No by E. Sola. Teknisk/Okonomisk analyse av terfiskbransjen. Rapp. Fiskeridir. Kjemisk - Tekniske Forskningsinstitutt: 23p

Transcription

1 ISSN CANADIAN TRANSLATION OF FISHERIES AND AQUATIC SCIENCES No Technical/economic analysis of the dried fish (Stockfish) industry by E. Sola Original Tide: Teknisk/Okonomisk analyse av terfiskbransjen From: Rapp. Fiskeridir. Kjemisk - Tekniske Forskningsinstitutt: 23p Translated by the Translation Bureau (144) Multilingual Services Division Department of the Secretary of State of Canada Department of Fisheries and Oceans Scotia-Fundy Regional Library Halifax, N.S., pages typescript

2 DEPARTMENT OF THE SECRETARY OF STATE TRANSLATION BUREAU SECRÉTARIAT D'ÉTAT BUREAU DES TRADUCTIONS MULTILIMGUAL SERVICES DIVISION CANADA DIVISION DES SERVICES MULTILINGUES TRANSLATED FROM - TRADUCTION DE Norwegian AUTHOR - AUTEUR Einar Sola INTO - EN English TITLE IN ENGLISH - TITRE ANGLAIS Technical/Economic Analysis of the Dried Fish (Stockfish) Industry TITLE IN FOREIGN LANGUAGE (TRANSLITERATE FOREIGN CHARACTERS) TITRE EN LANGUE ÉTRANGÉRE (TRANSCRIRE EN CARACTÈRES ROMAINS) Teknisk/Okonomisk analyse av torrfiskbransjen REFERENCE IN FOREIGN LANGUAGE (NAME OF BOOK OR PUBLICATION) IN FULL. TRANSLITERATE.FOREIGN CHARACTERS. RÉFÉRENCE EN LANGUE ÉTRANGÉRE (NOM DU LIVRE OU PUBLICATION), AU COMPLET, TRANSCRIRE EN CARACTÈRES ROMAINS. Rapport, Fiskeridirektoratets Kjemisk - Tekniske Forskningsinstitutt REFERENCE IN ENGLISH - RÉFÉRENCE EN ANGLAIS Report, Directorate of Fisheries Chemical/Technical Research Institute PUBLISHER- ÉDITEUR REQUESTING DEPARTMENT MINISTÈRE CLIENT BRANCH OR DIVISION DIRECTION OU DIVISION PERSON REQUESTING DEMANDÉ PAR 15F0 S'/PC 4:77,ed DATE OF PUBLICATION DATE DE PUBLICATION Directorate of Fisheries 23 PLACE OF PUBLICATION LIEU DE PUBLICATION Bergen, Norway YEAR ANNÉE 1970 VOLUME ISSUE NO. NUMÉRO TRANSLATION BUREAU NO. NOTRE DOSSIER NCI TRANSLATOR (INITIALS) TRADUCTEUR (INITIALES) PAGE NUMBERS IN ORIGINAL NUMÉROS DES PAGES DANS L'ORIGINAL NUMBER OF TYPED PAGES NOMBRE DE PAGES DACTYLOGRAPHIÉES 32 YOUR NUMBER VOTRE DOSSIER NCI DATE OF REQUEST DATE DE LA DEMANDE 0 E ÇI SOS (REV. 2/68)

3 SEC 5-25T (Rev. 6/78) 4, Secretary Secrétariat of State d'état MULTILINGUAL SERVICES DIVISION DIVISION DES SERVICES MULTILINGUES TRANSLATION BUREAU BUREAU DES TRADUCTIONS Client's No.-111 du client Department Ministère Division/Branch Division/Direction City Ville Dr() sfee Bureau No. fslo du bureau Language Langue Translator (Initials) Traducteur (Initia les) R Ardrto -e,q f/ i ' rt., // 1-t OCT DIRECTORATE OF FISHERIES Chemical/Technical Research Institute Technical/Economic Analysis of the Stockfish Industry (Teknisk/Okonomisk analyse av terfiskbransjen) Carried out chiefly by Hartmark & Co. - IRAS on contract to the Directorate of Fisheries Chemical - Technical Research Institute and financed by the Fishing Industry Research Fund. Report by Einar Sola Report No. 114/70 (R. nr. 114/70) A. h. 7 '131'.7717:77 ' BERGEN

