Saturday, April 27, 2013

A "PERFECT STORM"


It has been a week of filled with several distressing news stories from around the world concerning shrimp farming, diseases, and the economic impact for global consumers.  That said, this is just more good news for our company as we move to expand production. Articles continuing to report news like the following will impact pricing on all sizes of shrimp.

 At the European Seafood Expo (April 23-25, 2013), Cui He, vice Executive President of CAPMA, the Chinese Aquaculture Producers Marketing Association, said that early mortality syndrome (EMS) was a continuing problem in Southern China and that China expected to import more shrimp from India, Indonesia and Ecuador.  He indicated that the imports would probably increase world shrimp prices. 
                   Source: Seafood.com (an online, subscription-based, fisheries news service).   

                     The article below also appeared this week.
April 23, 2013
Europe: 50% of Shrimp Imported from Southeast Asia Is Short-Weighted
 According to a recent investigation by Belgafood, the association of Belgian food importers 50 percent of the frozen shrimp imported into Belgium, France, Germany and the Netherlands from Southeast Asia is short-weighted because of over-glazing. Out of 240 samples, 120 of them weighed from 3-28 percent less than what was indicated on the label. “It’s a very widespread problem,” said Olivier Hottlet, president of Belgafood.  “What we did was to remove the glazing from the product, weigh it and compare it with its label.” The use of protective glazing for frozen seafood products is a common practice to prevent dehydration and to deliver a quality product.  The practice of glazing is perfectly legal as long as glazing levels and product content are labeled correctly on the pack.  But, since water is cheaper than shrimp, some companies are tempted to over-glaze.  Customers wind up paying for ice. 
Hottlet said the study results are known to the European Commission, and it is “very interested”, but doesn’t intend to take any action.  If, however, individual member states did start investigating, he said, the EC is “ready to coordinate and broaden...the investigation at the European Union (EU) level.” 
Hottlet suspects fraud on a similar scale in southern European countries such as Italy, Greece and Spain, which import most of their shrimp from South American producers.
(Source: Boletin Informativo (Cámara Nacional de Acuacultura, Ecuador’s National Aquaculture Association).  Editor, Jorge Tejada (jtejada@cna-ecuador.com).  Illegal shrimp Overglazing “Widespread” in Central Europe.  April 16 2013).

For those of us who for the past decade have been screaming about this and other atrocious practices common throughout the aquaculture industry, this is too funny (Not "ha ha" funny, incredulous funny).

People in the aquaculture industry think this is news.

Go figure !!!!! 

We have been saying this for years and falsified weights are not limited to "glazed" shrimp.

The liberal use of additives, preservatives, and other forms of breading and even coconut breading all mask the weight of the actual shrimp by 10-25%. This has been a common practice in the industry in many countries for years. 

Articles like the two above are just examples of a myriad of related issues that underscore why we have spent over a decade developing our production system and our technology.

The growing awareness of these and other issues plaguing the traditional production of farmed seafood combined with a growing awareness of the damage we are doing by “over fishing” the oceans may also explain why suddenly in just the past year there is so much interest in our technology and production system. 

Weight fraud is just the tip of the iceberg of deeper underlying problems and these are not confined to the shrimp industry.

In addition to the liberal use of additives, preservatives, and other forms of breading and even coconut breading to increase actual weights, other common world wide practices include the overuse of carcinogenic compounds to retard degradation and mask spoilage, knowingly using contaminated feeds containing banned substances banned or human use, the widespread use of poultry offal as feed both as supplemental and very cheap protein sources and as a primary feed, the use of human waste and the list goes on.

This does include the enormous harm traditional aquaculture does to the environment by returning untreated raw waste water to the oceans and the destruction of mangroves which are essential to marine nursery systems as well as the “siltation” of pristine coast lines and reef areas from erosion and run off. 

We knew 12 years ago we could do better. 

Two major reasons we are so confident that our technology will allow us over time to compete profitably in the production of even smaller sizes than we now grow as a harvest target (such as U-20's and 21-25 counts) are 1) we believe prices for  all sizes of shrimp will continue to increase due to disease causing supply interruption an 2) the entire world is getting much more conscious of transparency in the food source chain.

Alarming increases in cancer in many national populations and increases in food borne diseases from improper processing and refrigeration have heightened consumer sensitivity and concern for where there food come from and how is it handled. .

12-15 years ago I was aghast as I saw these practices everywhere I went around the world, that is why I was determined to produce marine protein in a better and safer way. 

(And frankly nothing has changed).

We are sitting in a perfect position to expand production of jumbo white shrimp and over the next 3-5 years bring several species of fin fish to the market place as a "perfect storm" of disease, environmental degradation, and an increasingly concerned global consumer is demanding transparency in the supply chain so they can be assured what they eat, and what their children eat, is healthy, safe, and does not destroy the planet. 

All of the conditions above and more, will create a large (global) and profitable demand for our technology and production.  And the environment and the consumer will profit as well.

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