93-63 Kodiak Chamber of Commerce Technical Assistance Matching Grant - Fishery Offal ProductsITEM NO. 12.D.3
Kodiak Island Borough
AGENDA STATEMENT
Meeting of: November 18, 1993 Contract No. 93-63
ITEM TITLE:
AUTHORIZATION OF AN ADVANCE OF $50,000 OF MATCHING FUNDS
FOR THE ALASKA DEPARTMENT OF COMMERCE & ECONOMIC
DEVELOPMENT MATCHING GRANT PROGRAM GRANT TO DEVELOP VALUE-
ADDED PRODUCTS FROM FISHING OFFAL.
SUMMARY STATEMENT
The Kodiak Chamber of Commerce and the National Marine
Fisheries Service staff have developed a proposal to produce
high quality fish meal using new technology available from
ACFA Laval. The state requires an up -front cash match to
award the grant. The Kodiak Island Borough funds would be
recovered and returned to the borough when the meal is sold
at the end of the project in March of 1994, so this is
essentially a loan of funds for six months.
FISCAL NOTES
[X] N/A Expenditure Amount
Required Budgeted
APPROVAL FOR AGENDA:
Mayor
RECOMMENDED ACTION: Approval recommended
KODIAK
CHAMBER
OF COMMERCE
P.O. Box 1485, Kodiak, Alaska 99615 19071486.5557
November 3, 1993
Honorable Jerome Selby
Mayor
Kodiak Island Borough
710 Mill Bay Road
Kodiak, Alaska 99615
Dear Mayor Selby,
Enclosed for your review is a grant application for a value added
Project that the Kodiak Chamber of Commeroe has been working on since last
summer. This project's purpose is to evaluate the process for generating
value added products from fishery offal. It is designed to create a higher
value product than is now being produced by fish reduction plants.
The project will prove that it is possible to change the process for
handling fish waste products, create higher value fish meal and oils, and
build a system that is cost effective for use in small plants or comunities
that have only one processing plant. It will also show that it is possible to
make a fish meal that is higher in protein value and lower in ash content.
This combination of factors makes a product that is higher in value.
Preliminary tests have shown that the product produces better results
than traditional feeds used for fish rearing, and has been used with e=ellent
results to feral pigs at the University of Alaska Experimental Farm in
Fairbanks. It is our belief that the project will have direct applicability
in small comunities throughout the Southwest region. Processing plants will
be able to place this equipmment in their facilities at a cost that is not
Prohibitive, and will effectively handle all their fishery offal that may now
be treated as a waste product.
The project must be up and running by January 20, 1994 at the opening of
the first Pollock season of the year. To accomplish this ambitious goal, we
have had to coordinate this project with people and companies from the far
reaches of the map and it has taken much time. The equipment must be shipped
frOM 20th season, Denmark by November 15th to reach Kodiak in time for the January
opener.
Dedicated to Kodiak's Future
At this time we would respectfully request assistance from the Kodiak
Island Borough in the form of a 50 percent match for the grant money from the
State of Alaska Department of Cenmerce and Economic Development. We have
requested a grant from them in the amunt of $100,000.00. The Department
grants coordinator has reviewed the project and believes that this is project
that they can support. To make the grant work the Department needs a match of
$50,000.00 up front. We would ask that the Kodiak Island Borough put the
money up as collateral so that the project can move forward. The project would
reimburse the Borough for the full amount at the end of the project, upon sale
of the fish meal product.
Thank you for taking the time to review this application. We look
forward to working with you on this. We believe that this type of project
will make processing in remote locations more cost effective and ultimately
lead to economic self sufficiency for many of the cors mities in Alaska's
Southwest. Your thoughtful consideration and attention to this grant
application is appreciated.
Yours
in Economic Prosperity,
4 FP
=
Stevens
ti
Director
KODIAK
CHAMBER
OF COMMERCE
P.O. Box 1485. Kodiak. Alaska 99615 19071 486-5557
November 5, 199_
Bonnie Jo Borchick-Savland
Grants Administrator
Department of Commerce
and Economic Development
State of Alaska
P. C). Box _:,=4
Juneau, Alaska 99811-0£'4
Dear Bonnie,
:hank you for taking time from yolr busy sccedule to review
our grant application so quickly. I appreciate the extra effort
you have put forth on this grant. I know that the time frame is
rather limited, but again appreciate your understanding.
Enclosed for your review is the breakdowr. on the
installation and start-up cost line item included in the previous
budget su_-.r.issi1,n. I hope that this provides the detail and
explanation that you were looking for in this budget line item.
Dr. Babbitt has worked very diligently to gat^er this information
and get it to you as soon as possible.
As I menti--ned to you in our phone conversation on Tuesday
November Z, -.d, Mayor Selby was very receptive to tie possibility
of providing a $50,000.00 match for the grant. We will make a
preser.tat__n to the Kodak island Borough assembly on November
17th at a work session. The assembly will then take the matter
up at their r-zulariy scheduled meeting of November 18th for
official a:tion. Once the assembly has deliberated and taken
action, I will notify you immediately of their decision.
Aga:-, please accept my sincere appreciatl:-. of your prompt
attention to t:._s grant application. I am confident that we can
put the pieces t>gether to make this grant application move
forward t= prc.ect status.
Yours in eooncmic prosperity,
Way A. Stevens
Execut_ce -_=e=:or
Dedicated to Kodiak's Future
Breakdown of Installation and Start -Up Costs
As a reference, enclosed is a brief description of the Alfa Laval CONDEC Process
and Alfa Laval FME "AKT" Rendering Unit. For this project only one contherm will
be used to demonstrate that it is feasible to alter existing technology to improve the
quality of fishery by-products that are higher in value.
Steps one, two, and three (mincer, contherm, decanter) will remain the same as
depicted in the Alfa Laval CONDEC Process. However, a three-phase decanter
centrifuge will be used to separate the cooked fish offal into stickwater, oil, and solids.