4 CONTENTS In Original In Translation Introduction pagel 3 I STUDIES AT THE PROCESSING LEVEL Introduction Background and Raw Material Supply The Processing Industry Production Costs Conclusion 5 8 II EVALUATION OF RATIONALIZATION POSSIBILITIES Cost Evaluation Labor Evaluation Quality Evaluation Yield Evaluation Scope for Savings III PRACTICAL TESTING OF RATIONALIZATION INITIATIVES Methods and Equipment Results Conclusion IV OTHER POSSIBILITIES FOR IMPROVEMENTS AND RATIONALIZATION V STUDIES AT THE EXPORTER LEVEL A. Organization B. Technical Rationalization of the Production

5 3. Technical/Economic Analysis of the Stockfish Industry Introduction. Stockfish processing is chiefly carried out in Northern Norway through natural drying on racks or frames ("hjeller"). The equipment is simple, but handling is labor intensive. The sanie applies to grading and export packaging. These facts have long been known and it is desirable to analyze the whole stockfish industry in order to clarify possibilities for rationalization. For this purpose a small sum of money was allocated from the Fishing Industry Research Fund (Fiskerinaeringens Forsaksfond) in 1964 to carry out a preliminary study in order to have a basis for planning a more thorough study of the whole industry. The preliminary study was carried out towards the end of 1964, and on the basis of this, it was decided to first carry out a thorough technical/economic analysis at the producer level. The necessary funds were granted for this purpose in the spring of 1966 from the Fishing Industry Research Fund. The studies were carried out in 1966 and the final report was available in the spring of At that time, there was also an application from a processing plant to the Fishing Industry Research Fund for support for carrying out rationalization.measures in connection with the stockfish production at the plant. The firm is one of the largest stockfish producers, and since conditions were otherwise favorable, the result was a project for practical testing of certain rationalization proposals. With support from the Fishing Industry Research Fund, this project was initiated in 1968, and the first part was completed in 1969.

6 a 4. In the spring of 1968, the money necessary was granted by the Fund for carrying out a study of the stockfish export industry. This study was completed in the summer of 1969 and an extensive report is available. I. STUDIES AT THE PROCESSING LEVEL (Technical/economic analysis) Since the Directorate of Fisheries Chemical/Technical Research Institute does not have qualified people for such studies, it was decided to engage a rationalization firm (IRAS) to carry out the studies. The final report was available towards the end of May 1967, and the summary and conclusions from this at` briefly as follows: 1. Introduction. The stockfish industry is sensitive to fluctuations in fish catches and the climate. developments in, and the state of, the rest of the processing industry will at the same time strongly affect the profitability of the stockfish sector. It therefore became necessary to touch upon conditions also in other sectors of the processing industry in order to obtain as thorough an analysis as possible. One of the main purposes of the analysis was to get a measure of the profitability of the industry. This proved to be rather difficult due to problems in obtaining relevant data. Some of the data obtained came from 12 plants that were visited. In addition, data from the Norwegian Raw Fish Organization (Norges Râfisklag) and from official statistics were used. There are also a small number of stockfish processors located

7 5. outside the district covered by the Raw Fish Organization. However, the production of these comprised such a small part of the total, that it was felt that it was not necessary to cover them separately. 2. Background and Raw Material Supply Raw material supply and stockfish processing in the Norwegian Raw Fish Organization district show the following developments: Total landings ,335 tonnes ,550 " ,633 " ,318 " ,785 " Quantity Hung for drying 154,986 tonnes 115, ,787 91,947 93,374 It It It can be seen that total landings varied around 320,000 tonnes, 'smaller> while an increasingly - percentage were being hunqj for stockfish. As compared with freezing, the percentage distribution in the period has been as follows: Hung Frozen Total 47% 38% 42% 30% ' 26% 24% 33% 37% 39% 48% 71% 71% 79% 69% 74% It can been seen that freezing consumes an increasing amount of the raw material while stockfish use is decreasing, and the total percentage is quite constant. The ratio varies along the coast,and the largest change can naturally be found where there has been the greatest expansion in the freezing industry. When there is a further expansion in the freezing industry without a corresponding increase in the quail:li-lies of fish

