Winds of Change in Japan's Seafood Industry

[SPECIAL EDITION]
This series provides updates and new perspectives on selected stories from BIZ STREAM's signature "On-Site" reports.

This episode shows how companies in Japan's seafood industry are adapting their business models to overcome challenges and increase sales.

*Subtitles and transcripts are available for video segments when viewed on our website.

Winds of Change in Japan's Seafood Industry

With only certain types of fish being considered valuable, a sizeable portion of fish caught by professional fishermen end up being discarded. Wanting to eliminate this waste and make use of as much of their catch as possible, a Japanese company has come up with a unique business model that allows them to sell most types of unwanted fish.

Standard fish feed is usually made from powder containing a large amount of actual fish meat. However, rising costs have inspired a feed producer to create a new affordable type of fish feed that contains no fish meat and is made primarily from plant-based powder.

Transcript

00:30

With the cost of standard fish feed being highly volatile,

00:33

One company has come up with a plant-based feed to provide fish farmers with a more stable alternative.

00:40

Another company is taking difficult to sell fish and turning them into a variety of delicious food products.

00:49

Today's On-Site Report features businesses that are tackling current issues facing Japan's seafood industry.

02:07

When fishing nets pull in their catch, they contain different types of fish.

02:11

In addition to the desirable fish, they also pull in various types that are difficult or impossible to sell, which are called bycatch.

02:19

For example, this lionfish.

02:22

The poisonous spines on its fins make it difficult to process.

02:26

Or, this type of filefish that's considered edible, but is difficult to sell when it's not in season.

02:33

Other fish can be considered bycatch because they don't meet size requirements

02:37

or because they just don't look appetizing enough for consumers.

02:42

Because they're considered unsellable, bycatch fish are usually discarded or sometimes used as bait.

02:49

Our crew recently traveled to the southwestern city of Fukuoka,

02:53

to meet Inokuchi Tsuyoshi who has started a business that makes use of bycatch.

03:00

Years of working in the seafood business made him aware of the large amounts of fish that were going to waste.

03:09

It's hard to see any kind of fish go to waste,

03:11

but especially fish that are being thrown away for reasons that have nothing to do with their quality or flavor!

03:19

Good morning!

03:22

Inokuchi sources the fish from a buyer who regularly purchases from several different fishermen.

03:28

From St. Peter's fish and Stargazers to Spotted Tail Morwong,

03:33

the middleman doesn't just source the fish for Inokuchi, he even does some prep work to keep them fresh!

03:43

Some species, require a little more work than others.

03:49

For example, certain types of fish, like this tilapa,

03:52

have completely different bone structures and require a skilled professional to debone them.

04:01

Inokuchi has come up with a variety of ways to season and flavor bycatch fish

04:06

in order to accentuate their unique flavor and texture profiles.

04:12

From thinly sliced gurnard in soy sauce marinade to emperor bream in herb oil confit,

04:19

the company currently uses over 50 different seasonings to flavor its fish.

04:28

Since Inokuchi has no control over the amount or type of fish that comes in with each delivery,

04:33

he has created a unique business model to sell them.

04:38

In March of 2021, he opened a seafood box subscription service

04:43

where registered clients across Japan can regularly receive different types of rare fish delivered right to their door.

04:51

In less than 3 years, the company has already surpassed 11,000 subscribers.

05:00

Nanami and Daisuke Suzuki have been customers for about 6 months.

05:06

On the day we visited, they were trying yellow croaker marinated in soy sauce.

05:11

They chose to serve it on a bowl of white rice with raw egg on top.

05:20

"It's really tasty!"

05:22

"Offering rare types of fish is a great idea!"

05:27

"We look forward to each delivery!"

05:32

Depending on the way we season or flavor it, any type of fish can become a hit.

05:36

By offering this service, I hope to provide our clients with a broad range of tasty fish

05:42

while reducing the amount of bycatch that goes to waste across Japan.

07:04

Along the coast of Ehime Prefecture...

07:06

Sea Bream farms are thriving.

07:09

The feed these red sea bream are eating differs from standard feed and doesn't contain any fish powder at all.

07:17

After seeing volatile price swings in the fish feed market,

07:20

Aquaculturist Akasaka Ryutaro decided to try developing fish feed without fish powder.

07:28

Nearly 3 quarters of our costs usually go into fish feed.

07:31

When fish powder runs low, feed prices can sky rocket, like they did 5 years ago when they increased by about 30%.

07:40

Akasaka, also felt that creating a feed that didn't use fish powder

07:44

could lessen the impact on marine resources, such as anchovy,

07:48

which is often used as a main ingredient in standard fish feeds.

07:53

In place of fish powder, Akasaka came up with a plant-based mixture

07:57

using soy beans, corn, and white sesame seeds for feeding young adult red sea bream.

08:03

The soybeans and corn provide the needed protein.

08:07

And the sesame seeds are rich in antioxidants, which Akasaka says helps keep the meat fresh for longer periods of time.

08:17

After finding the right balance of ingredients, Akasaka ran into another major challenge.

08:26

The biggest difference is in how the fish respond to it.

08:29

The feed made with fish powder gives off a strong odor, so the moment you drop it in, they start devouring it.

08:35

The plant-based feed, however, doesn't have a fishy odor, so it takes them much longer to react to it and start eating.

08:44

With standard feed, adult red sea bream only need to be fed once in the morning and once in the evening.

08:51

But this method doesn't work with the plant-based feed.

08:57

Aware of the Sea Bream's habit of coming to the surface when hungry,

09:01

Akasaka found that he could get them to eat the plant-based feed

09:04

by pouring in smaller amounts during the times the fish were closer to the surface.

09:13

After making this discovery, he then introduced an AI-driven automated feeding system.

09:20

It can gauge the appetite level of the red sea bream based on their movements

09:24

and determine the ideal amount of feed as well as when to release it.

09:33

Young adult sea breams' appetites peak during the last 6 months before harvesting.

09:38

By changing to plant-based feed, aquaculturists don't have to worry about volatile pricing affecting their feed costs.

09:48

In 2021, they began selling red seabream fed with plant-based feed.

09:55

The fish have even found their way into a local sushi restaurant.

10:01

Fish given the standard fish feed can be a bit smelly.

10:04

But these sea bream don't smell at all and they have just the right amount of fat.

10:10

In this fiscal year, Akasaka expects to ship about 100,000 fish raised on plant-based feed.

10:16

The texture and flavor differences allow him to sell them for 10% to 20% more than red sea bream raised on standard feed.

10:25

I want to continue transitioning from fish-based feeds to plant-based feeds,

10:30

because it will also help to protect our natural resources.

10:35

If we can use it to feed 1 million red sea bream, I believe this change will have a positive impact on the ocean.