The solids from the decanter will be fed directly to the AKT dryer. The oil will be used
to provide the energy to the dryer for drying the solids as well as evaluated for other
higher valued uses. The stickwater will be mixed with a portion of the dried meal to be
fed to the dryer. Once the process is started, the process will be continuous resulting in
a high quality fish meal. A Brown Separator will also be used to mechanically separate
the bones from the carcass waste prior to cooking and/or after cooking and before drying
to further improve the quality and value of the meal. %
With this brief background, estimated costs of installation and start-up are:
Installation of Equipment -
Alfa Laval Site Engineer (2 months)- $ 7,000
International Seafoods of Alaska (ISA) Personnel -
Plant maintenance (welder,etc.)($15.00/hr @ 2 wks)- 1,200
Workers (2 at $10.00/hr @ 2 wks)- 1,600
Electricians (2 at $50.00/hr @ 10 days)- 8,000
Fabrication of tote dumper, feed hopper, and discharge bin
for mincing step- 17,360
Fabrication of conveyer system for moving solids from
decanter to AKT dryer- 12,000
Propane for auxillary source of energy to start up process -
Tank (1,000 gal) rental ($500/mo @ 3 mo) 1,500
Propane ($2.15/gal @ 1,000 gal)- 2,150
Regulating value an hook-up to AKT dryer- 750
Start Up -
Propane (24 gal/hr @ 16 hrs)- 400
Training ISA personnel -
Lead people (day & night forman, $15.00/hr @ 16 hr)- 480
Workers (4 day & 4 night shift, $10.00/hr @ 16 hr)- 2,560
Total: $55,000
SENT BY:State of Alaska :11— 5-93 3:.3PM :Economic Development- 1 907 466 7605:9 c
WALTER J. HICKFL, GOVERNOR
DEPARTMENT OF COMMERCE AND Aa. Box I Ioea
ECONOMIC DEVELOPMENT JtWEAU. AL46a ooMfi-osm
PHONE: (a07),esson
DIVISION OF ECONOMIC DEVELOPMENT
November 2, 1998
Mr. Wayne Stevens
Executive Director
Kodiak Chamber of Commerce
P.O. Box 1486
Kodiak, ALS 99616
Dear Mr. Stevens:
This letter is to notify you that your application for funding totalling
$100,000 from the Economic Development Matching Grant Program
(EDMGP) is not eligible for funding as written. The project concept,
which proposes to evaluate the process for generating value added
products from fishery offal, ie something that we are very supportive
of and may be able to participate in if you had matching nonatate
funds. The minimum match ratio is one-to-one cash match using
nonstate funds on allowable expenses. Additionally, we would need
more detail oa each coat line item as some may not qualify under our
guidalinaa, which mAy further inoroaac the ratio of aatnln ll�da to
EDMGP funds. One ac lme item that is in question is the
$65,000.00 which indicates installation and start-up costa.
If you can access nonstate funds and provide additional justification
what specifically each cost consists of, we could then review your
revised request.
Please keep me informed of your roggrr�ss on obtaining the matching
funds if you plan to resubmit under the EDMGP.
BJBS/go042.bjbs
110293c
cc: Tom Lawson, Section Chief
mmm
• M I• I: 91' • • 1 191go
A resoution authorizing the Kodiak Chamber of Commerce staff
to apply for a Technical Assistance Grant from the State of
Alaska Department of Commerce and Economic Development, for the
purpose of evaluating the processes for generating value added
products from fishery offal.
WHEREAS; the Kodiak Chamber of Commerce has made developing
value added processing a priority in its program of work during
the past year and one half; and
WHEREAS; the National Marine Fisheries Service Utilization
Research Laboratory has developed a concept to evalute the
processes for generating value added products from fishery offal;
and
WHEREAS; the principal scientist, Dr. Jerry Babbitt,of the
National Marine Fisheries Service(NMFS) has put together a
project team involving Alfa Laval, Kodiak Reduction Inc.,and
International Seafoods to conduct this study; and
WHEREAS; the project has the potential to create a better
fish meal product, generating a higher value for the product, and
if successful, the technology will have a direct aplicability to
small communities, allowing them to better handle their fish
offal and generate additional income from the by-product; and
WHEREAS; the project includes inkind contributions from all
the study participants in excess of $900,000, that are necessary
to complete the study;and
WHEREAS; the Kodiak Chamber of Commerce has been asked by
the study participants to perform the function of Project
Administrator, and also to apply for a Technical Assistance Grant
to provide the start-up money for the project;
NOW THEREFORE IT BE RESOLVED that the Board of Directors of
the Kodiak Chamber of Commerce here by authorize the staff of the
Kodiak Chamber of Commerce to act in the capacity of Project
Administrator for the project.
BE IT FURTHER RESOLVED that the Board of Directors of the
Kodiak Chamber of Commerce do authorize the Chamber staff to
apply for a Technical Assistance Grant from the State of Alaska
Department of Commerce and Economic Development to conduct this
study.
PASSED AND APPROVED THIS 26th DAY OF JULY, 1993
• � • •i /• I: 91' • • 1191• M
Alan L. Schmitt
President
Ck Yle
La S rah
Corporate Secretary
GRANT APPLICATION
ECONOMIC DEVELOPMENT MATCHING GRANT PROGRAM
State of Alaska
Department of Commerce and Economic Development
Division of Economic Development
Control N
LEGALAPPLICANT: 10 Nonprofit ❑ Government ❑ Other.
1'TA
Applicant Name: KODIAK CHAMBER OF COMMERCE
Organizational Unit: NON-PROFIT CORPORATION 501(c)G Tax I.D. N 92-0031396
Address: P.O. Box 1 5
city: KOD I AK State: ALASKA Zip Code: 9961 s Fax $ 9n7-486-7bn5
Contact Person: WAYNE STEVENS Telephone Number: 9n7 -4R6-5557
ARDOR Organization: 'OUTHWE 1J A Id NFFRFNrF
is ARDOR endorsement attached? Yes ❑ No
PROJECT TYPE: ❑ Capital M Technical Assistance
Project Title: Processes For Generating Value Added Produrts Frnm Fichar4 nffAI
Brief Project Description: Project will determine the feasibility of producing a h.igh
quality protein low ash fish meal by mechanically dehnnin9 fishery nffAl prim *r.
the meal rocess. This new technology
A aska to alter their Drocess to increase the value of rhnrr fish meal Also, this
e sea
rnate by-products; i.e..1 bone meal and crab shell meal.
