New and Innovative Equipment for Mussel Processing

Final Report

PEI Mussel King Inc

AIMAP 2011-G01

Background / Summary

P.E.I. Mussel King (1994) Incorporated (Mussel King) is a mussel processing and selling company located in Morell, Prince Edward Island. The company is owned and operated by the Dockendorff family which has been a leader in the Canadian mussel industry for more than thirty years. Like other processors on Canada's east coast, Mussel King produces live mussels in a variety of wholesale and retail packaging options. While fresh sales account for the vast majority of Canadian mussel production, the market is competitive, limited in scope, and low- margined. The directors of Mussel King realized early the benefit of adding value to their products. For the past fifteen years, the company has specialized in a fully-cooked and frozen, heat-and-eat product. Sales growth in this category has been strong, but the company quickly fell behind in efforts to meet market demand in a production setting dominated by hands-on and labour intensive processes.

In 2010, planning began for a major retooling at Mussel King concentrating on modernizing its facility and increasing its capacity for value added production. The project had many parts, but the most consideration was given to finding innovative equipment solutions to automate key processes. The company successfully applied for funding through the Department of Fisheries and Oceans under the Sustainable Production Component of the Aquaculture Innovation and Market Access Program (AIMAP).

Specifically, the project funded under AIMAP was for the purchase of a complete line of equipment for the automated vacuum-packaging of in-shell mussels. This equipment was installed at the company's plant in Morell in December of 2011 and is the first of its kind in the Canadian mussel industry. Generically known as a horizontal-form-fill-seal (HFFS) line, such equipment is commonly used in many packaging applications. However, the special challenge of packing whole shell mussels required a fully-customized line with one-of-a-kind innovations. The installation of this equipment has been very successful, meeting and exceeding the proponent's expectations.

Final Report

The purpose of this report is to capture the results of this project especially in terms of its benefits to Mussel King and, more broadly, to the Canadian mussel industry. This report is generally very positive, because the project was very successful and excellent example of AIMAP's value to the aquaculture sector. The company's goals have been met or exceeded and the proponent believes that the project was well-suited to AIMAP's mandate of supporting sustainable production and market access.

The following report will be organized under these headings:

1. Innovative Features: A description of the new packaging equipment and the special adaptations required for this application.
   
2. Comparative Process Analysis: A “before and after” technical explanation describing the
   production of the same heat-and-eat mussel package pre- and post-project.
   
3. New Capabilities and Efficiencies: Specific operational benefits from the project; and new products that can now be offered including the market-potential of each.
   
4. Challenges: A description of the learning curve involved when moving to from manual to automatic processes.
   
5. Project Benefits: A summary of cost reductions precipitant from the project and further benefits to Mussel King. Also a consideration of advantages to the national mussel industry through a focus on modernization, diversification, and adding value.
   
6. Conclusion.

1. Innovative Features

The horizontal-form-fill-seal (HFFS) line purchased under this project consists of four main components: (a) multi-head scale and distribution system; (b) roll stock thermoformer; (c) liquid filler; and (d) in-line web printer. Each of these machines on their own is commonly used in a variety of packaging applications. For vacuum-packing mussels, however, a fully customized line was required. The thermoformer which is the central piece of the system is
one-of-a-kind. Special features were developed between Mussel King and the manufacturer to
address the specific challenges presented by the product; and the HFFS line at Mussel King has unique and innovative capabilities. For instance, special sealing chamber modifications have virtually eliminated package failures (i.e., lost vacuums) – an achievement considered impossible by many thermoformer manufacturers.

2. Comparative Process Analysis

Mussel King produces a whole-shell mussel product that is fully cooked and frozen. The process step requiring the most time and labour is vacuum-sealing the mussels into small pouches. Pre- project this was done using semi-automatic scales and pre-made bags; the scale operator held each bag in place and triggered the scale to fill it. Scale accuracy was poor to the extent that each bag was then check-weighed. Filled bags were spread out in a vacuum chamber machine and sealed. Downstream steps such as date coding and metal detecting required additional handling. Due to labour costs, the product could only be produced in units of 907g, although market preference was for smaller sizes.

The horizontal-form-fill-seal (HFFS) line funded under AIMAP is fully automatic. Instead of pre- made bags, the machine uses roll stock film and makes the pouches during production. Mussels are loaded onto the bottom film by a highly accurate combination weighing and distribution system, and then the packages are “lidded” with the upper film and vacuum sealed. Simple tool changes allow the machine to make different sizes of packages without losing capacity. An in-line printer provides for automatic date coding and labelling. The line also has the capacity to add sauces and flavours to the mussel packages. A liquid filler is integrated into the system's PLC and its operation is fully automatic.

