Hygienic Seafood Processing Plants Rank Second to None in the World.

When officials of the US Food and Drug Administration (FDA) come calling on India's seafood processing industry in May, they should not be surprised if the pic and span plants visited outshine many of the fish factories they're familiar with back in the United States. As hygiene and sanitary conditions are scrutinized in pre-processing halls, it's more than likely the inspectors will be walking on easy-to-clean marble floors. State-of-the art equipment from Europe and the USA will dominate the stainless steel processing lines.

"We are quite confident that the American authorities will discover what their European counterparts learned a year or so ago -- that product exported from our country is of excellent quality," said Elias Sait, president of the Seafood Exporters Association of India (SEAI). "More than 80 plants and eight freezer vessels have already been approved for the export of marine products to the European Union."

If necessity is indeed the mother of invention, then the European Union's blanket ban on Indian fishery imports in 1997 was the mother of mega-modernization for the country's robust seafood processing sector. While surely the drastic EU action was unfair to the progressive processors who had long before measured up to exacting standards, it proved to be a wake-up call for many who had been either reluctant or short of cash needed to invest in upgrading.

Fortunately the Marine Products Export Development Authority (MPEDA), an arm of Indian Government's Ministry of Commerce, quickly sprang into action offering financial incentives for fishermen, auction halls and packing houses to modernize facilities and improve handling practices. And for good reason: to preserve and protect the flow of much needed foreign exchange.

Fishery products accounted for 3.32% of the country's exports during 1998-99, bringing in a cool US $1.106.91 billion. Sales to Europe generated $163.78 million, or 14.8% of the total, bouncing back from $113.18 million (8.78%) in 1997-98 [the ban was declared in August of that year].

Fortunately for the country as a whole, record sales to the Peoples' Republic of China (+77% in volume and + 126.65% in value) more than offset the decline in exports to Europe during 1997-98. As a matter of fact, an all-time high of $1.295.86 billion was earned from shipments to Southeast Asia. Exports to China increased approximately 500% from 1994-98.

Some Indian exporters insisted that the EU prohibition was the result of "European business interests" conspiring to lower the price of imported Indian seafood products. But the handwriting was on the wall more than a year before the ban went into effect, when European Union officials announced that all future shipments to Europe must conform to the HACCP (Hazard Analysis Critical Control Points) program.

With more than 95% of India's production of frozen shrimp, lobster and cephalopods sold to customers in foreign countries, every effort had to be made to block the erection of preventable non-tariff barriers -- especially regarding cases of legitimate quality control concerns.

High-Quality Raw Material

One thing almost nobody disputes is the quality of fish and seafood harvested from India's off-shore waters. They encompass a vast 2.02 million square kilometers of exclusive economic zone and 512,000 square kilometers of warmwater continental shelf, of which fully 1.2 million hectares of sea and ocean are recognized as prime catching areas.

One of this magazine's first reporters in India recognized the great potential of India when its freezing sector was being established in earnest way back in 1958. Robert S. Russel then wrote: "It is generally believed that the production of shrimp in India is equal to, or perhaps even surpasses that of the United States."

American shrimp importers and cookers, led by Irving Farber of Continental Seafoods, were soon to appreciate what India had to offer. Farber must have read the article in Quick Frozen Foods International because not long after its publication he journeyed to Cochin (now called Kochi) to set up a supply line which until this day feeds the USA market. Name the major American shrimp brands and private labels, and they are sure to be found on blocks or packs of IQF shrimp sourced from India. The list is long, but among those at the top are Singleton, Rich Sea-Pak, Contessa, Ore-Cal, Fishery Products International and Sysco.

From peeled shrimp for cocktails, salad shrimp, headless and head-on shell blocks, peeled and deveined tails, raw breaded butterfly shrimp and various IQF presentations -- more than 18,000 metric tons' worth went to the USA in 1998-99. India now ranks as the fourth largest supplier to the American market, after Mexico, Ecuador and Thailand.

