Financial feasibility of producing value-added seafood from shrimp waste in quebec

Shrimp waste disposal represents a financial and environmental cost to processors and society. There have been successful biotechnology experiments in producing certain value-added marketable consumer products from shrimp waste. This study reports on the economics of that process and its commercial viability in Quebec. Discounted cash flow methods (NPV, IRR) and the payback period criteria were employed to conduct investment analysis in a technology that transforms shrimp processing waste into value-added surimi-shrimp nuggets. The planned extension was estimated to cost $4.3 M in capital investments and can process an estimated 5, 000 mt of shrimp nuggets per year at $2.62/kg. If the plant operates at full capacity (5, 400 hours per year) for 10 years, it will recover initial outlay and interest payments in 2.3 years with a net present value of $6.9 M and an internal rate of return of 43%. The expected values of net present value, internal rate of return and the payback period for the project, given varying output levels, were $3.27 M, 26% and 3.9 years, respectively.