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Collaboration is Working Together

Collaboration is the process of two or more entities working together to complete a task or achieve a goal. When companies collaborate, they create teams, pool resources, and share knowledge to find solutions to their common needs. The results benefit the companies that collaborated, more quickly and cheaper than a single company could. Collaboration creates a strong business.

Seriola Industry Issues

The Seriola industry faces several complicated issues where collaboration would benefit the industry greatly. They can be grouped into 5 main areas of interest: 1) Feed, 2) Genetics, 3) Marketing, 4) Certification, and 5) Therapeutics.

Feed, the Greatest Expense

The greatest expense in aquaculture is feed and massive efforts are being made to find ways to lower costs by many individual companies. Feed is resource intensive with a large portion made from fish meal and oils. In 1995 the feed for salmon contained more than 50% fish meal, more than 30% fish oil, the remainder alternative sources of proteins and starch . By 2016 fish meal had been reduced to about 18%, fish oil to about 10% and about 20% change to vegetable oils, with the remaining more than 50% as alternative sources of proteins and starches.

Salmon is not Seriola

Salmon is not Seriola, and the species have different dietary needs and feeding habits. The point is that more than 50% of the global salmon industry collaborated to find feed solutions to the benefit of the group. The Salmon industry continues to collaborate on other issues the industry faces. Seriola farms and producers could easily benefit in a similar matter on a global scale.

Meeting Industry Needs through Collaboration

All the industry needs, feed, genetics, marketing, certification, and therapeutics can be managed more effectively through group collaboration. With collaborative research the group can pool genetic data and amplify the power of each producer’s selective breeding program, a resource intensive effort best achieved by working together, while still protecting valuable IP for each company. An overall marketing effort to promote Seriola consumption could be created as well as projects for global certification and a review of therapeutics to combat disease and parasites. By pooling resources in a collaborative effort, the group can more quickly and economically achieve these goals. Collaboration creates a strong business.

Carbon Monoxide Used to Preserve Color

Carbon monoxide (CO) (aka tasteless smoke, filtered wood smoke, CO treated) is used to preserve the color of fish. Normally fresh fish when exposed to the air, will lose its color, and turn brownish over a period of a few days. However, the same piece of fish when treated with CO retains a fresh-looking appearance indefinitely, even after it begins to deteriorate. A 3-week-old fish that has been carbon monoxide treated will appear to be the same as a 3-day old fish.

CO Treatment not Allowed in Japan or EU

CO treatment of fish is not allowed in Japan or the EU however in July 2004 the US FDA approved CO treatments under a petition procedure known as “Generally Recognized As Safe” (GRAS). Under GRAS the FDA relies on the claims of the petitioners and does not carry out an independent safety investigation. The FDA does not consider CO a color additive but a color stabilizer making GRAS acceptable.

Modified Atmosphere Packing (MAP)

Carbon monoxide replaces the air during packing in a process known as Modified Atmosphere Packing (MAP). The concern is that if the packaged fish has been mishandled it is impossible to visually detect if it is spoiled as the CO treatment preserves the appearance of freshness.

Sources
Food Navigator USA, 2005/11/17, “FDA asked to rescind use of carbon monoxide for meats”
Modified Air Packaging www.modifiedatmospherepackaging.com/
National Institute of Health, 2018/02 Monoxide in Meat and Fish Packaging: Advantages and Limits
American Meat Institute, Carbon Monoxide in Meat Packing: Myths and Facts

Pharmaceuticals used by farming industry

Pharmaceuticals are used by the farming industry to control disease, the below list compares aquaculture pharmaceuticals approved by the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF) to those approved by the US Food and Drug Administration (US FDA). The World Health Organization Critically Important Antimicrobials (WHO CIA) list notes two pharmaceuticals approved by MAFF but not approved by the WHO.

Food and Drug Administration

The United States Food and Drug Administration (US FDA) will not allow the importation of fish that have been treated with drugs not approved by the FDA. There are just 9 pharmaceuticals that are FDA approved compared to 26 approved by the MAFF.

World Health Organization

The World Health Organization Critically Important Antimicrobials (WHO CIA). Use of CIA drugs can create antimicrobial resistant bacteria that can spread to humans through the food supply, limiting usage is an important step towards preserving the benefits of antimicrobials for people.

Ingredient	MAFF Status	FDA Status	WHO Status
Alkyl trimethyl ammonium	OK	–	–
Alkyl trimethyl ammonium calcium oxytetracycline	OK	–	–
Amoxicillin	OK	–	–
Ampicillin	OK	–	X
Bicoamycin benzoate	OK	–	–
Chloramine-T	–	OK	–
Chorionic gonadotropin	–	OK	–
Doxycycline hydrochloride	OK	–	–
Erythromycin	OK	–	X
Florfenicol	OK	OK	–
Formalin	–	OK	–
Fosfomycin calcium	OK	–	–
Glutathione	OK	–	–
Hydrogen peroxide	OK	OK	–
Josamycin	OK	–	–
Lincomycin hydrochloride	OK	–	–
Lucium oxytetracycline	OK	–	–
Lysozyme chloride	OK	–	–
Oxolinic acid	OK	–	–
Oxolinic acid (suspension-forming)	OK	–	–
Oxytetracycline dihydrate	–	OK	–
Oxytetracycline hydrochloride	OK	OK	–
Praziquante	OK	–	–
Spiramycin embonate	OK	–	–
Sulfadimethoxine/ormetoprim	–	OK	–
Sulfamerazine	–	OK	–
Sulfamonomethoxine or its sodium salt	OK	–	–
Sulfisozole sodium	OK	–	–
Thianphenicol	OK	–	–
Tricaine methanesulfonate	OK	–	–

In June 2020 Japan announced plans to increase seriola production by the year 2030. The plan initially put forth in 2016 focused on exports to Hong Kong and Southeast Asia.

