Belgian Seafood Processing Gears Up
As Rising Demand Outstrips Capacity
By JOHN M. SAULNIER QFFI Chief Editor & Publisher

It’s been a busy year for Eric Maas, director of HSI Holding. “Christmas buying has been good, and our Oostende plant is operating at full capacity – so there is no reason to complain about business,” he says.

Morubel expands factory to keep pace with demand and reduce lead time between booking orders and making deliveries. Atka will boost packaging capacity to meet volume surge.

Seafood processing companies in Belgium were working overtime to keep up with holiday orders, and their executives voiced optimism about prospects for 2004 when QFFI came calling in mid-November during the magazine’s annual survey of the Benelux frozen food sector. Importers of value added products in the Netherlands were also relatively upbeat about the market, while flatfish processors in Urk expressed concern that further EU-mandated quota cuts would deprive them of North Sea resources needed to keep plants operating efficiently.

“Output this year is up, so we are not losing money. In today’s environment this is good, considering that overall volume in the marketplace is down,” said Eric Maas, director of HSI Holding and managing director of its Morubel unit. “Christmas buying has been good, and our Oostende plant has been operating at full capacity – so there is no reason to complain about business.”

A new line has been added to the Morubel factory to meet rising demand for shrimp. The expansion increases plant capacity by 70% to 17,000 tons of raw, blanched and cooked seafood output per year. The main activity is processing and packaging warmwater prawns – primarily imported Penaeus species such as cultivated black tigers and sea-caught pinks and browns, plus freshwater Macrobrachium rosenbergii. Also produced are multiple-ingredient seafood cocktails made from shrimp, squid, mussels, clams and/or surimi.

Meanwhile, Atka NV of Puurs, Belgium, is among a number of shrimp processors that have picked up bonus business as a result of the bankruptcy of Ken Bell International in the United Kingdom.

Replacement suppliers for the Newcastle-headquartered shellfish specialist were lined up after debts of approximately £7 million forced it into receivership [See related story on next page.]. Last November the company, which reportedly rang up sales of more than £40 million in 2002, shut its Longbenton factory doors for good.

“We are packing for a number of former Ken Bell customers,” said Jean-Paul Dierckx, managing director of Atka. “Our plant is working two shifts day and night, Monday through Saturday. But this would be the case even without the extra business coming from the disappearance of Ken Bell production.”

With its 10,000 ton per year packaging line opera-ting at full capacity, a decision was taken to dedicate an additional 2,000 square meters for plant expansion. By April there should be enough capacity to boost output by 1,500 tons per annum, and by the end of 2004 the figure will likely rise to an extra 3,000 tons. That will give Atka total capacity to produce 13,000 tons a year.

“New customers can’t be taken on at the moment because of lack of spare capacity, so there is no choice except to expand,” said Dierckx. “Normally we can deliver an order within 10 days of receiving it, but now it takes us 14 to 17 days. Still, that’s not bad considering that others in our business need up to six weeks of lead time.”

Atka is faced with, as they say in Europe, a “luxury problem” brought by a seasonal spike in demand from clients stocking up for anticipated Christmas and New Year purchase booms, coupled with the departure of a major shrimp cooker from the European market. Both companies are convinced that there is no time like the present to invest in plant upgrades that will keep them rolling well into the future.

Sourced from the Pacific waters off Costa Rica, Deepwater Red Shrimp from Morubel are ideal for sushi and sashimi preparations. The coldwater species (Heterocarpus affinis) is distributed frozen in bulk as well as in customized retail packaging.

Morubel has spent approximately £4 million to build a new line – and for good reason, as it is difficult to sustain a seven day per week operating schedule over the long haul. Private label jobs – which account for more than 90% of throughput – will be processed more efficiently with reduced lead time between orders and deliveries.

“We were at the point where it was impossible to squeeze out even one more kilo of finished product per day,” commented Ralph Sanders, quality assurance manager.

Not that Morubel had to rush into an expansion project, far from it. “The plans were actually drawn up in 1999, just six years after startup of the most high-tech factory of its kind in Europe. So we have had plenty of time to prepare for implementation,” said Eric Maas. “Soon the new line will be fine-tuned and running like clockwork, so we will be well positioned production-wise for at least a few more years.”