8 6. landed, it must be assumed that stockfish production will be p. 3 further reduced. The buildup of the freezing industry is obviously to a certain extent ocurring at the expense of the stockfish production. Also, when outports are abandoned,. some of the basis for the stockfish industry also disappears. The chief fish species used for stockfish are cod and pollock, with 87% of the quantity hung in 1961 and 81% in The supply of raw material varies with the time of the year, but appears to have the following distribution: Cod Pollock Finnmark April - June August - October Troms March - June September - December Vesteraalen February - April Lofoten February - April September - January Hanging of fish is carried out chiefly in these periods, and the inshore fisheries are the main source of raw material. 3. The Processing Industry In 1965 the total quantity of fish hung was 93,374 tonnes by the following types of processors: Registered processors 82,374 tonnes 88% Fishermen/processors 11,000 tonnes 12% 93,374 tonnes 100% There are no data available to make it possible to include fishermen/processors in the analysis. In 1965, there were 1122 registered processors in the district

9 7. covered by the Raw Fish Organization, and of these 777 or 69.3% were active. The average production of the active registered processors was ca. 106 tonnes raw fish in 1965 with extremes from under 1 to over 1400 tonnes. The studies show that 70% of the active processors produce 20% of the total quantity, and that ca. 83% of the processors have a yearly production of less that 200 tonnes. This shows that most of the processors produce on a very modest scale with labor requirements of less that 1 person-year per installation. Of the 134 processors that hang more than 200 tonnes of raw fish per year, there are only 24 that hang more than 500 tonnes per year. Therefore, there are relatively few processors that have a labor force of any size. However, many of the processors operate integrated processing plants and have therefore in total a larger labor force. The industry represents in total 1.2 to 1.4 million hours or 550 to 650 person years. 4. Production The production methods are essentially the same for most of the processors, but production units can be divided into the following main groups: a) Family units that produce in fishing season only b) Small, independent processors that carry out various types of production and hire workers in season. c) Larger processors with multiproduct production (for instance, cooperatives.) d) Freezing plants that hang fish in order to handle

10 8. q4.= production peaks and fish that are of too poor quality to freeze. Generally, it can be said that stockfish production places large demands on the flexibility of the labor force due to seasonal variations and that the efficiency will vary considerably from one production unit to another. Stockfish processing can *lailnly be characterized as follows: a) Fluctuating demand for labor b) Manual handling of the products c) Processing methods and work organization are not very rational seen from an economic point of view. 5. Costs The costs will fluctuate primarily with fish species and sizes, and processing costs will fluctuate between the individual processors. The following costs have a dominating influence on the cost price: a) Raw material costs 60 to 70% b) Processing costs 15 to 25% The direct labor costs comprise the largest part of the processing costs with 9 to 15% of the cost price. Subsidies comprise 9 to 14% of the cost price based on minimum prices paid to fishermen. 6. Conclusion The stockfish industry is based on processing of raw materials which at the same time can be used for other products. Choice of processing method is determined by a number of factors whose importance varies from processor to processor. The most important are:

11 9, 1. Profitability 2. Traditional processing patterns 3. Access to labor 4. Subsidies 5. Availability of raw material 6. Investments in costly processing equipment which makes it necessary to have continuous production in order to have a profitable operation. 7. Access to technical expertise and a technical environment. 8. Marketing possibilities. The processing structure of the future will be a result of how the various factors are affected and develop. At any time, the processors will be faced with the choice of correct utilization of the raw material based on existing profitability criteria. Stockfish production seen in isolation is characterized by the following factors: 1. Low processing costs 2. Low requirements for processing equipment and technical expertise. 3. Extremely seasonal raw material availability and production. 4. Quality dependency on climatic conditions. This means that several of the factors that affect the profitability are not controllable due to certain fixed conditions. These factors together with the extreme variations in labor requirements mean that stockfish production alone cannot support plants with

12 10. twelve months' operation. This under the condition that natural drying is being used. Most large processors carry out mimed processing where the stockfish share is variable. Processors are faced with the problem of finding the optimal use for raw material supplies that are not vary. _ controllable. With the large variations in raw material thatare known to occur, stockfish processing will in the future be a valuable processing alternative due to the low investment costs ofprocessing equipment and the large flexibility in processing capacity. Parts of the operations are common for the various processing methods such as unloading, weighing, gutting, washing, sorting, etc. It is therefore natural to imagine a processing plant as an integrated unit where the goal is optimal utilization of processing resources and the raw material. It should be possible to carry out an analysis aimed at illuminating the utilization of processing resources and raw material that can be achieved with different structure (size, processing method) of processing plants. A study like that can be assumed to result in clarification of the problems in connection with utilization of the raw material and labor and thereby contribute to cost reductions. Possibilities for rationalization can be summarized in the following points: A. Processing structure and marketing of stockfish The impression obtained is that profitability on the processor side is strictly dependent on the business sense and skill of the manager.