New Target 240,000 Tons, 160 Billion Yen

In 2018 about 140,000 tons of seriola were produced and of that about 15.8 billion Japanese yen were exported. The new target is 240,000 tons production exporting 160 billion Japanese yen by the year 2030. That is almost a doubling of production within 10 years of which most is to be exported. If successful the export value will be increased about 10 times.

60% of Export Bound to 3 Countries

Just 3 countries accounted for 60% of exported aquacultural products. Hong Kong was the largest at 29.5%, China was 15.9%, and the United States was 11% of export. Other major export markets were Thailand with 7.8%, Vietnam 6.1%, Taiwan 5.7%, and South Korea 5.2%.

Scallops Most Exported Product

Scallops were the most exported product with 15% share and headed mostly to China, perils accounted for 12.3% mostly bound for Hong Kong, mackerel with 8.8%, and seriola at 5.2%. More than 80% of the exported seriola are for the US market.

The US Market

In 2018 the total value of exported seriola was 15.8 billion yen of which 81.3% was for the United States and just 18.7% for other markets. In tonnage that is about 7,200 tons or about 600 tons per month. According to the Minato Shimbun, the industries major newspaper, exports of seriola decreased 73% in May 2020 to 216 tons and 75% to 364 million yen due to the COVID-19 pandemic. How this will impact future markets and the 2030 plan is unknown.

International Certification

The 2 major international certification programs with offices in Japan are Marine Stewardship Council (MSC) headquartered in London, England and Aquaculture Stewardship Council (ASC) headquartered in Utrecht, Netherlands. There is a competing Japanese certification, Marine Eco-Label Japan (MEL) located in Tokyo. Both the MSC and ASC are recognized globally and their certification is often a buyers requirement.

Ambitious but Feasible Plan

The government plan is ambitious and not without difficulties but it is feasible. In order to achieve these goals changes need to be instigated. Large scale farms as found in Norway, Australia, Mexico and other markets need to be given priority. Large companies have greater resources and higher potential to help the local community and can contribute to the success of the government’s 2030 plan.

Obtaining international certification is not easy and it is costly. However it is a cost that other markets have deemed necessary in order to conduct business with large-scale buyers. If the United States, worlds largest market, is your target then you will need certification for a stable long-term business arrangement.

Effective marketing aimed at international markets, not adaptions of domestic marketing campaigns, need to be created. Large buyers are not looking for niche marketing, they are looking for consistency in product, service, delivery, support, and international compliance, at a competitive price.

Japanese aquaculture needs to increase export sales for the continuance of the industry. As Seriola commands about 60% of the market the focus must be on this species. Export can be complicated, a well thought out plan is necessary to avoid catastrophe.

Targeted Increase Export Sales

A fictional Japanese aquaculture company targeted an increase in export sales to North America. The sales division designed new marketing materials and hired an English capable salesperson, new buyers in Boston and Chicago were found. The farm increased stocking to fill the orders and the processing plant made ready for the larger harvest. No unusual problems occurred during growout however, as with every year disease and infections arose. They were resolved following Japanese approved procedures. The fish were filleted, frozen, and packaged to customer requirements. Several containers were shipped to the United States.

Port Inspection

There were no concerns over port inspection as the farm operates to Japan standards and the processing plant is HACCP approved. However, the pharmaceuticals used to control infections were not approved by the US and the cargoes were rejected. The company lost a sizable investment in product and buyer credibility. It will be difficult for them to reenter the market.

Japanese Seriola Production

Annually about 140,000 tons of Seriola are raised in Japan for domestic consumption. Another 7,000 tons or so are exported mostly to North America. The exported tonnage is gradually increasing but it is unlikely to increase enough to make Japanese farms economically sustainable.

Potential of Japanese Seriola

There is high potential for Seriola, it has a short grow out period and can be prepared a variety of ways. Seriola is high in Omega oils and can be compared to salmon in many ways. The US imports about 400,000 tons of salmon annually and consumption of seafood is expected to grow as more Americans eat fish. Unfortunately, Japanese Seriola is not competitive as the industry is small and has not scaled up. Operations are inefficient and costly; few farms have taken international certification that most buyers require.

The Challenge

The Japanese market is shrinking due to an aging and declining population. The industry also faces changing preferences of young people for beef over fish. The future of Japan’s Seriola industry is export and the single largest export market is North America. Seriola farms in other markets have already obtained international certification, scaled up production, and follow US importing laws. Japanese farms need to be aware of and adjust to overseas requirements or find means to make those requirements compatible with Japanese regulations to keep the industry viable.

Japanese have been farming Seriola since the 1930’s and while many think tuna is the main crop, Seriola accounts for more than 60% of farmed species.

In Japan Seriola (Seriola quinqueradiata) is known as Buri or Hamachi depending on the size of the fish and whether the speaker is from the Tokyo or Osaka region. Buri is typically a larger fish of about 5-6 kgs and Hamachi is smaller of 3-4 kgs, for consumption outside of Japan and for simplicity we will call the fish “Hamachi”.

Hamachi is high in Omega-3 fatty acids which have many health benefits such as fighting depression, reduce risk of heart disease, reduced ADHD symptoms and so on.

The nutritional values of Hamachi are listed below

Item	g/100g
Fat	17.6
Cholesterol	5.1
Unsaturated Fat	8.08
EPA	0.94
DHA	1.7
Linolenic Acid	0.09
Linolic Acid	0.19

Hamachi is raised in the pristine waters of Western Japan, primarily in the islands of Kyushu and Shikoku. The fish are processed in HACCP certified plants and registered with the FDA.