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Emerging Fisheries Development Project Summary: FDP 395 2002
Government of Newfoundland and Labrador
Preliminary research carried out by Applied Preservation Technologies
Inc. (APT) indicated that there was a growing market for products
that could be produced from shell waste materials, including crab and
shrimp waste
from local processors.
While there are several producers of the shell waste raw material in
Newfoundland and Labrador, no company has made the next step of value-added
processing into products including carotenoprotein and chitin/chitosan.
Carotenoprotein is used to enhance flesh color in fish (salmon)
and for sunburn and immune system protection in humans.
Chitin/chitosan is also used in such products as pharmaceuticals, food
additives,
water treatment systems, and cosmetics, APT Inc. has the advanced technology
to
produce high-quality products in a more costeffective manner than current
industry players. Based on the intense competition in the pharmaceutical
and neutraceutical industry in China, Norway, India and Japan, marketing
research was critical.
Given this opportunity, APT, with funding from the Fisheries Diversification
Program,
focused on the extraction of chitin/chitosan and carotenoprotein from
shrimp and crab
shells. This would be followed by further production of enzymes, flavourants
and gelatins
from the same type of raw material. The ultimate goal of the project was
to utilize 100% of available shell waste, add substantial value to the
company and create additional employment.
Background
APT, a biotechnology company located in St. John's, Newfoundland and Labrador,
is
involved in research and the potential commercial development of value
added products
from Shellfish waste. The company's growth has resulted from a partnering
strategy involving private sector companies, research centers and government
.
The company also works in partnership with Grand Atlantic Seafoods Inc.,
a Newfoundland and Labrador Product and Market Development of Carotenoprotein
and Chitin/Chitosan from Shell Waste
Introduction Seafood Company
In addition to being a part-owner of the company, Grand Atlantic
Seafoods Inc. has a large supply of raw material from two crab plants
and one shrimp operation which it will use to potentially supply a value-added
carotenoprotein and chitin/chitosan production plant.
Methodology
The marketing initiatives carried out by APT included sample production
of chitin, chitosan and carotenoprotein, as well as optimal extraction
process determination, sample
shipment to customers, and market identification. The company participated
in the New
England Trade Mission and BIO 2001, a biotechnology conference and trade
show in
San Diego, California. Promotional material was developed, and research
carried out on
labeling, regulatory and reporting issues.
Results
APT has gained considerable knowledge as a result of marketing intelligence
and trade
show attendance through this project. Trade shows allowed the company
to meet customers and discuss products, production processes and marketing
requirements. A
number of partnership arrangements with national producers were considered.
A comprehensive promotional package assisted in creating product awareness
of the benefits of carotenoprotein and chitin/chitosan products
processed from Newfoundland and Labrador shell waste.
This generated a high degree of interest, especially from a supply and
quality
perspective. Promotional materials including posters, business cards and
brochures were
quite effective. A research company in Asia carried out the chitin extraction
using a lab scale setting. The company conducted a literature search,
lecture preparation and training notes for potential training of APT employees.
The results of this work were positive.
The new extraction technique has the potential for providing a medical-grade
chitin suitable for application in the biomedical market. The company
has also investigated a second extraction method that does not use chemicals.
In conjunction with Biopolymer Engineering Inc.(BEI), an extraction process,
using a bacterial fermentation technique, was investigated. This process
produced a good
grade of chitin, and as a result, follow-up discussions and additional
research took place.
APT and BEI are currently working in partnership to establish a pre-commercial
chitin
extraction facility in Newfoundland and Labrador.
Conclusion
Product and market development of carotenoprotein and chitin/chitosan
from shell waste
were successful in the determination of optimal extraction technologies
aimed at identifying the most suitable process that would maximize yield,
quality and cost effectiveness.
APT is now in a position to move on to the next phase of development.
Pending the success of future research and market development, the company
will build a commercial
carotenoprotein and chitin/chitosan extraction plant in Newfoundland and
Labrador. This will provide 30 to 40 new jobs, in addition to adding value
to waste materials.
Department of Fisheries and Aquaculture
Government of Newfoundland and Labrador
P.O. Box 8700, St. John's, NF, A1B 4J6
Call: 709 729-3732 / Fax: 709 729-6082
Web: http://www.gov.nf.ca/fishaq/FDP
(Or a DFA Regional Office near you)
The $10 million Fisheries Diversification Program is part of the $81.5
million Canada-Newfoundland Agreement Respecting the Economic Development
Component
of the Canadian Fisheries Adjustment and Restructuring Initiative.
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