13 11. -ékp Most processors do not know the markets anebbtential demand and have therefore few or no possibilities to direct their production according to real marketing conditions. In order to get a picture of price developments and profitability of both domestic and export sales, it was attempted to get data frcm exporters. Inquiries to some exporters resulted in a negative response. It must be assumed that a coordination of sales and marketing, together with a closer contact with the consumer market,will to a large extent serve the interests of the processors. it is difficult to present concrete proposals for a structural rationalization of the industry l since this will strongly affect regional development policies. Some proposals for possible changes in the structure of the processing industry will be given, and can be briefly combined into the following two alternatives. 1. Existing structure is retained with the implementation of efficiency improvements in organization and marketing. The basis can be the large number of processors, but efforts should be made to organize raw material supply, processing and marketing in larger, cooperative units. By having these larger-units, some of the advantages of larger plants can be achieved. However, these conditions must also be evaluated on the basis of the possibilities for the use of integrated processing plants and existing regional development policies. 2. An attempt is made to change the structure of the industry

14 12. by going to industrial production of stockfish in larger units. Precondition for such industrialization is that a more extensive control of raw material supply, processing conditions and marketing is achieved. B. Methods and equipment Methods and equipment that contribute to rationalization appear to be. 1. Machine to tie two and two fish together ("sperre"). 2. New types of drying racks based on current construction of racks for tied fish, but with a shape that will reduce handling time. 3. New types of drying racks for hanging fish without tying (sperring). The economic basis will be there for large processors,,if the problem with a reasonable and technically good hanging method can be solved. C. The quality factor. Quality and yield have a deciding influence on profitability, and there has therefore been a large amount of work carried out in researching chemical methods that can reduce the danger of quality deterioration during drying. A variation in yield of 1 % corresponds approximately to the processing costs. The importance of further studies of the influence of various factors on quality must therefore be emphasized. The Fisheries Laboratory has developed a treatment method (spray or dip) for the prevention of damage from flies. In order to use the method, processors must have permission from the Director General. In the period 1965/67, a total of 181 such permits were given. On the

15 13. basis of 46 reports from processors involving a total of 2420 tonnes of treated fish, it was calculated that the dipping treatment costs less that 2 ôre per kilo raw fish, while the spray method costs less that 1 ^re per kilo raw fish. Artificial drying can also be considered to be a method for gaining p. 8 better control of the process) and at the same time, for processing independent of climatic influences.,,initiated to find., A research project has to bē Y out if it is possible to achieve the same or better results through artificial drying. D. Controlling and organizing production. It appears from the cost structure that costs vary with fish size and species. For an economically proper operation, it will be of great importance that the cost price of the fish is taken into consideration when planning the production. Through the choice of drying racks, use of quality'- protecting methods, supervision in the hanging period, storage times, etc., the value of the fish must be used as a criteria in deciding priorities for the production. The danger of lost time during production,due to variable raw material supplies and variable requirements for labor)should be pointed out. To what extent these variables can be brought under control is completely dependent on the size of the individual plant, other processing possibilities, supply of labor and managerial ability. As mentioned before, it is of great importance that the whole production of a processing plant be consideredan entity in which stockfish production forms one part of the total.

16 14. E. Work Studies Work studies for the purpose of mapping out and eliminating manual sources of loss will largely be of interest for the largest processo-fe. This is because the processing plants are very different both with regard to size, equipment, and location. In addition to this, a high (83%) percentage of the processors have very limited possibilities for investment. However, it is. possible that a technical production rationalization at a larger processing plant can lead to results and methods that can also be taken into use by smaller processing plants. II. EVALUATION OF RATIONALIZATION POSSIBILITIES. On the basis of the primary studies mentioned above and additional studies that have later been carried out at a large plant, a costquality and yield evaluation was carried out for existing processing methods. 1. Cost evaluation On the basis of abstracts of accounts and additional information obtained, the cost distribution for stockfish J7 anted production as calculated for ttle - plantj is given in Table 1. Stockfish production comprised in 1967 about 26% of the total sales of this plant. (In addition to stockfish, the production includes frozen fillets, fresh and salted fish guano, etc.) The cost entries in the account have been included using this 26% share / unless a subjective evaluation indicated that it should be raised or lowered. The numbers are therefore far from exact, since the costs in the accounts have not been