PROJECT FUNDING: +�
Total Project Cost: ...................................... $ -4c)5.580.00
_
Total Funds Requested from DCED:.......... $ 10.00
Total Applicant Cash Contribution:(.m.X.INDS 1 0.00
Total Federal Funding: ................................ $ -0-
Total Other State Funding: .......................... $ -0-
Total Other Souroes:.As0.a. af...Lish.=A.L $ 120-000.00
LIST ALL FUNDING SOURCES: wait arq.pwwy nmee owmd nr ww I F- ' nunea+l AMM
y�ncy ContaR Nmr TobIRNM owl b 4*W 090
1. ALFA LAVAL Chris Pook (317) 889-4679 ❑
2 RODIAK REDUCTIOTI INC Dan Janes (907) 486-3171 ❑ ® —
3, NATIONAL MARINE FISHERIES SERVICE Jerry Rahhitt Ign71 4A( -151R ❑ ® —
q, INTERNATIONAL SEAFOODS OF ALASKA David RogPrc (9n7) 4R6-5741 ❑ 13 —
s. ❑ ❑
6. ❑ ❑
Economic Development Matching Grant Program funds required by (date): NnyPmhcr 1, 1993
Project Performance Period: From: 11/01/93 To: 03/31/94
NOTE: Copies of all other funding applications related to this project must be Included with this
application.
Authorizing Resolution attached?................................................................................... Yes)j No ❑
'For each $10,000 in grant funds requested, the project must generate the equivalent of one full time job.
:APITAL PROJECTS If this Is a capital project. answer the following questlonas Yes No
1. What is the applicants cash match ratio to the project?
2. Will the project Increase the revenue or tax base In the project area when completed? ........ ❑ ❑
3. Does the project result in the production of a value-added product? ..................................... ❑ ❑
4. What Is that product?
5. Does the project make available locally, a product or service now purchased outside the
region?................................................................................................................................... ❑ ❑
What is that product or service?
6. Will the project result in the retention or creation of jobs in the area? .................................... ❑ ❑
How many? (attach documentation)
7.
s.
9.
Does the project achieve self-sufficiency within five years? ................................................... ❑ ❑
Is there a feasibility study, market assessment, or business plan? (attach to application) ..... ❑ ❑
Identify which study Is attached.
Does the project demonstrate feasibility and achievability within current available or
anticipatedresources?..................................................................................................
■ ■
TECHNICAL ASSISTANCE PROJECTS If this Is a technical assistance project, answer Yes No
the following questions:
1. What is the applicant's cash match ratio to project? 1.2/1
2. Is the proposed activity in direct support of an economic development project? .................... ® ❑
Generating Value Added Products
Identify the economic development project? from Fishery Offal
3. Are qualifications provided for personnel associated with project? (attach) ........................... ® ❑
4. Is the budget reasonable and are fees consistent with industry standards? (attach) ............ ® ❑
5. Will the product of this project have either regional or state Nflicabiliity? .............................. ® 1:1SA8
Attached statement about project
ATTACH ADDITIONAL INFORMATION WHICH SUPPORTS
• AND VERIFIES YOUR ANSWERS.
•
•...•....•....•.•.......•..•..•.....••......••.
CERTIRCATION:
The Applicant certilles dwt:
ITo the bast of my knowledge and belief, Information In this appllcatlon Is true and correct, and ttw 3;;ha;sbeen duly
authorized by the applicants governing body.
T or Print Name: Wayne A. Stevens Sgnature:
ype
TMe: EXECUTIVE DIRECTOR Date: July 17"'1993
APPROVAL
DNM= Dt•aor _
AssiMu t Con I@G1W r
ooh
09-061 (8/91)
DIVWM Ua• Onty
❑ Arwd•d Ode: —
❑ Rooded Data: —
❑ Round for Qaff bn (Deb):
❑ Oftr (•j;pidn):
101196111941111.0 Mlzkol CA WMINN Km MGM
f5►,_• �N�:;:a
SHIPPING COSTS -
SHIPPING OF ALFA LAVAL EQUIPMENT KIX FLASH DRYER FROM
VANCOUVER B.C. TO TACOMA FST. $450.00
TACOMA TO KODIAK EST. $3700.00
SHIPPING OF OTHER COW)ONENTS OF CONDEC SYSTEM 418
DECAANTER CENTRIFUGE 3 PHASEE CONTHERM, PUMPS, BAGGING
EQUIPMENT ECT. FROM SOBORG, DENMARK TO KODIAK AK
INCLUDING PORT DUTIES AND TARIFF ADJUSTMENTS
EST $7800.00
INSURANCE FOR EQUIPMENT DURING SHIPMENT AND DURING
TIME OF PROJECT EST. $2500.00
PRE -PROTECT ENGINEERING AND LABOR TO INSTALL EQUIPMENT
IN FISH PROCESSI G PLANT EST .$10,000.00
EXPENDABLE HARDWARE (WIRING, PIPING, PLUMBING)
EST.$20,000.00
INSTALLATION AND START-UP COSTS EST.$55,000.00
TOTAL CASH EXPENDITURES FOR PROJECT EST.$100,000.00
UTILITIES FOR DURATION OF PROJECT AT I.S.A. PLANT
FOR ELECTRICITY EST .$15,000.00
ADMINISTRATIVE COSTS, AUDIT,AND PREPARATION OF REPORTS
EST .$15,000.00
ADDITIONAL IN-KIND CONTRIBUTIONS LISTED ON FOLLOWING
PAGE EST .$155,580.00
TOTAL IN-KIND CONTRIBUTIONS EST.$185,580.00
In -Kind Matching Monies consist of.
