Due to Alaska's geographical attributes, oyster farmers are exploring different setups for processing and getting their oysters to market. They are investing significant efforts and funds to achieve automated processing capacity and efficient and safe transportation to markets and consumers.
Transportation infrastructure improvements have provided new shipping options, but costs remain a significant concern. Additionally, regulatory compliance is a complex and necessary aspect of the oyster industry, with strict federal laws.
Farmers are navigating these regulations, ensuring proper facilities and equipment, and meeting sanitation guidelines. Despite these obstacles, opportunities for growth and success exist through collaboration with industry organizations and a commitment to meeting high product quality and safety standards.
Small-scale farms process their oysters manually or semi-automatically, usually on their on-site working platforms, and package them on ice, freshly ready to be transported and delivered.
Manual sorting and prepping at Tommaso Shellfish
The processing and packing room
Large-scale farms are using state-of-the-art sorting automated equipment. Optical automated sorting machines for up to 6 different sizes semantically can go through 2K dozen daily with only two operators.
Oyster SED grader not yet assembled at Seagrove.
SED Oyster grader assembled at Alaska Shellfish
As part of Seagrove Oyster's strategy, substantial investments are being made into processing facilities, cold storage capacity, packaging, gear and automation that are currently at over capacity.
The idea is to be technically and technologically ready and as efficient as possible for once the farm site is scaled and market demands increase.
Oysters' quality and shelf life are influenced by various factors, such as cultivation methods and environmental conditions during their growth period. Oysters grown in subtidal zones or on longlines may have weaker adductor muscles due to less shell movement, leading to shorter shelf lives compared to those grown in intertidal areas or in flip systems, where muscles are stronger from regular shell closure during tides. This affects oysters' ability to retain moisture within their shells, potentially lasting over 20 days compared to approximately 7-10 days for strictly subtidal-grown oysters.
The cooperative business model
The Alaskan oyster industry is poised for significant growth as new operations prepare to bring market-sized oysters to consumers. While the primary market for Alaskan oysters has traditionally been within the state, industry stakeholders recognize the need to expand sales to the lower 48 and beyond. Processing capacity, effective product marketing, and sales strategies are deemed essential, focusing on providing a range of desirable service offerings.
As the industry progresses, oyster producers are exploring the benefits of adopting cooperative business models as a strategic tool to enhance their processing, marketing, and sales endeavors, drawing insights from successful cooperative structures in related food production sectors.
Four farms in the Naukati area in Prince William Sound have formed a cooperative to facilitate a joint processing facility. By combining resources and funding opportunities by the SEC, the cooperative addresses the critical challenges for any new farm to have an efficient and near-farm processing capacity and comply with strict regulations for producing a healthy, safe product.
Meeting Jimmy and Kate from Tommaso Shellfish at the destined site for the joint processing facility
Laying out the vision of the 4 farms and the support provided by the SEC
The site from above with the dock in view
To relieve the individual farmer bottleneck of processing and cold storage costs, the processing site will have an offloading dock and pier, a walk-in cold storage container, handling equipment and machinery, and potentially a storefront for B2C sales fresh on ice.