17 15. entered against the individual products where they occurred. However, it is felt that the values give an idea of the situation. p. 9 The raw material costs that are entered jointly for salt fish and stockfish are pulled out in relation to the ratio between dried and salted quantities. For the costs of 100 kg stockfish, the total costs have been divided by fish quantity produced based on purchases made in the period. To what extent this agrees with fish quantities actually taken in is not known. The quantities shipped out are considerably lower so that the baling and shipping costs for about 35% of the quantity are not included. In calculating the quantity produced, a yield of based on the quantity of raw fish was used. The actual yield was claimed to be: Fish Species Percent yield Part of total production Cod Pollock Cusk Haddock % 33% 2.5% 1.5% It is difficult to determine the accuracy with which the yield was measured in this case. Since there are no accurate measurements of warehouse stocks at the end of the year, it is difficult to find a more exact expression for the processed quantity.

18 TABLE Approximate cost summary for stockfish production Raw material quantity: 1738 tonnes Stockfish quantity 400 tonnes(= ) ' Cost Type " Total kr/100 kg (1000 kr.) Stockfish Direct Variable costs: Raw material fish 1, kg ea. kr , Fish-tying string: 0.5 g/piece x 0.75 x 10 6 fish x 6 kr/kg Wire for tying bundles: 5000 rolls x 7 m x 24 g/m x 1.50 kr/kg Direct wages, stockfish production: 35,400 hours ea. kr Wages for gutting fish Wages for tying fish together: 0.75 x 10 6 fish ea. kr Social costs on direct wages Sum direct variable costs 1, Direct Fixed costs Watchman on drying site: 4,480 hours ea. kr social costs Sum direct costs 1, Indirect variable costs: Energy use Equipment Transportation, freight Interest, operations Office xpenses Total indirect variable costs Indirect fixed costs: Salaries and wages incl. social costs Maintenance of equipment, properties Maintenance of tools and movable equip Insurance Property and water fee (tax) Interest ) property Various expenses Sum indirect fixed costs Sum total costs

19 a Evaluation of labor With respect to distribution of labor and utilization of time, an approximate distribution was arrived at for the stockfish production and is shown in table 2. p. 11 'TABLE 2. Processing of Stockfish, Use of time, summary. Work Function Man lours in Estimated Ave mlnu es per 100kg snare time or the shai.e or SLOC ilsn rocessin2 total process uantity eocess ror tne Normal Special Per 100.n mrocess _ process 2. stocksh lime in lime in lme in 7 min. I. min. % in. Receiving fish Cleaning of fish _ - Transporting fish from receiving area to tying area Tying together / 1.eleclel f8pgliîe-ng on Raw cutof cod incl.# over-tying Raw cutof pollock incl. over-tying Transport to the drying yming vu t ilat racks gounim e on pyramid racks incl Watchman Loading of fish at flat racks Loading of fish at pyramid racks Transport to warehouse Sorting (grading) Carry to stacking area Cleaning and stacking fish Sorting and bundling fish Shipping of loose fish pl.u t y9 Qf bpndled fish LO snip tl n n n over shipping agent Total time Raw cut fish is transported to drying racks with tractor trailers. lack of observation, this is not included in the diagram. Due to * "Raw Cut" = "Root Cut". Splitting

20 18. According to table 1 and other calculations that have been carried out, the labor requirements for the stockfish p. 12 production are approximately (d!istributed) as shown in table 3. TABLE 3 Average Time used per 100 kg. stockfish Labor Operation Hours W ^.. prep. côorr dinggtôo^â blénr Gutting of fish Making tying strings ^ôsional time, 40.8% of working ûr âoccaordingetuosinfôormatioonkfrôm ^joantssing 45,000 hours: 4000 x 100 kg. fish 11, (The value for additional time was arrived at by taking the total time used and subtracting the sum of registered operating times.) It should be made clear that there are possibilities for a certain margin of error in the numbers above. However, they still give a fairly correct picture of the distribution of labor costs. It can be seen that the item "additional time" is about 85% of net productive time. In this case no measurements were made of the distribution of lost time, since it has not to any considerable extent been considered as dependent of the working methods used. About 40% of the additional time has been used for unforeseen work in the stockfish warehouse) such as moving^ various other operations, inspection and control. The rest.

