Winds of Change in Japan's Seafood Industry

This episode shows how companies in Japan's seafood industry are adapting their business models to overcome challenges and increase sales.

[In Focus: China Powers Ahead in Global Auto Market]
The global auto industry is undergoing enormous changes as carmakers switch to clean energy vehicles and roll out smart technologies. This is fueling a realignment of the major players, with China moving closer to the front of the line.

[Global Trends: Japan's Inflatable Homes Offer Relief to Disaster Areas]
The frequency of earthquakes and other natural disasters around the world mean there is a constant need for temporary housing. We meet a university professor in Japan who designed an inflatable house that's providing relief to evacuees.

*Subtitles and transcripts are available for video segments when viewed on our website.

Winds of Change in Japan's Seafood Industry

With only certain types of fish being considered valuable, a sizeable portion of fish caught by professional fishermen end up being discarded. Wanting to eliminate this waste and make use of as much of their catch as possible, a Japanese company has come up with a unique business model that allows them to sell most types of unwanted fish.

Standard fish feed is usually made from powder containing a large amount of actual fish meat. However, rising costs have inspired a feed producer to create a new affordable type of fish feed that contains no fish meat and is made primarily from plant-based powder.

Global Trends

The temporary dwelling takes about 4 hours to construct and has insulation to make it habitable year-round.

Prof. Kitagawa decided to develop temporary housing that could be set up immediately after disaster struck.

Transcript

03:35

Carmakers from China took center stage at a major auto show in Europe last month.

03:40

The number of Chinese participants more than doubled from the previous event two years ago.

03:45

With the European Union planning to phase out diesel and gasoline cars by 2035,

03:50

many Chinese electric carmakers are counting on strong demand from the continent.

03:57

"Chinese EVs have a big advantage in autonomous driving and other smart technologies.

04:02

We also have a solid supply chain backing them."

04:09

The leader of one of Europe's car-making powerhouse has taken note of China's rise.

04:17

"In the 1980s, Japanese cars were said to be overrunning all other markets.

04:22

20 years later it was cars made in Korea.

04:25

Today it's Chinese electric cars."

04:29

China has quickly made its mark on the global market.

04:32

Three out of the 5 biggest sellers of EVs are Chinese firms according to a research firm.

04:40

The surge in demand for EVs is reshaping the global auto industry.

04:44

China is on track to become the biggest automobile exporter this year.

04:50

That means Japan would relinquish the top spot it has held for many years.

04:54

The country's automakers have been struggling to sell cars in China as they fall behind in the EV race.

05:01

Iconic Japanese brand Mitsubishi Motors is reportedly withdrawing from production in China due to its sluggish sales.

05:09

But China's rapid rise may not go unchecked.

05:12

The European Commission announced in recent weeks it's launching an investigation

05:16

into the subsidies that Chinese makers get from Beijing.

05:19

Global markets are now flooded with cheaper Chinese electric cars.

05:26

Their prices kept artificially low by huge state subsidies.

05:33

This is distorting our market,

05:36

and as we do not accept this distortion from the inside in our market,

05:42

we do not accept this from the outside.

05:45

If the probe finds that the state subsidies are giving an unfair advantage to Chinese EVs sold in Europe,

05:51

it could lead to the imposition of tariffs.

05:55

China has expressed its dissatisfaction with the move.

06:00

"The investigation by the European Union aims to shield its own industry in the name of fair competition.

06:07

But this is a case of blatant protectionism."

06:14

While the EU says it has no intention to cut itself off from China,

06:18

officials from Europe's big car-making nations voiced support for the probe.

06:24

"Europe must show it is determined to defend its economic and industrial interests.

06:28

So from that point of view, the probe is a very good decision which I welcome."

06:36

"It's good that the European Commission is taking a close look at these market segments and further steps

06:42

- should it turn out that there is something to it - will then have to be taken."

06:49

Carmakers from Japan, the US, Europe and South Korea have all had their own experiences

06:54

of being both welcomed and shunned in overseas markets.

06:58

Now it's China's turn as the shift to EVs puts the country in the spotlight.

09:32

Antakya, in southern Turkey, was devastated by earthquakes that hit the region earlier this year.

