top quality raw material is allocated for the production of frozen fillets, salt cod and Italian grade stockfish. Whatever is not directed towards these product forms is allocated for the production of stockfish and frozen blocks. E.1) In Norway, the stockfish producers prefer to leave the napes attached to the body of the fish as it increases the yield of stockfish per fish. F) The predrying processing and handling methods for the production of stockfish do not generally differ from species to species. However, it was mentioned that cusk should be held on ice for at least 1 week (in Norway they hold it for as long as 4 weeks) before the start of drying. F.l) Fat content of fish for mechanical drying should not exceed 6-7% (e.g. in case of Blue Whiting). ..,. 5 - G) The yield of stockfish from headed and gutted fish depends upon the species, moisture content of finished product, and any production losses. For cusk the yield was reported to be 24%, and for cod and haddock 26-27% (seems high). H) Norwegian regulations stipulate a moisture content of 16% in exported finished stockfish. However, it was reported that most of the product has a moisture content of about 20%. It is difficult to reduce the moisture content below 22-24% when drying the fish outdoors in open air. An additional period of 4-6 weeks for finish drying in well ventilated warehouses is necessary to reduce the moisture to 20%. Good ventilation for stockfish being finish-dried or stored in warehouses is extremely important. There are also advantages of placing stockfish on pallets in criss-cross rows. I) While a premium was paid for ''split" stockfish over the "round" in Nigeria before the civil war, such difference in prices has since disappeared. We were told that there is still some premium received for split stockfish in Cameroon. J) Stockfish reprocessed into "Lutefisk" for the Swedish and other ethenic markets has to be of high quality and in the split form. Such stockfish commands premium prices. Usually ling is
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