-Alfa Laval CONDEC System complete with KIX Flash Dryer -
(Rental fee for equipemnt alone, supplied for the duration of trial,
exclusive of shipping, insurance, engineering and other costs of
installation and operation).
-International Seafoods of Alaska -
[Plant facilities & Equipment (totes, fork lifts, trucks, etc J].
$500/day for 60 days.
-Salaries of Project Members:
David Rogers -
(ave. 2 hr/day for 90 days = 180 hr x $40.00/hr)
Jerry Babbitt -
(ave. 4 hr/day for 90 days = 360 hr x $35.00/hr)
Ron Hardy -
(ave. 30 hr/mo for 3 mo = 90 hr x $35.00/hr)
Chris Pook-
(Company non -contract agreement- $82.50/hr or $600/day-)
ave. 4 hr/day for 10 days = 40 hr
ave. 8 hr/day for 14 days = 112 hr
ave. 2 hr/day for 30 days = 60 hr
212 hr x $82.50
Dan James -
(ave. 1 hr/day for 60 days = 60 x $25.00/hr)
Ed Stoner -
(ave. 1 hr/day for 60 days = 60 x $20.00/hr)
-Chemical Analyses and Feeding Trials -
Proximate Composition (Protein, Ash, Fat, & Moisture)
min. 60 samples x $65.00/sample = $3,900
Total Volatile Nitrogen (TVN)
min. 20 samples x $25.00/sample = $500
Amino Acid Composition
min. 4 samples x $120/sample = $480
Mineral Composition
min. 4 samples x $50/sample = $200
Pepsin Digestibility
min. 4 samples x $50/sample = $200
Fish Feeding Trial
min. 4 diets x 3 replicates = 12 tanks,
$3.00 tank/day x 12 tanks = $36/day,
$36/day x 2 months = $2,160
m
$ 12,600
$ 3,150
$ 17,490
$ 1,200
$ 7,440
Southwest Alaska Municipal Conference
Putting Resources to Work For People
3300 Arctic Blvd., Suite 203 • Anchorage, Alaska 99503 • (907) 562-7380 • FAX (907) 362.0438
RESOLUTION 93.17
THIS RESOLUTION SUPPORTS THE KODIAK CHAMBER OF COMMERCE IN THEIR EFFORTS TO APPLY
FOR A TECHNICAL ASSISTANCE GRANT FROM THE STATE OF ALASKA DEPARTMENT OF COMMERCE
AND ECONOMIC DEVELOPMENT. THIS GRANT APPLICATION IS FOR THE PURPOSE OF EVALUATING
THE PROCESSES FOR GENERATING VALUE-ADDED PRODUCTS FROM FISHERY OFFAL.
WHEREAS, the Southwest Alaska Municipal Conference has made developing value-added processing a
priority in its program of work during the past year and one half; and
WHEREAS, the National Marine Fisheries Service Utilization Research Laboratory has developed a concept
to evaluate the processes for generating value-added products from fishery offal; and
WHEREAS, the principal scientist, Dr. Jerry Babbitt, of the National Marine Fisheries Service INMFSI has
put together a project team involving Alfa Laval, Kodiak Reduction Inc., International Seafoods and the
Kodiak Chamber of Commerce to conduct this study; and
WHEREAS, the project has the potential to create a better fish meal product, generating a higher value for
the product, and if successful, the technology will have direct applicability to small communities, allowing
them to better handle their fish offal and generate additional income from the by-product; and
WHEREAS, the project includes in-kind contributions from all the study participants in excess of the
$135,000 that are necessary to complete the study; and
WHEREAS, the Kodiak Chamber of Commerce has been asked by the study participants to perform the
function of Project Administrator, and also to apply for a Technical Assistance Grant to provide the start-up
money for the project.
NOW, THEREFORE BE IT RESOLVED, that the Board of Directors of the Southwest Alaska Municipal
Conference hereby supports the Kodiak Chamber of Commerce in its efforts to act in the capacity of Project
Administrator for the study; and
BE IT FURTHER RESOLVED that the Board of Directors of the Southwest Alaska Mun.cipal Conference does
hereby endorse and support the Kodiak Chamber of Commerce in its efforts to apply for a Technical
Assistance Grant from the State of Alaska Department of Commerce and Economic Development tc
conduct this study.
PASSED AND APPROVED BY Tl;SOUTHWEST MUNICIPAL CONFERENCE THIS 18TH DAY OF
SEPTEMBER, 1993. /\I
Richard Wilson, President
-1 11� �l' � 7�•�
M rid kth J. Sandler xecutive Director
Representing the Bristol Bay, Pribilof, Kodiak Island and Aleutian Island areas.
Alfa Laval Sharpies*
October 15, 1993
Kodiak Chamber of Commerce
P.O. Box 1485
Kodiak, Alaska .99615
Attn: Mr. Wayne Stevens
Executive Director
RE: Pilot Plant for Value Added Fisheries By -Products
Dear Mr. Stevens:
Thank you for taking the time to meet with Dr. Jerry Babbitt and myself to discuss
the aforementioned subject.
it is Alfa Laval's desire to work with Dr. Babbitt and other members of the local
community to install a production scale pilot plant to investigate the manufacture
of alternative value added products from materials currently treated as wastes by
the majority of the fish industry and in so doing continue our long standing
involvement In research aetivitles.in Kodiak.
it is Alfa Laval's hope and belief that we can demonstrate an appropriate
technology that will allow small fish processors in isolated locations to produce
products of sufficiently high values to cover getting the products to market and
still put back their capital Investment in a reasonable period of time. These
products could include higher value meals and pharmaceutical oils.
Alfa Laval has been associated with the fish industry for the best part of a
hundred years and during that time has built and/or assisted in the building of
many fish by-products facilities internationally. This experience, coupled with our
position as the world's leading manufacturer of centrifugal equipment (<95% of
the centrifugal separators in the West Coast fishery are manufactured by Alfa
Laval companies) has allowed us to develop some innovative approaches to
producers' problems.