09:42

Soon after the disaster, three tent-shaped dwellings arrived from Japan.

09:48

They have plenty of headroom and the floor area is the size of a standard hotel unit.

09:54

There's enough space for a family of four.

09:58

Japan plans to send about 100 of the temporary homes to Turkey within this year.

10:09

Hello and welcome.
I've been waiting for you.

10:13

The home was developed by Professor Kitagawa Keisuke.

10:19

He started on a quest to build it after being issued a challenge of sorts by elementary schoolchildren

10:26

staying in an evacuation shelter after the 2011 Great East Japan earthquake and tsunami.

10:35

"Boys in the 3rd and 4th grades told me

10:37

they couldn't understand why it took half a year to build temporary housing.

10:41

They said, 'You're a college professor,

10:43

you should be able to figure out how to do it in a few weeks.'"

10:49

The professor teamed up with a private company to develop the house.

10:54

Setting it up is very easy.

10:56

First, it's unpacked from its case...

11:02

then it's fixed to the ground...

11:06

and inflated with an air pump.

11:14

The next step - spraying polyurethane foam on the inside -

11:19

is designed to keep the home comfortable inside regardless of the weather outside.

11:25

The whole job is done in about 4 hours.

11:28

Testing shows the dwelling can withstand winds of almost 290 kilometers per hour -

11:34

stronger than the gusts produced by a super typhoon.

11:39

Professor Kitagawa is also focusing his research on lowering costs by using materials

11:46

that can be easily sourced locally in the disaster-hit areas.

11:50

Starch glue in particular has caught his attention as an adhesive.

11:56

It's made from potatoes, which are found pretty much anywhere.

12:03

"If you mix it with water and finely shredded paper and fabric, you get something like this."

12:12

Now you have the heat insulating material for the dwelling.

12:17

Lined with polyurethane, it costs about 18,000 dollars to make one of these homes.

12:24

But Kitagawa says using a plant-based glue made from potatoes, corn, or rice will reduce the cost significantly.

12:35

From Japan's Tohoku region to Turkey in the Middle East,

12:39

lessons learned from past disasters are being applied and refined

12:44

to help people cope with whatever might come next.

13:55

With the cost of standard fish feed being highly volatile,

13:58

one company has come up with a plant-based feed to provide fish farmers with a more stable alternative.

14:05

Another company is taking difficult to sell fish

14:08

and turning them into a variety of delicious food products.

14:13

Today's On-Site Report features businesses that are tackling current issues facing Japan's seafood industry.

16:12

When fishing nets pull in their catch, they contain different types of fish.

16:16

In addition to the desirable fish,

16:18

they also pull in various types that are difficult or impossible to sell, which are called bycatch.

16:24

For example, this lionfish.

16:26

The poisonous spines on its fins make it difficult to process.

16:31

Or, this type of filefish that's considered edible,

16:34

but is difficult to sell when it's not in season.

16:38

Other fish can be considered bycatch because they don't meet size requirements

16:41

or because they just don't look appetizing enough for consumers.

16:46

Because they're considered unsellable, bycatch fish are usually discarded or sometimes used as bait.

16:53

Our crew recently traveled to the southwestern city of Fukuoka,

16:57

to meet Inokuchi Tsuyoshi who has started a business that makes use of bycatch.

17:05

Years of working in the seafood business made him aware

17:07

of the large amounts of fish that were going to waste.

17:13

"It's hard to see any kind of fish go to waste,

17:16

but especially fish that are being thrown away for reasons

17:18

that have nothing to do with their quality or flavor!"

17:23

"Good morning!"

17:26

Inokuchi sources the fish from a buyer who regularly purchases from several different fishermen.

17:33

From St. Peter's fish and Stargazers to Spotted Tail Morwong,

17:37

the middleman doesn't just source the fish for Inokuchi,

17:40

he even does some prep work to keep them fresh!

17:47

Some species, require a little more work than others.

17:53

For example, certain types of fish, like this tilapa,

17:57

have completely different bone structures and requires a skilled professional to debone them.

18:06

Inokuchi has come up with a variety of ways to season and flavor bycatch fish

18:11

in order to accentuate their unique flavor and texture profiles.