The HACCP-, ISO 9002- and British Retail Consortium-certified facility assures clients full traceability of all raw materials and ingredients that are utilized in production. Fully automated processing is controlled from a Lauer touch screen at which everything from cooking temperature and speed to water pressure and freezing times can be monitored and adjusted as required.

Completion of the plant expansion came just a few months ahead of the company’s 50th Anniversary on January 25. Golden Jubilee celebrations will take place throughout the year.

Morubel started out in 1954 as a salted cod exporter doing business as “La Morue Belge.” It was not until the 1970s that production of frozen products began.

Reliable supply lines, which are of paramount importance for any processor of tropical shellfish, became more diversified after Morubel became part of the Heiploeg Shellfish International (HSI) Group of companies in 1999. Until then it was overly dependent on shrimp imports from Southeast Asia. Today the company has lessened that reliance somewhat by turning to a new resource: head-on, shell-on Xiphopenaeus kroyeri seabob caught by trawlers in the Atlantic Ocean off the northeast coast of South America. The block frozen species has particular appeal among consumers in the United States, where much of it is shipped.

“The HSI Group includes three companies in Guyana and Surinam, which are increasingly a good resource for us,” said Maas, who also serves as managing director of those operations. He is an old hand in Latin America, having chalked up a lot of pre-Morubel experience there as a seafood sourcing specialist for a large Dutch hotel and restaurant chain.

Guyana Investment Ups Output

A major investment was made in HSI’s Noble House Seafood plant in Guyana during 2002, as eight more shrimp peelers were installed to keep up with landings fed to the factory by a fleet of over 60 trawlers. The company runs 47 of the vessels itself, of which two pack head-on, sea-frozen product for clients in southern Europe.

Relatively new to Morubel’s range is Heterocarpus affinis red shrimp imported from Costa Rica. Caught off the Pacific coast, the coldwater product is ideal for raw consumption in Japanese-style sashimi or sushi preparations. IQF distribution is in units of 60 to 80 per pound.

“Being in charge of our own raw materials not only provides greater quality control, but gives us greater security,” said Maas. “I expect that we will increase sourcing from South America in the future.”

Meanwhile, on the value-added appetizer front, Morubel has reported favorable response from buyers interested in its Crispy Mediterranean Seafood Mix. Launched at the European Seafood Exposition in Brussels last May, it features an assortment of mussels, shrimp, squid, smelt and cockles that are battered for deep-frying and packed according to customer specification.

Unfortunately, the trade has not been as receptive as had been hoped for its Seafood Delicatess range of fishery products in sauce packed in stand-alone, metal foil bags. “It’s done all right in the United Kingdom, but movement is slow in Germany,” reported Maas. “In Belgium, France and Spain, it would seem that end users prefer to make their own sauce.”

Atka Concurs

Jean-Paul Dierckx of Atka has come to the same conclusion about Cuisin9 sauce-coated shellfish. “Development of markets for our range of table ready prawns has been slow,” he told Quick Frozen Foods International.“While there is interest, volume has not met expectations. Apparently most consumers in Europe are not quite ready for finished shrimp products. They want to add their own finishing touch.”

Still, the company has no plans to stop offering the line – which features prawns coated in sauces ranging from lobster and creamy garlic to diabolo, fine herb, curry and garlic butter. “We produced 220,000 units for a German customer during the third quarter of 2003,” said Dierckx. “A big client in Spain is also being supplied, along with a good customer in the United Kingdom.”

As a longtime specialist in importing and processing warm water shrimp, the managing director was pleased to report that supplies are plentiful at the moment, following an artificial slowdown in the pipeline during 2002. Asian exporters, intent on maintaining business in Europe, have intensified quality control measures to meet stringent EU inspection regulations which call for zero tolerance of banned residues such as nitrofuran, chloramphenicol and other antibiotics.

“We work only with reliable suppliers which are BRC-approved and provide laboratory certification for the wholesomeness of everything they ship,” said Dierckx. “So sourcing is not a problem. Raw material supplies of most sizes, ranging from U-5 on up, are more than ample.”

