Source: HAWAII FISH COMPANY submitted to NRP
INNOVATIVE MARKETING OF HAWAIIAN PONGEE
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0221772
Grant No.
2010-33610-20824
Cumulative Award Amt.
$99,000.00
Proposal No.
2010-00453
Multistate No.
(N/A)
Project Start Date
Jun 1, 2010
Project End Date
Jan 31, 2013
Grant Year
2014
Program Code
[8.9]- Marketing and Trade
Recipient Organization
HAWAII FISH COMPANY
PO BOX 1039
WAIALUA,HI 96791
Performing Department
(N/A)
Non Technical Summary
Pongee (Channa sp.) are an esteemed freshwater food fish in Asia, Hawaii, and domestic Asian seafood markets. Traditional customer preference is for a live product. However, the U.S. Fish and Wildlife Service banned the import and interstate transport of live pongee in 2002. Therefore, the only options to market Hawaii-grown pongee outside of its established range on Oahu, Hawaii are as fresh chilled, frozen, and value-added products. The Phase I project will investigate the feasibility of developing innovative product forms for pongee that traditional and fine dining customers will readily accept in place of the live product. Hawaii Fish Company (HFC)'s long-term marketing goal is to have Hawaiian pongee become recognized as the world's finest pongee, in the way that Cooper River salmon is marketed as the world's finest salmon. The Phase I objectives are: 1) To identify the intrinsic qualities and physical characteristics of pongee from the handling, processing, and marketing viewpoints of seafood researchers, processors, and fine dining chefs; 2) To identify and characterize current and desired retail customers and end consumers of potential Hawaii-grown pongee products; to assess retail customer and end consumer demand for Hawaiian pongee; to assess current and anticipated foreign competition and domestic competition for similar or potentially competing seafood products'; to identify desired product forms and characteristics, including potential innovative processing and packaging options that may enable Hawaii-grown pongee to be successfully marketed in lieu of traditional live pongee; to identify HFC's competitive marketing advantages; to research and assess the positioning and innovative branding options for potential pongee products or product line(s); and to determine a preliminary marketing roadmap and measurable marketing objectives to market Hawaii-grown pongee; 3) To test production protocols in relation to product color and body markings, and to determine appropriate post-harvest handling protocols to support planned processing and marketing efforts for a premium pongee product(s); 4) To determine the projected costs of production, post-harvest handling, processing, marketing, and sales of Hawaii-grown pongee, and to compare these to the market prices of foreign pongee products and to other competitive domestic and foreign seafood products; and 5) To identify and assess potential Phase II partners for development of new and innovative uses of existing production and processing technologies, for development and assessment of innovative new product forms, for implementation of traceability and product safety measures, and for development of packing and shipping methods. The Phase I feasibility research will lay the necessary groundwork for Phase II research and development of pongee products and for Phase III commercialization to enable HFC to market increased quantities of Hawaii-grown pongee to local and domestic Asian seafood "niche markets" and to regional or national fine dining markets, and possibly for export.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60408103010100%
Knowledge Area
604 - Marketing and Distribution Practices;

Subject Of Investigation
0810 - Finfish;