So it stands to reason that shrimp freezing plants will be high on the list of factories that Mary Snyder's American FDA team will be visiting. Quick Frozen Foods International conducted an inspection tour of its own in February. About a dozen facilities were visited from commercial capital Mumbai (Bombay) to Kochi in the southwest, to Madras (Chennai) in the southeast and the Nellore district of Andhra Pradesh. Without exception, every one was in full compliance with HACCP guidelines as defined by the FDA.

Water filtration systems featuring electrodialysis purification were commonplace, as were chilled water lines used in product cleaning and processing. Air curtains have been installed at all doors to prevent entry of insects or dust.

Emphasis on personal hygiene and the battle against bacteria was universally found in the plants inspected by Quick Frozen Foods International. If cleanliness is next to Godliness, certainly the line personnel on the job are working in the presence of the lord.

A permanently-placed, graphically-enhanced "Check Yourself" poster next to the wash basin at the Integrated Rubian Exports Ltd. factory in Aroor, Kerala, reminds employees to remove jewelry and watches before entering the workplace.

But that is not all. It spells out, in both English and Hindi, "Have you dipped your legs in foot dip? Have your washed your hands and disinfected in dettol and chlorine water? Note: Jumping off the foot dip and not disinfecting hands is an offense."

On the wall of a pre-processing chamber in another plant in Kerala one finds required water chlorinating levels specified in large type on a placard: "Processing, glazing and ice, less than 2 PPM (parts per million); hand dip, 20 PPM; foot dip, 100 PPM; washing of table equipment, 50 to 200 PPM; floor washing, 100 to 200 PPM."

Choice Canning's factory unit No. III in Cochin leaves nothing to chance, posting a detailed, eight-point cleaning schedule which must be followed to the letter after each shift. The final step: "All utensils to be scrubbed clean with detergent and dipped in 50 PPM chlorine water."

CAP Seafoods

Across the picturesque waterway from Brunton Boat-yard in Kochi is the island of Vypeen, home of CAP Seafoods and two other plants owned by the 106-year-old ABAD Group. Its factory was the first in India to receive export certification under revised, more stringent rules imposed after a blanket ban on importation of Indian fishery products during August of 1998 and subsequently lifted in December of the same year.

Why did Brussels-sent inspectors tip their caps to CAP, so to speak, so quickly and allow the company to again export to the EU?

"Because from the very conception of this factory, in February of 1993, we engaged in long discussions with EU officials to make sure all standards and norms would be incorporated into our design," explained M.I. Shakeel, chief executive.

In 1995 they were up and running in a 40,000-square-foot state-of-the-art facility second to none in terms of hygiene and level of quality control. Fully enveloped with polystyrene panels imported from the United Kingdom, all air entering the premises is first filtered and conditioned.

The factory -- which specializes in cooked and peeled frozen shrimp, though it also processes cephalopods -- is actually two in one. The first section is equipped with a Frigoscandia steam cooking system capable of handling 1,000 kilos of raw materials per hour. A Stein battering and breading line is available for turning out value-added products. The breading is supplied by Newlyweds of the USA.

A Frigoscandia freezer handles the IQF jobs, while tray forming is accomplished with a Tiromat machine. Interestingly, the Tiromat unit was originally acquired for chilled (controlled atmosphere) production. "We later decided not to go into that sector," said Shakeel. "So we are using anti-fog film and packing frozen items with it instead."

The form, fill and seal machine is capable of pushing through 3,800 cases of 100-gram containers per hour. CAP utilizes the versatile equipment to run everything from 300g pouches and 500g trays to single kilo bags.

Exporting primarily to Europe and Japan, CAP's turnover topped $8 million last year. Its major brands, Pride of India and Sea Sparkle, are just as familiar to Portuguese importers of frozen squid as to shrimp buyers from Japanese supermarket chains.