18:16

From thinly sliced gurnard in soysauce marinade to emperor bream in herb oil confit,

18:23

the company currently uses over 50 different seasonings to flavor its fish.

18:32

Since Inokuchi has no control over the amount or type of fish that comes in with each delivery,

18:38

he has created a unique business model to sell them.

18:43

In March of 2021, he opened a seafood box subscription service where registered clients across Japan

18:50

can regularly receive different types of rare fish delivered right to their door.

18:56

In less than 3 years, the company has already surpassed 11,000 subscribers.

19:04

Nanami and Daisuke Suzuki have been customers for about 6 months.

19:10

On the day we visited, they were trying yellow croaker marinated in soy sauce.

19:16

They chose to serve it on bowl of white rice with raw egg on top.

19:24

It's really tasty!

19:27

Offering rare types of fish is a great idea!

19:32

We always look forward to each delivery!

19:36

"Depending on the way we season or flavor it, any type of fish can become a hit.

19:41

By offering this service, I hope to provide our clients with a broad range of tasty fish

19:46

while reducing the amount of bycatch that goes to waste across Japan."

22:17

Along the coast of Ehime Prefecture...

22:20

Sea Bream farms are thriving.

22:22

The feed these red sea bream are eating

22:24

differs from standard feed and doesn't contain any fish powder at all.

22:30

After seeing volatile price swings in the fish-feed market,

22:33

Aquaculturist Akasaka Ryutaro decided to try developing fish feed without fish powder.

22:41

"Nearly 3 quarters of our costs usually go into fish feed.

22:44

When fish powder runs low, feed prices can sky rocket,

22:47

like they did 5 years ago when they increased by about 30%."

22:53

Akasaka, also felt that creating a feed

22:55

that didn't use fish powder could lessen the impact on marine resources, such as anchovy,

23:01

which is often used as a main ingredient in standard fish feeds.

23:06

In place of fish powder, Akasaka came up with a plant-based mixture

23:09

using soy beans, corn, and white sesame seeds for feeding young adult red sea bream.

23:16

The soybeans and corn provide the needed protein.

23:20

And the sesame seeds are rich in antioxidants,

23:23

which Akasaka says helps keep the meat fresh for longer periods of time.

23:30

After finding the right balance of ingredients, Akasaka ran into another major challenge.

23:39

"The biggest difference is in how the fish respond to it.

23:42

The feed made with fish powder gives off a strong odor,

23:45

so the moment you drop it in, they start devouring it.

23:48

The plant-based feed, however, doesn't have a fishy odor,

23:51

so it takes them much longer to react to it and start eating."

23:57

With standard feed, adult red sea bream only need to be fed once in the morning and once in the evening.

24:04

But this method doesn't work with the plant-based feed.

24:10

Aware of the Sea Bream's habit of coming to the surface when hungry,

24:14

Akasaka found that he could get them to eat the plant-based feed by pouring in smaller amounts

24:19

during the times the fish were closer to the surface.

24:26

After making this discovery, he then introduced an AI-driven automated feeding system.

24:33

It can gauge the appetite level of the red sea bream based on their movements

24:37

and determine the ideal amount of feed as well as when to release it.

24:46

Young adult sea breams' appetites peak during the last 6 months before harvesting.

24:51

By changing to plant-based feed,

24:53

aquaculturists don't have to worry about volatile pricing affecting their feed costs.

25:01

In 2021, they began selling red seabream fed with plant-based feed.

25:08

The fish have even found their way into a local sushi restaurant.

25:14

"Fish that are given standard fish feed can be a bit smelly.

25:17

But these sea bream don't smell at all and have just the right amount of fat."

25:23

This year, Akasaka expects to ship about about 100,000 fish raised on plant-based feed.

25:29

The texture and flavor differences allow him sell them for 10% to 20% more

25:33

than red sea bream raised on standard feed.

25:38

"I want to continue transitioning from fish-based feeds to plant-based feeds,

25:43

because it will also help to protect our natural resources.

25:48

If we can use it to feed 1 million red sea bream,

25:52

I believe this change will have a positive impact on the ocean."