A 9uwness Unit of
Alt Laval Separation Inc. Nora. A^encan Howawriers
20C Soutt Park Soulw ares. Gmenwcoa. ,r4tare 46'.43 95S Meams Rood. war .vw PA • 8974.0556
(31 7) 88351 00. 669-4620 Fax 2.514434000. 4431234 fax
Aft Laval 8harplW
Mr. Wayne Stevens October 15, 1993
Page 2
�:
The pilot plant that we are proposing to supply builds on the well proven
Centrifish system that equips a large percentage of Japanese vessels and also
on the Condec plant currently operated by Kodiak Reduction Incorporated. In this
sense the proposal is evolutionary rather than revolutionary. However the pilot
facility will Incorporate some significant design changes, including a radically
difrcreitit Jry;0y system that we believe results in a highly effective and flexible
system for the manufacture of top quality by-products.
It is our desire, and we understand the community's desire, to have such a facility
in place by 22 January 1994, in time for the pollock opening. However if such a
time trame is to ae met, we need to start making arrangements soon to ship the
necessary material from Europe (up to 6 weeks), Install the equipment (2.3
weeks) and arrange for our technical staff to be on site. Accordingly we request
that you supply an Indication of your intentions by no later than 1 November and if
the project is to go ahead, have the final decision to us by no later than 15
November.
We at Alfa Laval are very enthused about the opportunity that Dr. Babbitt and the
community have presented us and look forward to the opportunity to work with
you on this project.
Yours
XhnstophCT
ook
Alfa Laval
Fish & Meat Engineering
Improving the Quality of Meal from White Fish Processing Wastes
for Aquaculture Feed Applications by Screening and Mechanical Deboning
by
J.K. Babbitt, R.W. Hardy, K.D. Reppond, and T. Scott
Abstract
The proximate composition of white fish meal made from processing wastes was
improved by screening the dried carcass waste prior to grinding it into meal or by
mechanically deboning prior to the meal process. The proximate composition of deboned
white fish meal, in particular, was comparable to that of high quality herring meal. No
significant differences were seen in the average weights of juvenile Chinook salmon fed
diets containing screened white fish meal, deboned white fish meal, or herring meal.
Feed consumption and weight gain were similar among the dietary treatments after six
weeks of feeding. The results showed that the nutritional value of the three diets were
equivalent.
Introduction
Over the last five years Alaska's seafood harvest has grown to over five billion
pounds per year, representing more than half of all seafoods harvested in the United
States (O'Bannon, 1992). The ever-present demand for fish proteins coupled with the
tremendous volumes of fishery wastes available in Alaska provide an excellent
opportunity for the production of fish meal. Fish meals produced from fish processing
wastes, however, are unsuitable as protein sources for aquaculture diets due to their high
ash content. A screening system that reduced the ash content of white fish meal produced
from fish processing waste was recently described by Babbitt (1991). Also proposed was
a method of mechanically deboning the carcass wastes before meal production. This
would reduce the ash content of the final product by removing the bones before the
drying process; producing an even lower ash fish meal. The purpose of this study was
to compare, in a feeding trial, the nutritional value of the fish meals made by both
processes.
Materials and Methods
Sample Preparations.
Pollock carcass wastes obtained from local filleting and surimi processors were
used to make the white fish meals in this study. To produce the screened product, the
wastes were dried at Kodiak, Reduction Inc. (KRI), Kodiak, Alaska, using the Alfa Laval
CONDEC Process shown in Fig. 1. A Gyra-Vib Separator (Midwestern Industries, Inc.,
Massillon, OH) equipped with an 1/8" -mesh screen was used to separate the bone from
the dried carcass wastes prior to grinding it into meal. To produce the deboned product,
a Model 4000 Brown Separator (Brown International Corp., Covina, CA) was used to
mechanically debone the carcass waste prior to processing. Since the commercial rotary
disc steam dryer at KRI was too large, the deboned press cake was frozen and shipped
to Seattle, WA where it was vacuumed dried in a pilot scale dryer.
Chemi_ cal Analyses,
Pepsin digestibility and proximate analyses (moisture, protein [Kjeldehl nitrogen
x 6.251, fat, and ash) of the dried white fish meals were determined by standard methods
(ADAC, 1980). Amino acid composition was determined by protein hydrolysis,
2
Jerry Babbitt
National Marine Fisheries Service
Utilization Research Laboratory
900 Trident Way
Kodiak, AK 99615
June 28, 1993
A Proposal to Evaluate
PROCESSES FOR GENERATING VALUE ADDED PRODUCTS
FROM FISHERY OFFAL
Background
During the last two years, a research project entitled
"Utilization of Fishery Waste Products" has been conducted by the
NMFS Utilization Research Laboratory. The project has been funded
a $35,000 grant from the Kodiak Island Borough. The purpose of
t is study was to determine the quality and nutritional properties
of white fish meal (meal made from carcass waste) when bone
fragments are removed by screening after drying the waste or by
mechanically separating out the bone prior to processing the waste
into meal. The results of salmon feeding trials indicated that the
nutritional properties of the screened meal, and particularly the
deboned white fish meal, were comparable to meal prepared from
whole herring. This is a major break -through, and the results
support the need for further research to determine the feasibility
of producing a high quality protein, low ash fish meal by
mechanically deboning carcass waste prior to the meal process.
In addition, Alfa Laval's CONDECsystem is used throughout the
World to produce high quality fish meal. The advantage of the CON
(contherm- scrape surface heat exchanger) DEC (decanter centrifuge)
system is that it quickly cooks the fish offal, reducing the length
of time the proteins are exposed to heat. This system works
extremely well, but everyone using this system Worldwide prepares
fish meal from whole fish. When Alaska processors ([Kodiak
Reduction Inc. (KRI) is using the CONDEC system] adopted this
system to prepare fish meal from their carcass offal, they found
that the bones were/are very rough on the equipment and maintenance
costs for the system is excessive.
