In the past months and years the industry increasingly started talking about chem-free shrimp, but then the topic seemed to disappear again until the recent Seafood Expo North America where it came up once again. ShrimpTails wanted to find out if there’s a trend for chem-free shrimp in the U.S., what is driving it and if companies can supply 100 percent chem-free products. While zooming in on the subject, we talked to a major Indian shrimp producer and exporter to the U.S. about whether there is a trend, and to Mazzetta Company’s Christopher Di Giovanni, a leading U.S. shrimp importer, about their Oishii brand.
So what is chem-free shrimp?
When we talk about chem-free shrimp it must be differentiated from a phosphate-free shrimp. Both terms are used in the market but are different products. Chem-free means that the product did not undergo any treatment with moisture retention agents (MRAs). Moisture retention agents are applied to hydrate the shrimp which has three key benefits. Firstly, MRAs protect the shrimp from freezer burns and retain the moisture. Secondly, they add a salty flavor and thirdly, they make the product heavier and therefore allow the company to sell them at a lower price. Salt is used as a carrier to get the MRAs in the shrimp. Salt also serves as a preservative that makes the shrimp look good and adds to the flavor. There are two kinds of MRAs on the market: Phosphate-based and phosphate-free moisture retention agents. A product can be declared as phosphate-free but use alternative MRAs such as Altesa from Budenheim.
In the ’90s, when Europe and the U.S. became major markets for Indian shrimp, phosphate treatment emerged and quickly became the standard with the growing demand for shrimp. Today, most shrimp in the market is treated with phosphates or phosphate-free moisture retention agents (POF). The standard MRA treatment solution concentration is 2 percent salt and 2 percent phosphates. The phosphates used are polyphosphates, which are available from different brands and qualities.
Treatment duration and solution temperature play a significant role in the process and differ per product. A headless shell-on (HLSO) product will be treated for up to two hours at a recommended temperature of 4 to 5 degrees Celsius, while a peeled product is treated much shorter, between 30 minutes and two hours at 4 degrees Celsius. Through treatment, the shrimp’s hydration can be increased by approximately 3 to 10 percent, depending on the product, treatment solution, concentration, and duration. For a headless shell-on (HLSO) product, the hydration can increase by up to 4 percent, while the hydration of a peeled product can increase between 6 to 10 percent or more; depending on treatment duration, concentration, temperature and stirring frequency.
While originally phosphates were only used to protect shrimp from freezer burns, preserve the moisture and add a salty flavor, today treatment is mostly related to the process of adding water and increasing the shrimp’s weight. The added water is also the main reason for complaints and drives the trend for chem-free options in the U.S.
“The trend started about five years ago and has been picking up as of last fall,” a major Indian importer said. “American chefs have been continuously complaining about the shrinking size and too much water in the pan when frying the shrimp. They are calling for better quality products that do not shrink and we think that might be related to the phosphate use.”
In the retail sector, chem-free shrimp does not seem to be trending yet. The price point deters consumers as untreated shrimp is generally more expensive.
“They are about USD 0.70 to 0.80 [EUR 0.62 to 0.71] more expensive, depending on the size, even up to USD 2.00 [EUR 1.78] per pound, depending on the size and product form,” our source explained. Regardless of the higher price, consumers still prefer the treated product because of its salty taste and moisture. Additional salt would have to be added when cooking untreated shrimp at home to get the similar salty flavor.
A complex story
Both exporters and importers can make margins off treatment, as additional water can increase the weight by 10 percent or more. Usually the amount of water and therefore weight to be added is agreed upon by both parties, but sometimes it is the importers that demand the shrimp to be soaked. In other cases, the exporter plays with the specifications.
Moreover, the shelf-life of the product can be increased on top of the moisture and freezer protection. On the consumer side, people buy a treated product which is cheaper and has the desired moisture and flavor, but they pay for more water and less shrimp too. For most of the past, consumers preferred the phosphate treated product over chem-free alternatives, the better- quality product. It is a complex story to tell; on the one hand moisture control plays an important role in retaining the moisture and protect the shrimp from drying out and from freezer burns when applied correctly.
On the other hand, MRAs are also exploited to take up water to increase the weight and sell shrimp more cheaply. Regulations such as declaring treatments and added water on the package aim to limit abuse. However, in fights for margins and market share, extensive treatment in order to offer the cheapest product possible is not uncommon. Continuously difficult is the logistical side of chem-free shrimp supply. MRA treated products have a much longer shelf life while an untreated product requires demand and supply to be mapped out precisely. In summary, the current situation is a result of three factors: firstly, there is a consumer preference-driven demand in terms of taste, moisture and price. Secondly, we see the fight for market share and margins and, lastly, the logistical challenge to have demand and supply controlled.
As consumers still seem to hesitate to embrace the natural product, we raised the question of what is necessary to sell chem-free shrimp successfully. We talked to Christopher Di Giovanni of Mazzetta Company, one of the U.S.’s biggest shrimp importers and producers about their Oishii brand. The Oishii brand is Mazzetta’s stand out brand of chem-free shrimp, in addition to Seamazz Prime™, their standard line of chemical-free shrimp. Oishii is not only free of MRAs but also provides a brand story behind the product.
Part of that story is that Oishii does not contain preservatives or antibiotics. Farmed intensively in Thailand and in partnership with CP Group, the Oishii shrimp is transported to the processing plant alive. It only takes up to four hours from the pond to freezing and no treatment is involved in the process.
“We want Oishii to be a chef ’s product that does not contain water soak,” Di Giovanni explained. The Oishii shrimp targets grocers and the food service industry and is located in the premium market segment as it is generally 20-30 percent more expensive than the phosphate treated products. Di Giovanni confirms, “Premium quality is not enough; you need to tell the story too! Either you like the Oishii story and the resulting taste or you don’t like the price for that product.”
Future trends
Today, chem-free and untreated shrimp comprise about 10 percent of the market. With the ongoing trend of eating healthy and natural food and an increasing awareness of what we consume – especially of the millennial generation – a growing demand can be expected. Moreover, the food service industry is often ahead of the retail market and can be seen as an indicator too. Shrimp prices are currently low, making higher quality and chemfree shrimp more affordable as well. However, quality on its own is not enough to sell the product. There needs to be a story and a brand behind it. A story like the one Mazzetta Company tells about their Oishii brand. Di Giovanni firmly believes that this is the future for more and more shrimp companies.