21 19. of the additional time then comprises 51% of productive time. 3. Quality Evaluation Stockfish is graded in a number of qualities according to the condition it is in at the final grading stage. The quality can be reduced for many reasons from catch to storage of finished stockfish. This leads to direct and considerable reduction of the economic yield. At the processor, the fish is usually graded in three qualities: a) "Samfengt" = Mixed (mixture of the better qualities) h) Afrika (poorer quality) c) "Vrakfisk" = rejects (for dogfood or other animal feed) There are no exact prices available for any of these qualities. It is therefore difficult through this way to find an exact expression for possible increased profits through quality improvements. Of the total stockfish quantityl'in 1967 from the above p. 13 mentioned plant, "mixed" comprised 31% and Africa fish 69%, while an unknown quantity was rejected. "Mixed" achieved a 2.00 kr/kg better price than the Africa fish. Possible increased profits through quality improvements for the whole quantity produced (400 tonnes) could thu5 have been maximum kr. 552, Yield Evaluation The yield, i.e.: Quantity of fish sold Purchased quantitiesjof fish

22 p. 20. appears to be as indicated under #1. Ongoing control of the yield is not being carried out, and also no record is kept of the influence of various factors. Reduction of yield(from the theoretically achievable by drying without loss of solids) can have several reasons, such as: a) Backbone removal in râskjaer (raw cut) (ca of raw fish weight) b) Birds stealing fish c) Fish blowing off racks d) Leaching of solids in rainy periods. e) Theft from drying racks f) Excessive drying beyomd what is necessary or desirable during storage g) Loss of solids through crumbling during storage. 5. Scope for Savings With a yearly production as mentioned (400 tonnes stockfish) at the above-mentioned plant, the possibilities for saving will be in the following areas: a) Quality improvement (full upgrading of 697. Africa fish) max. ca. 552,000 kr/year b) Reduction of non-productive time (36 7. of total labor costs) max. ca. 155,000 " t t c) Labor savings through rationalization of process max. ca. 276,000 " It d) Eliminating watchman in drying area max. ca. 43,000 " II e) Reduction of indirect variable costs max. ca. 63,000 " f) Reduction of indirect fixed costs max. ca. 205,000 ti " _, Total max. 1,294,000 kr/year tt

23 21. g) Increase in yield, ca. 85,000 kr/year per % increase in yield. For all these points and especially e) and f), the maximum values will be difficult to reach, but even if, total, there cannot be achieved more than 50 7., this still means an increase in profitability of ca. 650,000 kr/year ca kr/kg stockfish, which is considerable. PRACTICAL TESTING OF RATIONALIZATION INITIATIVES At the above mentioned plant, practical experiments in tying together ("sperring") and hanging fish were carried out in These trials indicate that there can be certain possibilities for rationalization. 1. Methods and Equipment The experiments were carried out as indicated in fig. 1 on two lengthwise beams with the fish hanging from poles running crosswise to these. The ground between the beams was levelled so that a truck could drive through the racks. The distance between the beams was ca. 4 meters and the height above ground meters which made it easy to hang the fish from the truck loading platform. No fish were hung on the protruding ends of the poles as is usually done. Fig. 1 further indicates the use of truck and containers during the hanging. The containers were equipped with runners and were placed in sets of 4 on the truck loading platform. In order to ease hanging and handling, the containers were narrow and placed high on the platform on a frame with gliderunners. Capacity:600 kg. fish per container; 2400 kg. per

24 22. truckload. During loading,the fish was tipped from washing troughs to transport containers. The containers were slid on the truck from the back with a fork-truck. The containers were made of aluminum frames with wood grating, were relatively light in weight, and could with reasonable ease be returned manually for re-loading. The wooden slats in the containers were loose, and the side slats were knocked down after emptying in order to prevent rubbing against the hung fish. In order to ease the hanging operation, the sides of the truck platform were extended horizontally to form a larger working platform for the crew. Iron supports made this arrangement possible. The hanging clips were shaped as indicated on fig. 2 and consisted of two riveted scissor (clamp) halves made from 1 mm thick galvanized plate. The clamp had sharp teeth inside to better grip the tail of the fish and a ridge to give it greater strength. The clamp closed when the weight of the fish acted on the hanging hook on top. The clamps were used in pairs on each end of a bent wire which was hung over a pole in the usual way. Various wire types were tried. Alternative A was displaced to a high degree along the pole during strong winds. Alternatives A, B, and D had a higher drop-off frequency during hanging than the other types. Alternative C was very complicated to use when hanging frow below. Alternative E required coordinated hanging of two fish; something that was difficult to carry out alone.