Thus, the proposed research addresses two issues. The first,
is to determine the feasibility ofproducing a high quality
protein, low ash fish meal by mechanically deboning carcass offal
prior to the meal process. The second, it to determine the
performance of the CONDEC system with a KIX Flash Dryer. This new
technoloc will enable large fish meal producers, like KRI, tc
alter their process to increase the value of their fish meal and,
also, this technology may enable seafood processors in more remote
areas to produce fish meal economically from their carcass offal.
Proposed Research
ALFA LAVAL, Soborg, Denmark, will supply a one-two ton CONDEC
System complete with a KIX Flash Dryer (valued at $850,000) for the
purposes of:
-Evaluating effects of mechanically deboning raw fishery
offal on the quality of dried meals.
-Evaluating effects of mechanically deboning fishery offal
on the maintainability of CONDEC ocnponents.
-Demonstrating applications for KIX Flash Dryer.
-Determining the viability of alternate by-products; such
as, bone meal, crab shell meal, and high value fish
oils.
Project Team
Kodiak Camber of Commerce. Kodiak, AK
Wayne Stevens, Executive Director
NMFS Utilization Research Division (Seattle, WA,Kodiak, AK).
Dr. Jerry Babbitt, Project Coordinator.
Dr. Ron Hardy, Technical Leader (chemical analyses and
feeding trials).
Kodiak Reduction Inc., Kodiak, AK
Dan James Production and Marketing Manager.
Ed Stoner, Maintenance Support Manager.
Alfa Laval, Greenwood, IN.
Chris Pook, Alfa Laval Project Leader.
International Seafoods of Alaska (ISA), Kodiak, AK
David Rogers, Plant Operations Manager.
We are requesting $100,000 as "start-up" money for this
project. The money will be used for:
-Transportation and Insurance Coverage
for Alfa Laval Equipment- $15,000-25,000
-Pre-project engineerinq (Alfa Laval and ISA)- $10,000
-Expendable hardware (wiring, piping
plumbing, etc.)- $20,000
-Installation and Start -Up Costs (including
Alfa Laval site manager)- $45,000-55,000
The duration of the project will be for at least 60 days. It
is anticipated that five tons of high quality fish meals will be
produced a day, resulting in at least 300 tons of fish meal. This
fish meal has already been pre -sold for experimental evaluations by
salmon and trout growers for a minimum of $400/ton. Thus, the sale
of the fish meal will cover the operational expenses of this
project.
Prefect Results
The following parameters will be determined during this project:
-Proximate carposition, mineral and amino acid content, and
pepsin digestibility will be conducted on meal products.
-Feeding trials (salmon, trout) will be conducted to
determine nutritional properties of meal products.
-Durability of equipment will be determined by measuring wear
on equipment components and use of spare parts.
-Energy consumption and mass balance studies will be
conducted to determine feasibility of systems.
Duties of Project Members.
Wayne Stevens, Project Administrator, will be responsible for setting up an account and
administering the project monies and record keeping.
Jerry Babbitt, Project Coordinator, will be responsible for monitoring and documenting results
of daily production runs, coordinating activities to prepare appropriate samples for
testing, and preparation of reports.
Ron Hardy, Project Technical Leader, will be responsible for ensuring the proper design of
experiments (chemical analyses and feeding trials) to evaluate products produced during
this project.
Dan James, Production and Marketing Manager, will oversee project and coordinate sources of
fishery offal for project and serve as "contact person" for Project Administrator for
facilitating purchasing, expenditures, and sales of product. All receipts, invoices, etc.,
will be made out to the Kodiak Chamber of Commerce and be given to the Project
Administrator for processing and recording.
Ed Stoner, Maintenance Support Manager, will provide "guidance" to the Alfa Laval site
manager during the installation of the equipment. During the project, since Mr. Stoner
is familiar with the CONDEC system, he will serve as advisor to provide back-up for
repairs and/or maintenance of equipment during project.
Chris Pook, Alfa Laval Project Leader, will coordinate plant operations with David Rogers and
oversee performance of CONDEC system and KIX Flash Dryer.
David Rogers, Plant Operations Manager, will be responsible for the day-to-day operations of
the plant, providing plant facilities and equipment and man power to operate and clean
the CONDEC system and KD{ Flash Dryer.
Qualifications of Project Members.
Wayne Stevens is the Executive Director of the Kodiak Chamber of Commerce, Kodiak, AK.
As executive director, Mr. Stevens has the ability to administer this project.
Dr. Jerry Babbitt is Director of the NMFS Utilization Research Laboratory, Kodiak, AK.
Dr. Babbitt developed the mechanical deboning process using a Brown Separator that will
be used in this project.
Dr. Ron Hardy, is Supervisory Research Chemist at the NMFS Utilization Research Division,
Seattle, WA. Dr. Hardy is Chairman of the Western Regional Aquaculture Consortium
Technical Committee. The consortium consists of representatives from 14 western
regional states to address the nutritional needs of salmonids as well as to maintain the
water quality standards of lakes and rivers.
Dan James is Plant Manager of Kodiak Reduction Inc., Kodiak, AK. Mr. James is responsible
for the operation of his company with gross sales of fish meal over one million dollars
a year.
Ed Stoner is Plant Superintendent of Kodiak Reduction Inc., Kodiak, AK. Mr. Stoner is
responsible for maintaining the CONDEC system being used to produce fish meal at KRI.
Chris Pook is Technical Sales Representative for Alfa Laval Separation Inc. Mr. Pook is
extremely knowledgeable about World production of fish meal and effects of processing
parameters on the quality of fish meal.
David Rogers is Plant Operations Manager for International Seafoods of Alaska, Kodiak, AK.
Mr. Rogers is responsible for the operation of a multi-million dollar processing facility.
WHY Should This Project Be Funded With Public Money?
It is easy to say that "public money is necessary to fund this project because the private
sector in Alaska does not have the financial resources to fund such activities". However, we
feel, that in this case public money is needed to bridge the gap between recent research findings
and actual implementation of the results by industry.