Field Of Science
3010 - Economics;
Goals / Objectives
The specific technical objectives are: 1) To identify the intrinsic qualities and physical characteristics of pongee (Channa sp.) from the handling, processing, and marketing viewpoints of seafood researchers, processors, and chefs; 2) To identify and characterize current and desired retail customers and end consumers of potential Hawaii-grown pongee products; to assess retail customer and end consumer demand; to assess current and anticipated foreign and domestic competition for similar or potentially competing seafood products; to identify desired pongee product forms and characteristics, including potential innovative processing and packaging options that may enable Hawaii-grown pongee to be successfully marketed in lieu of traditional live product; to identify HFC's competitive marketing advantages; to research and assess the positioning and innovative branding options for potential pongee products or product line(s); and to determine a preliminary marketing roadmap and measurable marketing objectives to market Hawaii-grown pongee; 3) To test innovative production and post-harvest handling protocols to support planned processing and marketing efforts for premium Hawaii-grown pongee products; 4) To determine the projected costs of production, post-harvest handling, processing, marketing, and sales of Hawaii-grown pongee, and to compare these to the market prices of foreign products and to other competitive domestic and foreign seafood products; and 5) To identify and assess potential Phase II partners for development of new and innovative uses of existing production and processing technologies, for development and assessment of innovative new product forms, for implementation of traceability and product safety measures, and for development of efficient packing and shipping methods.
Project Methods
The first step in the work plan will be an assessment of the intrinsic qualities and physical characteristics of fresh Hawaii-grown pongee (Channa sp.) and frozen foreign imported pongee to determine the basic physical parameters upon which future fresh pongee processing and marketing efforts must be based. The second step in the work plan will be to conduct a detailed market analysis of the current and potential retail customers and end consumers, of the market environment by market segment, i.e., Asian seafood markets, Asian seafood restaurants, and mainstream fine dining restaurants, and of domestic and foreign competitors. The initial work will include a survey of domestic Asian seafood markets and restaurants, and their customers, in Honolulu. The third step in the work plan will be to determine optimal production and post-harvest handling protocols, and will test the effects of the type and color of containment during grow-out and also during short-term post-harvest purging on final fish color and markings. Work on determining post-harvest handling protocols will examine the effect of stunning or euthanizing harvested pongee by electric shock to determine if such an electric shock will reduce or prevent mucus release, and compare various slime removal methods used by the seafood processing industry with other freshwater and marine fish species. The fourth step in the work plan will be to determine the projected costs of production, post-harvest handling, processing, marketing, and sales of Hawaii-grown pongee. The data for these economic analyses will be obtained from the product and market analyses, the containment production trials, the preliminary processing trials, and from HFC's production and sales records to date. The final step in the Phase I work plan will be to assess and identify potential Phase II partners for development of new and innovative uses of existing production and processing technologies, for development and assessment of innovative new product forms, for implementation of traceability and product safety measures, and for development of efficient packing and shipping methods.