25 23. Two methods for hanging were tried: a) Ranging of fish with clamps and wires already fastened. b) Loose fish in containers and clamps fastened during hanging. 2. Results The results from these trials are shown in table 4. TABLE 4 Comparison of Methods Operation Man hours in min. per 100 kg. stockfish Conventional Tested systems Tested systems Method with clamps with clamps & wires attached Fish reception 11.3 Transport to tying area 7.3 Tying together (clamps & wire) 57.6 Washing and loading 20.4 Transport to racks 4.4 Ranging 42.2 Transport/waiting during hanging Loading of dried fish at racks 24.1 Waiting for truck during hanging - Watchman Operations later Total productive time + Normal work-dependent additional time of Total time Conclusion It can be seen from the table that there is practically p.1( no difference between the two new hanging methods. Both methods resulted in a certain reduction in the total time used relative to the conventional methods, but not nearly sufficient to defend the large investments, eàpecially in clamps.

26 r 24: The method for hanging tied fish proved to be of value. This also requires investments, especially in building new racks, but as long as there are no other alternatives.)it is recommended that this principle is used to the extent that new racks will have to be built. IV. OTHER POSSIBILITIES FOR IMPROVEMENTS AND RATIONALIZATION L. Better cleaning of the fish during gutting, so that difficult and labor-intensive cleaning of the fish after it is dry can be avoided. 2. Development work should be started to come up with an economical mechanical tying method for the fish. It is hoped that work on this can be started during It should be studied to what extent taking the fish indoors for afterdrying, perhaps with the help of a container system, will have a favorable effect on quality and use of time. A project like that can only be carried out with support from the Fishing Industry Research Fund. 4. A closer look should also be taken on rationalization possibilities for receiving operations for fish. Again support must be given by the Fund. 5. Mechanical drying of fish should also be studied closer, especially possibilities for drying thin sheets of split fillets with respect to production, quality, and salt. It is hoped that such a project can also be started during V. STUDIES AT THE EXPORTER LEVEL Studies at the export level were carried out in the

27 25. fall of 1968, and a final report was available in the summer of The study included 10 export businesses between Bergen and Finnmark. Most of them were very cooperative and gave unlimited permission to observe their storage areas. However, when it came to giv accounting information and economic data, many of the plants were very close-fisted, which has led to uncertainty in some of the data. The activitliwsin the storage areas wee quite uneven the 0/gas no duringlvistts,so that the portunity to observe more than a few operations at each place. Hpwever, since so many plants were visited, a representative impression of the work was still obtained. Conclusion The study shows that there are good possibilities for rationalization in the industry. Production improve- ments can be achieved partly by technical changes and partly by changing the organizational structure of the industry. When measures are taken, they should work towards a fixed,a goal afterchoice of solutionshas been accepted in principle. A. Organization Most of the processing is carried out in Northern Norway and most of the export packaging in Bergen. This is cumbersome and not very rational and leads to limited communication and extra costs. In addition, most of the warehouses in Bergen are old-fashioned.

28 26i ln principle ) there seem to be two possibilities for reorganization; either export packaging at district centrals or at procesaors. Export packaging at district centrals (central storage) should be possible to organize ) with processors as partners ) the way it is organized in Troms and Finnmark today. Marketing can be carried out individually or through a central organization. Export packaging at the processors will mean a greater reorganization. This alternative will place greater demands on efforts and new thinking in many areas. It still appears to be the alternative that can offer the most rational solution on the longer term. This would require: 1. Planned expansion of the larger and more effective plants in order to achieve rational processing and packaging. 2. A certain reorganization of the less viable processing plants and deliveries from remaining small to large processors. 3. Establishment of a central sales organization which would carry out the total marketing of Norwegian stockfiàh on existing and potential markets. Processors should have an equity in the organization. Present exporters and the National Stockfish Exporters Association should have a central place in such an organization since their know-how and experience can be used here very effectively. The economic importance such reorganization could have is shown in Table 5.