Two coldstores with capacity of 400 metric tons -- one for raw products and the other for cooked products -- are on site. With 16 tons per day plant capacity, most of what is produced is shipped soon after manufacture.

Shakeel, who worked for a French computer company before answering the call to join the family-owned seafood business almost seven years ago, sees continued expansion into new markets for CAP. "As soon as it opened up we were quick to get into South Africa with seafood mix products," he said. "We're also doing business in New Zealand."

Supplying value-added products for private label accounts -- complete with bar-coding on pre-printed packaging -- is on the upswing, he reported.

Meanwhile, CAP Seafoods' sister company ABAD Exim Ltd. in April announced the unveiling of a new cryogenic freezing system at its facility in Kochi's special economic zone.

"The equipment has been supplied by Praxair," reported by Shakeel. "The installation will be the first of its kind in India. It will help us move further up the value chain as quicker freezing time will better retain product purity and texture as well as improve appearance and presentation.

Special Thanks to MPEDA

The editors of Quick Frozen Foods International magazine would like to thank the Chairman K. Jose Cyriac of the Marine Products Export Development Authority (MPEDA) for making this Indian Seafood Story Section possible. Members of the Government of India's Ministry of Commerce unit who provided invaluable special assistance in the project include Mohan Kumar, Taposh Dutta and Joy Ipe Kurian of MPEDA headquarters in Kochi; P.S. Umadevi in Chennai, Ashok Naidu in Mumbai, and Binoy Kumar in New York City.

Indian Exports   1998-99   Share %   1997-98   Share %   1996-97

Japan        Q    67,277     22.21    70,955     18.39    64,656
             V   2295.48     49.61   2326.09     49.52   1886.04
             $    549.16              641.67              527.56

USA          Q    34,472     11.38    32,914      8.53    29,792
             V    617.32     13.34    583.75     12.43    436.05
             $    147.68              161.04              121.97

EU           Q    54,261     17.91    34,875      9.04    71,192
             V    684.62      14.8    412.53      8.78    790.11
             $    163.78              113.81              221.01

Middle       Q    17,274       5.7    17,618      4.57     9,672
East         V    147.97       3.2    144.66      3.08     63.56
             $      35.4               39.91               17.78

South        Q   116,610     38.49   218,263     56.57   189,456
East Asia    V    766.06     16.56   1139.09     24.25    854.44
             $    183.27              314.23                 239

Others       Q    13,040      4.31    11,193       2.9    13,431
             V    115.42      2.49     91.36      1.94     91.16
             $     27.62                                   25.51

TOTAL        Q   302,934       100   385,818       100   378,199
             V   4626.87       100   4697.48       100   4121.36
             $   1106.91             1295.86             1152.83

Indian Exports   Share %   1995-96   Share %   1994-95   Share %

Japan        Q      17.1    51,789     17.48    53,500     17.41
             V     45.76   1576.69     45.03   1643.82     45.98
             $              500.54              523.51

USA          Q      7.88    26,008      8.78    32,102     10.45
             V     10.58    366.26     10.46    490.23     13.71
             $              116.27              156.12

EU           Q     18.82    87,212     29.44    71,224     23.17
             V     19.17    911.87     26.05    726.30     20.31
             $              289.48              231.31

Middle       Q      2.56     9,016      3.04     7,805      2.54
East         V      1.54     78.97      2.26     56.91      1.59
             $               25.07               18.12

South        Q     50.09   112,504     37.97   135,567     44.11
East Asia    V     20.73    501.03     14.31    602.32     16.85
             $              159.06              191.82

Others       Q      3.55     9,748      3.29     7,139      2.32
             V      2.22     66.29      1.89     55.69      1.56
             $               21.04               17.74

TOTAL        Q       100   296,277       100   307,337       100
             V       100   3501.11       100   3575.27       100
             $             1111.46             1138.62

Q=tons, V=billions of rupees, $=millions; Source: Marine Products Export Development Authority