As previously mentioned, a grant from the Kodiak Island Borough addressed a critical
need of Alaska's seafood processors- How to increase the utilization and value of its fishery
waste products. Currently, millions of pounds of fish carcass wastes are discarded each year
by Alaska shore -side processors. Producing fish meal from these carcass wastes using
conventional equipment and processes has been treated more as an environmental necessity rather
than an economic opportunity. Results of our recently completed pilot -scale studies indicated
that new processes can be used to greatly increase the value of the meal.
Thus, we, as researchers, are asking for State financial assistance for this project. Alfa
Laval, as a representative of the food service industry, has made a commitment not only to
continue to work with us but to provide equipment valued at $850,000 for this project.
International Seafoods of Alaska and Kodiak Reduction Inc., as representatives of the seafood
industry, have made commitments not only to continue to work with us but to provide plant
space and expertise. We, as researchers, in turn have established markets for various value
added fishery products. With all of us working together, we will be refining our processes to
meet the needs of the market as well as documenting our results so that others can evaluate our
work.
Thus, we feel, this is an important and necessary step to take before Alaska shore -side
processors leap into this arena. This step is by no means a small one. It is anticipated that 300
tons of various fish meal products will be produced to meet the minimum needs of our selected
markets. Using a 20% recovery rate, this represents 3,000,000 pounds of carcass waste. Thus,
the State's financial support would serve to "jump-start" this project.
As a benefactor of our ocean resources, it behooves us to fully utilize our resources. In
addition, the increased value derived from our discarded resources would add to the economic
well-being of Alaska.
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Biographical Sketch
Dr. Jerry K. Babbitt
Professional Address
NMFS Utilization Research Laboratory
Fishery Industrial Technical Center
900 Trident Way
Kodiak, AK 99615
Tel.- (907)486-1518
Fax- (907)486)-1540
Education
B. S. 1965- Agriculture, Washington State Univ., Pullman, WA
M.S. 1967- Food Science, Washington State Univ., Pullman, WA
Ph.D. 1969- Food Science, Washington State Univ., Pullman, WA
Major: Food Science
Minor: Biochemistry
Work Experience
1969-1975 -Assistant Professor, Dept. of Food Science & Technology, Oregon State
Univ. Seafoods Lab., Astoria, OR;
1972-1973 -Summer School Instructor for Chemistry 101, Clatsop Community College,
Astoria, OR;
1975-1979 -Associate Professor, Dept. of Food Science & Technology, Oregon State
Univ. Seafoods Lab., Astoria, OR;
1979-1981 -Part-Owner and Manager, Pacific Shrimp Inc., Warrenton, OR;
1981-1984 -Supervisory Food Technologist, National Marine Fisheries Service (NMFS)
Utilization Research Division, Seattle, WA;
1984- -Laboratory Director, NMFS Utilization Research Lab., Kodiak, AK.
Research Accomplishments
Authored or co-authored 52 manuscripts in scientific journals dealing with the
chemical, biochemical, and microbiological changes in marine foods during handling,
processing, and distribution. Currently, directing and conducting research on the
biochemical changes that define the post-mortem changes in muscle of selected species
of fish and how these changes affect the processing characteristics and acceptability of
these species by the consumer. The Kodiak Utilization Research Laboratory plays a
leadership role in determining the effects of handling of whitefish resources (pollock and
cod) on the quality, wholesomeness, and safety of various product forms (surimi, fillet,
and minced fish flesh). Research efforts have also been focused on the quality of
Alaska's flatfish reources, especially Arrowtooth flounder, and improving the quality of
fishery waste products.
Namar RooaldW.Ha*
Title: Supervbory Rocacb Chmdst
Addrew. udliaationR1 Dividm
Northwest Fabellas SclanoeCMW
2775 Mou ddre BOWty" FAA
Sew1e, washingtao 98112
Td: (206) 860-3386
Bax: (206) 860-3217
Education: Ph. D. FlsbcdcL UdverSW Of Wasbingtoo, 1978.
M.S. NuWdm Wtahingtm Sate University, 1973.
B.S., zoology. Univers" of Washingm 1969.
Positions Held:
Af5liame RofesUX University Of WuMaW n. School of Fisheries 1992 - PECSM
Affilia10 AWOOSse Professor, University of washb4 m. Sdwot of PJsbed" 1984 -1992
Sgmvnory Research Cbemist, Northwest MsbedeS Cam NMFS, Sewde, WA. 1984 - Present
Racarch Awistant Professoer, University of Washiugtoa Sd *d ofFtshmes, 1978 -1984
Staff Consultant National Academy of Sdcacm Washmgwn. D.C. 1981
Lawson Officer, FAOrt)uiwd Nations Development Programme 1978
Selected Publications (of 80)e
Hardy, R- W. 1993- Casent Inman in Salmonid NuttWM Prot. Amer_ Oil Cheat SOC. In Press.
Hemdy, R.W. aW E Cacao C. 1993. Charactaistim of the Chilean Saimaa Fad Indtnay. Agnacaltmc, In Ptnss.
Doog. F_ M, R_ W. Hardy, N F. Haud. F. T. Buwws, B. A_ Rasco, W. T. FaitYdave, and L P. Forster. 1993.
Chermml crmpositim and protein digesub7ity of ley by -Prod= meals fa salmonid diets.
Aquamipne, in Press-
Rust
ress
Rost M_ B. It W_ Hardy, and R. IL Stidmey. 1993. A new method far fmc &tmftg larval f sL Agaacdwm Ice
Press.
PDoe, L H. and R- W. Hardy. 1993. Shrimp feed mpedim quality studs lir Cmstacra Nut dfim D. M
Alayasma (*d)- 1WG(N Pn:SL In Ansa.
Hardy, R. W. 1992, Fisbeaies Rocesstng By-godaca and dicirReciamtatioa. Pp 199-216 in Inedible Meat,
Pmlzry, and Fishery Produces (Advapas m Meat Research, Va1»e 8). A. M. Peatsou (ed). Elsevier
Science PaNishess Ltd, Essex, Fmglaod-
Hardy, R W. 1991. NuttiCat Regakeax= of Pacific Salmon. Pp 105-121 in Nutrient Requirements of Fish, IL
P. Wt1sm (rd). CRC Prean Inc- Boca Ratan. FL
Hardy. R. W_ 1989_ Diet Ptcparatioo. Pp. 473-5445 In Fish muMMM 2nd Edition, J. F- Halve (od.). Academia
Press NY.
