Operational Guidelines For On-farm Fish Processing

The following is the basic procedure for processing catfish in an on-farm facility:

  • Withhold feed from fish 2-3 days and test fish for off-flavour prior to harvest. Off-flavor fish should not be processed.
  • Transfer harvested fish into fish tank in processing room and hold overnight in well water with aeration.
  • Prior to processing, chill-stun fish by draining most of the water from fish tank and placing ice on fish.
  • Skin fish using manual pliers (an electric, floor, or tabletop skinner can be used).
  • Remove head and guts and place waste into plastic can.
  • Place processed fish into chill tank (water and ice).
  • Rinse and pack fish on ice for sale, or blast freeze in storage freezer.

The offal can be handled in several ways. These methods include burying it on-farm the same day and covering the offal with enough soil to prevent an odour or fly problem. Composting with hay or lawn litter is another method.

Preliminary findings have shown that even the bony skeleton can decompose in a short period, 6 to 8 weeks, if handled properly. The result is a high quality compost/ fertilizer. Also, the offal can be rendered by grinding and cooking for use as a feed supplement to livestock. If quantities are significant, the offal can be frozen for pick up by established rendering companies. It is recommended to check with regulatory agencies for proper handling of offal.

Economic considerations:

A summary of the University of Florida prototype processing trials and an operating budget are shown in Tables 4 and 5. The cost of processing per pound of dressed fish includes the total cost minus live fish costs divided by the total dressout weight.

The break-even price stated is an estimate of all costs associated with processing fish and operating the prototype facility. It is calculated by dividing total cost by the number of dressed pounds. It is assumed that half of the estimated $10,650 investment cost is borrowed and all fixed costs are based on 100 days of operation/ year.

In addition to the processing costs, packaging, delivery costs, and time must be considered and included when determining a profitable selling price. When processing smaller fish, the amount of labor required is greater since more time is required to remove heads and skin. Also the dress-out percentage (headed and gutted) for smaller fish is lower.

Actual costs of processing will vary depending on processing capacity, fish species, labor processing efficiency, and equipment and facility development costs. To determine the economic feasibility of this type of facility, it is necessary to have local selling prices for processed fish.

The local selling price of processed fish must be greater than fish processing costs. In addition, the added cost of marketing (advertising, labor, and delivery) must be covered for the operation to be truly profitable. In the example in Table 5, the break-even price to the on farm processor is $1.74 per pound.

Marketing costs such as telephone charges, transportation, and labor for delivery and packaging are extra. Packaging costs, e.g., a waxed cardboard box with a 50 pound capacity for ice packing, would range from $0.03 to 0.05 per pound of whole dressed fish.

Delivery costs will vary depending on distance to markets and volume of products sold. Assuming delivery of 300 pounds of processed product with a packaging cost of $0.04/pound, a 50 mile round trip @ $.30/mile, and three hours of labor @ $7/hour, the approximate marketing cost would be $48 or $0.16 per pound of processed product.

Adding this marketing cost to the break-even price per pound from Table 5 gives a total break-even price of $1.90 per pound. Retail prices of whole dressed fish will vary depending on location. The on farm processor must find niche markets that will pay enough to cover all costs plus what ever profit margin is required to justify the investment of resources - both time and money.

 

Author:

Andrew M. Lazur