29 d 27. TABLE 5 Comparative Costs by export packing in Northern Norway vs. Bergen Cost Cost in kroner per Vekt (20 Kg() Exporter in Exporter in Export pack- Bergen district aging at processor Loading at processing plant 1.00 Processors' selling costs 0.25 e 2nW8i.ffing up costs 1.00 Freight from processor to exporter 4.25 Intake to exporters warehouse 0.63 Storage and capital costs 2.86 largini ) on export vessel (or 0.43 Administrative expenses 4.20 Idling (?) 0.78 Total M 'MO ,53 It can be seen from the table that the reduction in cost could be ca kr/vekt (20 kg) corresponding to of present total costs. Total sales of stockfish have in the past 10 years before 1967 varied from 20,000 to 40,000 tonnes per year. A change as mentioned will therefore mean a cost reduction of million kroner/year. For example, with interest and depreciation, an investment of million kroner could be made. B. Technical rationalization of production A nuill.ber of measures to improve efficiency with direct or indirect effect will be possible also within present

30 ve1 28. structurai and buildings at the export plants: 1. A better planned and systematic utilization of the storage areas will, for many l reduce transport times and lost time and impmve communication and overview. 2. Building conditions should in part be able to be adjusted to meet normal requirements for permanent work places for people. 3. Better rooms for personnel with bath and wellventilated changing rooms should be arranged. (These factors are of essential importance for recruitment), 4. Lost-time analyses should perhaps be carried out at individual plants in order to reduce the level of lost time / high. which many exporters seem to feel is relatively Improvements in the individual operations should also be expected through this. For the various steps in the work process, the following measures are suggested (possible solutions are seen in relation to conditions at the individual exporters warehouses): 1. Tubs for bringing in fish be replaced with a system based on light wagons with bottom gates and existing systems of carts or wagons be improved. 2. Air conditioning or other alternatives for regulating drying rate be introduced in warehouses. 3. For efficiency improvements of sorting and pressing, be introduced systüi' or sorting at transport belts, transport of sorted fish in U shaped containers,and proper operation of presses.

31 Tail cutting, brushing and fish cleaning are carried out at suitable work stations at the sorting belt. 5. After7filling of pressed bundles following afterdrying should be made more efficient or abandoned, preferably by having the weight of the bundle adjusted to the degree of dryness of the fish. In that case, it will be necessary to have a reliable determination of average moisture content in the fish) which is probably difficult to carry out. 6. Marking of the jute (burlap) bag be carried out with more mechanized equipment. 7. The final packaging i n bags be simplified through p. 20 use of conveyor belts, ready-made bagsy or change-over to other types of packaging. 8. The transport carts for moving fish ^r- export be changed to more suitable types. Before these measures are carried out on a large scale, the alternatives should be tried and further developed, both in exporter warehouses and in other ways. A summary of the most important possible technical rationalization measures is given in table 6, which also shows the savings that may be possible. In total, the expenses are ca. 7.3 million kroner/year which could be reduced by ca. 50% = ca. 3.7 mill. kroner/year. Bergen, February 1970.

32 TABLE 6. Summary of the most important technical rationalization measures possible in production. Yearly costs Suggested Rough Estimatc Operation in 1000 kr. Changes of savings, % Receiving 600 Replacing tubs with high carts for emptying through bottom gate,etc 65 Replacing of wagons (carts) and improvement in adjusting to buildings 50 Installation of belt transport 50 Improvement of tipping system when filling storage bins 50 Storage Sorting Air condition or other drying (through weight control 50 loss) Storage in container loops or net bags - 1,950 Sorting at belt tables with aux. equip. placing fish in U-shaped containers 50 Improved arrangement for taking up fish, weighing, transport and pressing 50 Filled transport containers (U- Bundling 1,450 shaped) from sorting to scale on lifting table near press. Suitable operators. 50 Tail Cutting Weigh t ad justment o f bndles un Clean by use of milling spindle during sorting. 80 Labor simplificatioti,âfter-filling press and transport simplification 40 Moisture control of bundles 90 Weight adjusted to degree of moisture 100 Markimg burlap bagg Bagging Loading on vessel 150 Improved marking machine for marking burlap in rolls Sewiàg burlap on transport bands by hand or machine Changing transport eqqipment 25

33 C-0 ft. tie PV PIP 1 P. 22 ITEM le elf re / DRYING RACK BEAM 2 f ved POLES 3 C0r374ainere CONTAINERS g Neel/eq9,6ere skie ecnitir Ple/e RUNNER 6 Skirlyie RAIL 1*de/a bar- kar-ertfi eed ON.

34 4 /9 C D efrernal`)ee billtor-eitser ALTERNATIVE HANGING METHODS *-7- ' Nen9,ek/7/oe HANGING CLAMP