-a DV, 4VU c iv
NVV1Af, ALVl� I I ,
RESUME
DAN JAMES
511 Mozart Circle
Kodiak, Ak. 99615
Work (907)486-3171
Home (907)486-3336
WORK HISTORY: Feb., 1987 to present -- General Manager, Kodiak
Reduction, Inc., Kodiak, Alaska
Sept., 1986 to Feb., 1987 -- Purchasing Agent,
Alaska Pacific Seafoods, Inc., Kodiak, Alaska
Apr., 1986 to Sept., 1986 -- Fish Buyer, American
Salmon Co., Inc., Prince William Sound & Copper
River
Apr., 1985 to Feb., 1986 -- General Manager,
Skookumchuck Seafoods, Kodiak, Alaska
Mar., 1983 to Nov., 1984 -- Plant Manager, Pan -
Alaska Fisheries, Inc., Kodiak, Alaska
Feb., 1983 to Mar., 1983 -- Plant Superintendent,
Ursin Seafoods, Inc., Kodiak, Alaska
Sept., 1981 to Nov., 1982 -- Plant Superintendent,
Pacific Pearl Seafoods, Inc., Kodiak, Alaska
Feb., 1981 to Sept., 1981 -- Office Manager,
Pacific Pearl Seafoods, Inc., Kodiak, Alaska
Apr., 1980 to Feb., 1981 -- Accounting Supervisor,
Pacific Pearl Seafoods, Inc., Kodiak, Alaska
Jan., 1976 to Mar., 1980 -- Purchasing Agent,
Pacific Pearl Seafoods, Inc., Kodiak, Alaska
Mar., 1973 to Dec., 1975 -- Production Foreman,
Roxane Fisheries Division, Pacific Pearl Seafoods,
Inc., Kodiak, Alaska
Education: Graduate, Mankato State University, Mankato,
Minnesota, June, 1972. Bachelor of Science Degree
in Urban Studies.
Boards &
Commissions: Member, Alaska Fisheries Development Foundation
Board of Directors, Dec., 1989 to Present
Community
Involvement: Member, Kodiak Island Borough Planning and Zoning
Commission, Nov., 1992 to Apr., 1986.
Q 907 488 2870 KODIAK REDUCTION 08/09/93 18:48 P03
Charter President of Island Lions Club of Kodiak,
Alaska.
Member. Elks 1,odgm Nn. 1772, Kodiak, Alaska.
Member, Kodiak Area Chamber of Commerce.
Member, Kodiak Seafood Processors Association.
CURRICULUM VITAE
CHRISTOPHER J. POOK B.Sc.
DEGREE
B. Sc. Food Sciences (Hon,)
Graduated with honours from the University of Guelph, Guelph, Ontario, June 1978.
EMPLOYMENT SUMMARY
1984 - Present Alfa Laval
Alfa Laval Separation, Inc.
FME sales
200 South Park Boulevard,
Greenwood, IN, 46143
1-800-468-3709
Currently employed as a technical sales representative to the fish processing industry,
marketing centrifuge based processes for the FME division of Alfa Laval, member of the
Tetra Laval group of companies.
Previously held engineering and technical sales positions with Alfa Laval Canada
SL:NLvIARY OF SKILLS (acquired or used while in Alfa Laval's Employ).
Systems design (drafting and calculations)
Project Management
Administration
Commissioning and service of centrifuges and systems
Training of customer's employees
Sales and Marketing
MAY '93 - Oct '84 Dairy Producer's Co -Op. Ltd.
Position: Food Technologist
Jan 183 - May'83 Reserve officer training at CFB Gagetown.
Aug 180 - Jan 193 Alpha Milk Company
Position: Food Technologist
Jan '79 - Aug '80 Cadbury -Schweppes Powell Ltd.
Position: Food Chemist
Aug'78 - Jan 179 Foss Electric Canada Ltd.
Position: Food Technologist
Z'd Wd3'f::E9 F_5, ct OnIJ
RESUME
DAVID L. ROGERS, GENERAL MANAGER
INTERNATIONAL SEAFOODS OF ALASKA, INC
P.O. BOX 2997
K.ODIAK, ALASKA 99615
EDUCATION:
1967 1959 SAN DIEGO STATE UNIVERSITY, SAN DIEGO CA
196^ lt`T3 U,dI`JERSIT`! OF CALIFCR,NIA, DAVIS. CA`JIS C!1
Sc. HYDROMETEOROLOCY
19.73 U.S. MERCHANT MARINE ACADEMY, KINGS POINT N.Y.
UNIFORMED SERVICE:
NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION
COMMISSIONEC OFFICER CORPS (NDAA CORPS)
RANK: LIEUTENANT, JUNIOR GRACE
WORK HISTORY
1^.9m- GENERAL MANAGER
INTERNATTONAL SEAFOODS OF ALASKA, KODIAK ALASKA
1985 1990 PLANT MANAGER,
I NTERM,A,TICNAL SEAFOOD' OF ALASKA KOOI^K ALASKA
1983-1985 SELF EMPLOYED AS CONSULTANT/ FISHERMAN/ MARINER
INTEROCEAN DEaTCMI COMPANt, SEATTLE WA
GOLDEN ALASKA SEAFOODS CO.
WESTERN GEOPHYSICAL CO.
19?6-1983PLANT MANAGER/ R S D DIRECTOR
INTERNATIONAL SEAFOODS OF ALASKA, NORFOLK `JA.
KOOIAK, ALASKA
19'3-1976 COMMISSIONED OFFICER, NCAA CORPS
SPECIAL SKILLS: THIRD MATE OCEANS ( UNLIMITED)
ABLE SEAMAN ENDORSED AS LIFEBOATMEN
MARINE METEOROLOGY
DESIGNER/DRAFTSMAN
AW A. R, DS: EAGLE SCOUT