Dierckx voiced some concern about the sharp downturn in black tiger shrimp prices, and the effect it could have in the future if money-losing aqua-farmers decide to appreciably cut back on cultivation. “The price is completely collapsing, and nobody knows where the end might be. It is no longer sustainable relative to the cost of production,” he stated.

Atka distributes over 25 different kinds of frozen shrimp to wholesale, retail, foodservice and industrial customers. Products range from Indonesia-sourced head-on, peeled and deveined black tigers, to headless, shell-on monodon from Bangladesh, and value-added skewers from Thailand. Karikadi seawater prawns are imported from India and Vietnam, while freshwater rosenbergii originates from numerous Asian countries.

The company supplies industrial makers of ready meals and recipe dishes with products cooked and further processed at its state-of-the-art factory in Belgium. The plant is able to cook up to 1,800 kilograms per hour, and has capacity to freeze 3,000kg during the same time frame.

“We are doing more business than ever with industrial accounts, which now take approximately 45% of our production,” said Dierckx. “This provides a good measure of stability for all involved, because prices are generally locked in for a six-month per-iod.”

Interestingly, Atka has stepped up trading activities in shellfish and fishery products at a time when many players have backed away from the buying and selling of commodities due to high risks and low margin potential.

Atka’s Philippe Windey heads up the trading operation. A sophisticated computer program enables him to pre-sell virtual containers, mixed pallets or lesser carton counts of everything from frozen blocks of cat tiger prawns and IQF pink or brown shrimp to pangassius, Alaska pollock, wild salmon and snow crab meat. The goal is to sell all stock while it is still on the water in transit to the Port of Antwerp or other destinations.

“We don’t want to hold much product once it is discharged from the vessel, but rather to keep it moving along with cash flow,” said Windey. “Computer technology is a good tool that helps us a lot when properly used.”

Another major strength of Atka is its ability to accurately gauge costs at the producer level. “We get daily reports from our agents in Bombay and Chenai, which keeps us on top of prices that farmers are paid for raw materials,” said Dierckx. “We also closely monitor prices paid by buyers in Japan and the United States, as well as in Vietnam. A lot of product is going to Vietnam for re-packing.”

In the end, adroit analysis of data flows enables Atka to direct a diversified supply line to advantage, and act quickly on minor price shifts which could pay off with major dividends.

Puurs, Belgium-based Atka, which specializes in processing shellfish, has stepped up its seafood trading operations. A sophisticated computer software program enables it to reduce risk and maximize sales while product is still in containers on the ocean en route to Europe from Asia. Philippe Windey (at right) is in charge of trading for all of the company’s Europe offices, which span the continent from France to Spain. Seen standing is Jean-Paul Dierckx, managing director.

“A big part of our expertise lies in knowing what product costs are and where the market is heading,” said the managing director. “Armed with that information, we start to buy when the time is right. We have the financial capacity to procure full container loads. This is something fewer and fewer importers can afford to risk anymore. Some of those traders are now buying through us, which is fine.”

Fishermans Choice

For Bernard Slothouber, the decision to leave the seafood commodity trading sector almost a decade ago and start a branded business was not a difficult choice to make. In fact, it was easily a Fisherman’s Choice. That is the name of the proprietary label emblazoned upon colorful packaging that sets Slothouber Seafood’s range of value added products apart from competitors in retail freezer cases.

From black tiger prawns and cocktail shrimp to dim sum, halibut fish satays with sauce and surimi party chunks, the two-tone, ocean blue packs have made a big splash in European supermarkets.

Turnover was brisk last year, to be sure. By mid-November receipts were already up by 26% over 2002. Volume had actually advanced in excess of 40%. That’s pretty good considering Europe’s sluggish economy.

Having firmly established itself over the years as a purveyor of high quality oriental style shrimp-based finger foods as well as other seafood delicacies made to exacting specifications in Southeast Asia, the Den Haag, Holland-headquartered company is broadening its scope in 2004 with the introduction of frozen sushi toppings in new retail packaging. The range will be marketed under a distinct, soon to be unveiled brand.