Progress 06/01/10 to 01/31/13

Outputs
Target Audience: The target audience of this Phase I feasibility research effort is Hawaii Fish Company and affiliated research team, with the ultimate planned beneficiaries of this research being the domestic seafood buying public and possibly future customers abroad. Changes/Problems: The problems encountered were the lengthy IACUC protocol approval process and associated costs, and the costs of periodic inspections; and the issues of failing electrical utility service and periodic thefts of research animals. The latter two issues were addressed by the relocation of the research effort to a more secure facility with a more reliable electrical service. What opportunities for training and professional development has the project provided? The PD/PI and Senior Research Personnel have broadened their professional development and understanding of seafood marketing and trade through information exchanges with project consultants, through interviews with seafood industry professionals and customers, and through discussions with identified Phase II collaboratorswhile planning the Phase II research goals and objectives. How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Overview The Phase I feasibility research investigated the intrinsic qualities and physical characteristics of Hawaiian pongee, identified market characteristics and market potential for pongee, tested innovative production and post-harvest handling protocols, determined the projected costs of production, post-harvest handling, and processing so as to clearly demonstrate the feasibility of the marketing and trade of premium-quality Hawaiian pongee products, and identified and evaluated potential Phase II research and development partners. Objective 1. Identify the intrinsic qualities and physical characteristics of Hawaiian pongee The intrinsic qualities and physical characteristics of Hawaiian pongee were independently assessed by faculty and professional staff of the Seafood Technology, Fishery Industry Technology Center (FITC), University of Alaska Fairbanks, Kodiak, Alaska, the Department of Human Nutrition, Food, and Animal Science, College of Tropical Agriculture and Human Resources, University of Hawaii at Manoa (UH), Honolulu, by a James Beard Award winning Chef, and by the President and staff of Hawaii’s largest seafood processor and wholesaler. The intrinsic qualities and physical characteristic of Hawaiian pongee were found by all to be very favorable for the marketing and trade of this Hawaii-grown Asian seafood delicacy. Objective 2. Identify and characterize customers, consumer demand, competition, desired products, competitive advantages, positioning and branding for potential product lines, and preliminary marketing roadmap Primary market research was conducted in Honolulu with the current and potential retail customers, and with restaurant, seafood, and Asian import industry professionals to assess the market environment for Hawaiian pongee by market segment. These analyses included conducting direct face-to-face interviews with a broad cross section of seafood wholesalers, retailers and potential customers, and using customer survey forms with primarily Chinese customers at a Chinatown seafood marketplace and Filipino customers at a large Waipahu seafood marketplace (using translators when necessary). The face-to-face interviews included owners, chefs, kitchen staff, wait staff, and customers at a number of popular Chinese, Thai, Laotian, Vietnamese, and Filipino restaurants; an award-winnning fine dining chef and staff; Hawaii’s largest seafood wholesaler/processor; Hawaii’s largest Asian food importer, wholesaler, and a high-end boutique featuring Hawaii-grown packaged food product gifts for the visitor industry; and local consumers and a group of visiting professional women unfamiliar with the fish. Overall, there appeared to be a strong market for pongee with the Asian population and various Asian ethnic restaurants. Secondary market research was conducted by two experienced out-of-state market analysis firms and via the PD/PI’sparticipation inthe U.S. Small Business Administration (SBA) funded Export University 101 program following the successful conclusion of the Asia-Pacific Economic Cooperation (APEC) 2011 Economic Leaders’ Meeting in Honolulu. Together these multiple efforts revealed both market opportunities as well as potential future competition for market share in the highly competitive national and global seafood marketplace. Objective 3. Test innovative production and post-harvest handling protocols The Phase I research tested: 1) the effect of tank color on pongee skin color, as existing customers expressed unfamiliarity with the dark-colored fish produced in existing black tanks, and the desire for lighter-colored fish, 2) the effect of post-harvest electric shock as a possible means to control excessive mucus release following death as well as a potential means of euthanasia, and 3) the effectiveness of baking soda and apple cider vinegar solutions and salt as means of removing the skin surface slime during processing, as practiced in Europe and elsewhere. Colored Tank Trials Eleven 1,140 liter tanks of different colors (black, grey, white, brown, tan, blue, dark green, lime, yellow, orange, and red) were used under ambient light conditions to test the effect of tank color on pongee skin color. The black tank served as the experimental control. A first production trial was run for three months, and a second short-term holding or purging trial was run for three weeks. The fish were digitally photographed and skin color compared with computer vision analysis by Dr. Won, using the program ImageJ 1.46r (National Institute of Health, USA), Adobe Photoshop, and Microsoft Excel, to determine Total Color Difference (TCD). A composite page of the eleven pongee skin color photos was attached to the customer survey forms used in Objective 2, above, and ranked by the customers at the two local seafood marketplaces who were familiar with the fish, to determine their pongee skin color preference. These survey opinions were then compared to the digital photo analyses. The fish from three colored tanks with similar TCD values were preferred by the customers of both marketplaces. Electric Shock Trials The electrical shocking trials were conducted at the UH Food Science Lab to determine whether electric shock affected the opening or closing of the pongee’s mucus glands on the skin, as a potential means to reduce mucus release. These trials utilized a 30cm x 15cm x 20cm shocking tank powered by an Integrated-Gate-Bipolar-Transistor. Mucus samples were collected on one side of the dorsal anterior portion of the fish before treatment and on the opposing side after 24 hours. The collated data were analyzed and the results indicated that the electric shocks tested did not appear to significantly reduce pongee mucus release. Mucus Cleaning Trials Mucus cleaning trials were conducted with a 2% baking soda solution, a 10% apple vinegar solution, a 50% apple vinegar solution, and with medium grain dry salt . The first two solutions were not very effective in slime removal but the 50% vinegar solution and the salt rub were both very effective in immediately removing the surface mucus (Figure 15). Objective 4. Determine projected costs of production, post-harvest handling, processing, marketing, and sales, and compare to foreign and domestic seafood products The projected costs of production for rearing Hawaiian pongee were determined to be similar to those of producing other carnivorous species in Hawaii, with the highest cost items being imported high protein feeds, ocean and ground transportation, hatchery and farm labor, utility and communication services, vehicle and generator fuel, essential business insurance, and financing costs. Fry are produced in-house and their cost is reflected in all the costs listed above. With the ongoing fish losses associated with a moderately cannibalistic fish such as pongee, particularly in the hatchery and nursery phases of production, the current cost of production based on HFC’s production costs to date is currently approximately $10 to $12.00/kg. Objective 5. Identify Phase II partners for research on innovative production and processing technologies, and development and assessment of new product forms, product safety measures, and efficient packing and shipping methods HFC has undertaken due diligence to identify and involve the most appropriate partners for the Phase II research and development effort to best prepare for planned Phase III commercialization. HFC is excited about the proposed Phase II research and development effort with this team, and feels confident that it will lead to a solid Phase III commercialization success.

Publications


    Progress 06/01/10 to 05/31/11

    Outputs
    OUTPUTS: This project was granted a no-cost extension of time to 01/31/2012. The research efforts are underway but no results are yet available. PARTICIPANTS: Individuals working on project to date have been Ronald P. Weidenbach, Estralita Weidenbach, and David Walfish. TARGET AUDIENCES: Planned target audiences will be seafood markets, restaurants, and consumers. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

    Impacts
    The research effort is a work-in-progress with no reportable findings, results, or other products yet available.

    Publications

    • No publications reported this period