3. New Capabilities and Efficiencies

As mentioned above, the HFFS line has allowed Mussel King to offer new products to new markets. Simple portioning into smaller pack sizes make mussels more appealing especially to retail consumers who value convenience. The 227g package is equivalent to a single serving of mussels making it very popular in restaurant kitchens. Unlike pre-made bags, the machine- formed bags can be made with an easy-open feature or in twin-packs joined with perforated seams. Mussel King is now able to offer five new varieties of flavoured mussels presented in a full-colour retail carton. These capabilities provide a host of new marketing opportunities around the world.

With the rate of failed packages (lost vacuum) now negligible, Mussel King can master product for shipment at the time of production. Pre-project this was done as a second step so packages with broken vacuums could be removed after a period of time in storage. Eliminating this second step represents a substantial saving in labour and transportation costs. Personnel, whose job is no longer required in the upstream vacuum-sealing process, are now required in final packaging. This means that far more work is accomplished, but the overall number of positions has not significantly changed. With the tedious tasks now done mechanically, the human workforce is able to concentrate on work that is more meaningful and enjoyable. Logistics are simplified considerably since frozen product leaving Mussel King is now customer- ready. It can even be sent to remote cold storage facilities to be drawn down as required for sale.

4. Challenges

Mussel King has had the privilege of working with excellent equipment suppliers and manufacturers. However, final equipment selections were only made after several months of research. While there were many possible suppliers for the equipment required, very few had experience working with shellfish and fewer still in applications involving whole-shell mussels. Because the HFFS line involved different components from different suppliers, the coordination of planning, building, and testing was not easy and required more time than expected.

Changes in the packaging method for the heat-and-eat line of products, also required a change in packaging. Determining the correct film structure to work with the equipment was critical. Since package dimensions were altered, all pre-printed film designs required reworking both for the Mussel King brand and a number of private labels.

For a company like Mussel King, the move to automation and mechanization is a large step forward. Regarding the HFFS line, factory tests were held in September of 2011, but it was not until recently (March, 2012) that the equipment could be considered capable of full production. Although the installation was complete in December, an additional three months were required to fully train personnel and optimize the system. This period of continual trouble-shooting required a measure of determination and a high level of cooperation from the equipment suppliers. The results of the project are rewarding, but contemplating similar work in the future will require more realistic timelines.

5. Project Benefits

The greatest cost savings resulting from this project is in the direct labour column. Based on the same process steps pre- and post-project, Mussel King expects to realize a 75 % saving. Based on current sales this represents an annual cost benefit exceeding $700,000. Film costs are higher, but these are offset with savings in labels. Mastering the mussel pouches at the time of production represents a yearly saving of $80,000 and less waste in product and packaging material.

Furthermore, new product offerings are expected to generate an additional $3 million in sales by the end of 2013. With additional value added to these products such as portioning and flavouring, margins are anticipated to be at least 10 % higher over other frozen products.

In addition, the proponents believe that this is an important step forward for the Canadian mussel industry. Even though Canadian mussel production represents a very small part of the global industry, fresh Canadian mussels are viewed as a commodity in Upper Canadian and Eastern Seaboard (US) markets. This has kept the selling price for mussels low and threatened the viability of certain Canadian producers. Over the next five years, Mussel King plans to shift the majority of its production into value-added products, and is specifically targeting foreign markets where Canadian mussels do not have a commodity status. Even if the situation in the rest of the industry remains static, the change in focus by Mussel King will mean that less product will be available for the domestic fresh market – a good climate for increasing price.

6. Conclusion

Mussel King is grateful for the support of the Federal Government through programs like AIMAP. No one can argue that aquaculture will play a major role in world food production going forward. However, at present, there are challenges to overcome and the commoditization of Canadian mussels is a significant obstacle for producers. Developing products and accessing markets that will showcase the unique quality of our Canadian mussels are key to the future of the industry.

The purchase of innovative and automated equipment by Mussel King is a step in the right direction. Pressure to lower costs, a smaller and more sophisticated labour force, and the need for new production capabilities have all driven this decision. Most importantly, an emphasis on adding value to our products is long overdue especially in primary Canadian industries such as agriculture, fishing, and aquaculture. Companies which should be thriving are finding themselves in jeopardy when they export the potential of their product along with the product itself. This builds wealth for others, but does little for the local communities and people who work hard to produce excellent products like Canadian blue mussels.

The proponent is committed to following a strategy of developing new products for new consumers, and marketing these products around the world. It is hoped that our limited supply of Canadian mussels will someday be seen in a wide variety of high quality, speciality products, and not viewed as a commodity.