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High Pressure Processing Manufacturing Costs and Facility Design Considerations for Commercial HPP Manufacturing May y6, 2010 0

Introduction Mike Billig VP Marketing, Gridpath Solutions Inc. Gridpath Solutions is the NA Partner of NC Hyperbaric 14 Years as VP Marketing and Sales, AmeriQual Foods USDA Contract Manufacturer 3-NC Hyperbaric Wave 600 300L Machines

Agenda Commercial Food Applications HPP Manufacturing Options Facility Requirements Support Equipment Packaging Compatibility and the Effects on Manufacturing Capacity and Costs Operational and Economic Considerations

Commercial applications in the world:

HPP commercial products Meat products Destruction of pathogens : Listeria, Samonella, coliforms Shelf life increase Stabilisation of preservative-free or low salt content products Country Year Products Spain 1998 Sliced cooked ham and tapas USA 2001 Sliced cooked products and proscuitto ham USA 2001 Poultry products USA 2002 Pre-cooked chicken and beef strips Spain 2002 Sliced cooked chicken, ham and turkey products, Serrano cured ham Italy 2003 Proscuitto ham, salami & pancetta Germany 2004 Cured and smoked sliced and diced ham Japan 2004 Nitrites-free bacon, sausages and sliced meat USA 2005 Ready-to-eat meat based products Spain 2005 Cured meat products & Serrano ham Canada 2006 Cured meat products USA 2006 Whole roasted chicken USA 2006 Sliced cooked turkey and chicken Canada 2008 Sliced deli meats Canada 2009 Sliced deli meats

HPP commercial products Vegetable products Sanitisation and shelf life increase. Preservation of colour, flavour and vitamins. Reduction of PPO activity in avocado. Reduction of the starch retrogradation of the rice. Country Yea r Products Japan 1990 Fruit jams and fruit and vegetable sauces Japan 1994 Pre-cooked & hypoallergenic rice USA 1997 Avocado products : guacamole, sauces Italy 2001 Fruit jams USA 2002 Avocado products Mexico 2003 Avocado products Mexico 2003 Avocado products Mexico 2003 Avocado products Canada 2003 Apple products : jam and sauce USA 2004 Tofu Spain 2005 RTE vegetable meals USA 2006 Tomato sauces Australia 2008 Fruit pures & coulis

Commercial HPP products Juices and beverages Sanitisation and shelf life increase Destruction of pathogens microorganisms Preservation of colour, flavour & vitamins of freshly squeezed fruits Country Year Product Japan 1991 Grapefruit juice Japan 1992 Mandarin juice France 1994 Citrus juices Mexico 2000 Citrus juices and smoothies Lebanon 2001 Fruit juices USA 2001 Apple juice Portugal 2001 Apple & citrus blended apple juice Italy 2001 Fruit and vegetable juices USA 2002 O range juice, lemonade and smoothies Czech Republic 2004 Broccoli & apple, beetroot, carrot juices Northern Ireland 2006 Smoothies Australia 2008 High quality juices

HPP Commercial Products Shellfish and fish Shelf life increase Opening seafood shell at 200 to 350 MPa Easy shellfish meat extraction Sanitization (inactivation of Vibrio) i ) Country Year Products USA 1999 Oysters USA 2001 Oysters USA 2001 Oysters USA 2001 Oysters USA 2003 Crab Canada 2004 Seafood Canada 2004 Lobsters N. Zealand 2004 Mussels shucking for meds Italy 2004 Desalted cod USA 2005 Lobsters Canada 2006 Seafood Japan 2007 Shellfish USA 2008 Crab

HPP Manufacturing Options Contract Manufacturing Advantages Manage Capital Risks Control Operational Costs Eliminate line capacity constraints and risks Shorten time to market Ability to analyze market performance while minimizing entry costs Take advantage of contract manufacturer s processing expertise In House Production

HPP Manufacturing Options Contract Manufacturing Disadvantages Higher Manufacturing Cost Logistics Challenges Freight Costs Less Usable Shelf Life

HPP Manufacturing Options In House Manufacturing Advantages Lower HPP Processing Costs No Logistics Challenges No Freight Costs Maximum Usable Shelf Life For Customers and Consumers For Internal Production Efficiencies Contract Processing Opportunities Proprietary Technology

HPP Manufacturing Options In House Manufacturing Disadvantages Capital Investment Required Equipment Building Longer Initial Time to Market New Technology

Facility Requirements Processing Room Design Inside Existing Facility In New Facility Room Environment Ceiling Height Requirements Line Design and floor Space Requirements Floor Requirements Line Design and Floor Space Requirements HPP Equipment Placement

Facility Requirements Line Design and Floor Space Requirements Support Equipment Infeed systems Unloading systems Product drying Pack Off Stations HPP Intensifier Placement Floor level Overhead Separate room

Equipment Implementation Example of Wave 6000/420

Equipment Implementation Dual Line System with Support Equipment

Facility Requirements Product control Process Flow Separation of Processed and Unprocessed product Documentation Product Taken to Processing Line Process Documentation Post Process Tracking

High Pressure Processing Industrial Equipment Throughput from 250 kg/hour 300 L 55 L 135 L 300 L Tandem Up to 2.5 tons / hour: Wave 6000/420

Infeed Conveyor

Carrier Unloader

Drying System

Package Compatibility Vacuum or gas flush. Semi-rigid trays. Efficiency varies, efficacy does not.

Package/Process Functionality 15% Compressibility Geometry/Memory Film Contact Label Application

Packaging g Effect on Economics Package design and loading efficiencies Cycle Times Gas flush Load density Product hold time at pressure

Typical Modifications Gas reduction. Shallow draw. Geometry change. Label Application. Label Material change.

Loading Efficiency Product carriers cut to suit application. Utilization of space impacts throughput. Infeed Systems Gas takes up space. Gas is more compressible.

Cycle Time

Operational/Economic Considerations Equipment decisions HPP equipment Horizontal for speed and process control Equipment uptime Number of Intensifiers Intensifier Location Support Equipment Integration Support Equipment Integration Production scheduling Labor Rates Utility Cost Spare Parts cost

Operational Considerations Production Line Scheduling Line Manning One Person Loading Carriers One Person Operating Machine and Documenting the Process. One Person Unloading Carriers Support groups Warehouse Take Product HPP Line Take Processed Product to Warehouse

Operational Considerations Support groups Quality control In Process and Post Process Product Evaluation Maintenance Maintain Machine Uptime Sanitation Change High Pressure Tubing Change Intensifier Seals Maintenance Cost $4.00 to $4.50 Per Cycle Daily to Weekly Based on Failure Frequency

Economic Considerations Fixed OH Allocation Cycle Times/Package Design Total cost to HPP products $0.03/lb 03/lb - $0.04/lb plus fixed overhead allocation Equipment cost amortized over 7 yrs Labor production and maintenance Utilities Installation costs Facilities modification

Case Study With Proper Planning, Equipment Installation is Efficient Two NC Hyperbaric Wave 6000 300L Installed and Operational in 7 days Production Commenced on Day 10 Ran Continuously 24/7 for 5 months Equipment Uptime Over 95%

High Pressure Processing Thank You Michael Billig (812) 490-1241