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Dryad

Tuna jerky economic model

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Jan 30, 2025 version files 36.56 KB

Abstract

Inshore fisheries within Pohnpei, Federated States of Micronesia (FSM), are reliant on unsustainable fishing practices that include the targeting of fish spawning aggregations (FSAs) and undersized individuals, and the use of small-mesh nets and nighttime spearfishing. To compound the problem, raw materials (as catch) have historically been undervalued creating a ‘race to fish’ scenario in order to achieve higher profits through higher catches. Further, a paucity of vocational opportunities and the ease of entry into fisheries means a steady stream of young fishers entering the sector with little understanding of fish life history, fisheries management or traditional ecological knowledge, thus creating a perfect scenario for overfishing. In contrast, the nearshore realm has greater inherent sustainability owing to the migratory nature of most of the target species, the use of more sustainable gear and higher difficulty of successful catches. For the nearshore fishery, these combined factors mean higher costs per unit effort, thus lowering the incentive to fish nearshore. In an effort to incentivize fishers to nearshore waters and away from inshore reefs, the current project collaborated with local and international partners to develop, promote and market value-added, exportable products from existing nearshore catch—Island Bites Yellowfin Tuna Jerky. In doing so, we successfully created a blueprint design and business opportunity to improve fisher socio-economic status and marketability on a regional scale. Project results identified a sufficient volume of Yellowfin tuna (Thunnus albacares) in the Pohnpei nearshore fishery to obtain 1000-1500 lbs mo-1 of raw material for jerky production without interfering with localized sales or protein availability. The production process was streamlined to minimize labor and overhead, and allow profitability. The production process was also standardized to maintain consistency—a key factor in retail sales. Significant overhead costs from electricity remain problematic, thus future endeavors should identify means to provide renewable energy. Two flavor profiles using a combination of imported and local ingredients were developed and taste tested on Pohnpei, Guam and Hawaii, showing the products to be preferable to existing jerkies in terms of taste, texture and desirability. Marketing surveys on Pohnpei showed a reluctance among consumers to buy the product at the highest and most profitable price point making export the more desirable and profitable option and eliminating the ability to profit on a local scale. Food laboratory testing was conducted for shelf-life and nutritional analyses. Tests identified a minimum 90-d shelf life for both flavor profiles and highlighted the low-calorie, high protein content of the product. A viable export market for tuna jerky to Guam via direct sales or distribution was identified. Product pricing is competitive with regional competitors (Kaimana). Sales through online retailers (e.g., Amazon, Facebook Marketplace, etc.) were shown not to be profitable owing to lower wholesale pricing (race to the bottom pricing). Direct-to-consumer online sales is cost prohibitive owing to high local postal rates at USD$22 lb-1 that add USD$2.75 to each package. Labels and packaging were professionally designed and kraft pouch-type packaging was selected to reduce waste and plastics with regional ecologically conscious buyers in mind. A major distributor (Triple J Distributors) and a major retailer (Donki Mall) were identified in Guam for future export opportunities, however direct sales that eliminating a regional distributor improved profitability. In summary, the project developed two value-added products desirable to local and regional consumers with attractive packaging, a competitive price point and a viable consumer base. The project identified local uses and sales for ‘waste’ materials, including tuna mince and fish emulsion. The project results represent a blueprint model with regional opportunities to small business interests, including local and regional non-governmental organizations, to purchase and value-add to available nearshore catch. A user manual was developed to guide these interests in producing, selling and exporting these products to a wider market, while additional value-added product options remain within a local retail market like the former PMK Fish Market.