“We will differentiate the sushi line by both name and package design, which will feature black and red colors rather than blue,” said Slothouber, who is managing director. “Mixed boxes will be distributed containing 36 vacuum-packed pieces of assorted selections, which are convenient for parties and catered events in general.”

Apart from the finished sushi line, Slothouber delivers a full range of toppings used by further processors as well as by caterers and home consumers. Ranging in weight from six to ten grams, they include: sushi ebi (cooked butterfly shrimp) and ama ebi (raw, peeled, tail-on shrimp), sliced mongo ika (raw sepia fillets), sliced roasted eel, boiled octopus, hoso maki (crab-flavored surimi sticks), salmon neta, tuna slices, vinegar-seasoned itoyolli, and oilfish slices.

As a seafood products importer and distributor with more than 20 years of experience, Slothouber has built up a solid clientele base numbering some 500 retailers, wholesalers, cash and carry outlets, caterers and industrial accounts. Branded business is largely emphasized, as more than 100 different items are offered. However, the company also supplies private labels.

“Our home market is now covered quite well, but we can still grow in Holland by increasing listings with existing customers,” said the managing director. “Meanwhile, we are working to secure new accounts in our second most important market – Germany.”

France has been quite receptive to Slothouber products packed as store brands. Elsewhere, new opportunities are being eyed in Belgium, the UK, Scandinavia and Switzerland. It is also prospecting further east – specifically Hungary, the Czech Republic and Russia.

“The introduction of innovative products, such as the new ‘30 Oriental Croquettes’ offering, is a crucial part of our marketing strategy,” said Slothouber. “It retails for under six euros.”

The managing director concluded by emphasizing the importance of maintaining price stability as a tool for building sales. After fixing an agreed upon price for a period of six months, both buyer and seller can concentrate on working together to stimulate greater demand among consumers.

Primstar Shines Brightly

Another savvy businessman who made the transition from fishery products trader to become a marketer of value-added seafood products and exclusive importer of high-value shrimp is Eddy Koppers, chief executive officer of Primstar BV. His Ambacht, Holland-based firm, which specializes in distributing sea-frozen prawns sourced from Nigeria, was as busy as ever in 2003 moving some 4,000 metric tons of high value Prim7Stars brand product supplied by Atlantic Shrimpers Ltd. (ASL).

“The market for wild-caught shrimp has been good up until now, and we have full confidence that it will remain strong through the upcoming holiday period,” Cor Bal, sales director, told Quick Frozen Foods International on Nov. 20. “Our fishing grounds are healthy, and catches off the west coast of Africa are stable overall.”

ASL, which is under the direction of Chief Executive Officer Manjit Sataranganis, operates a fleet of trawlers out of Lagos that ply Nigeria’s tropical waters. The soft mud bottoms of the Bight of Benin, Gulf of Guinea and Bight of Bonny are where most of the ocean bounty is netted and plate-frozen aboard ship to lock in freshness of Penaeus notialis whites, brown, tiger and cappa shrimp varieties. Other products harvested from the nation’s exclusive economic zone range from crab and cuttlefish to redmullet, lobster and octopus.

Eight new vessels were added to the fleet during 2003, in an ongoing renewal process which will see 24 additional trawlers further modernize the flotilla in the near term. Most boats feature twin-rigged otter trawls.

Southern Europe is the primary destination for Prim7Stars product, which is packed in 500g retail boxes.

Primstar BV is a unit of Giko BV, which is also headed up by Eddy Koppers. His expanding holding company now participates in nine seafood operations. Among them are:

• Welmar Europe BV (which specializes in processing and distributing value-added North Pacific seafood products including salmon, pollock and cod);
  
• Gambafresh SA (a sales organization in Spain that has expanded into whole shrimp cooking);
  
• Grupos Peccis SA (an aquaculture operation in Mexico engaged in Penaeus vannamei production);
  
• China Starfish Ltd. (a PRC-based enterprise that specializes in producing fish fillets made from salmon, pollock and other raw materials).

“Our activities are really booming in China,” said Bal. “Giko has invested in a 56,000 square meter factory in Qingdao that employs approximately 900 people. Construction has already begun, and the plant will become fully operational.