Mazzetta Company CEO Tom Mazzetta is excited about the company's introduction of Oishii shrimp in 2019, a new line of premium shrimp that he says will exceed all current expectations for the industry.

What were the three most significant developments for your seafood business in 2018?

Without a doubt, the lack of and the cost of freight, especially truck freight, has had an impact across our supply chain. The availability of trucks and a shortage of drivers in some areas, along with the federal requirement to install electronic logging devices (ELDs) into all trucks to better track driver hours of service, have created rapid increases in trucking costs.

We have seem dramatic increases in freight costs almost overnight. This has led to higher costs throughout the supply chain and is something we will be focusing on in the coming year.

Tariffs also had a major impact on the entire seafood industry in 2018. Companies, including ours, have had to adjust how we purchase fish and make strategic decisions in collaboration with our customers in order to mitigate tariff costs. Likewise, we have seen dramatic shifts in exports of lobster from the United States to Canada.

As it relates to shrimp, importers don’t even know their final costs for up to three years after they bring the product into the United States. Sure we pay a duty at the time of import, but then over the next three years the US Department of Commerce conspires quietly on how they might discourage trade by changing methodologies, changing surrogate values and so on.

The result is that three years after importing shrimp into the United States and paying an initial duty on that product, the Commerce Department will often come back years later and announce that importers owe millions of dollars more in duties than they had originally anticipated.

Increased labor costs, consolidation and bankruptcies created turbulence in the areas fast-casual and casual dining in 2018. The result for us was having to learn to deal with change in a couple areas.

First, more demand was placed on us as an importer to provide certification and traceability records. This was a natural outgrowth for fast-casual and casual dining restaurants, as consumers continue to become more personally engaged and educated about where their food comes from.

Second, as these restaurants become more chef driven, great emphasis is being placed on the quality of all proteins, not just seafood. As a company, Mazzetta has always focused on premium quality seafood so we were happy to see this trend evolve and continue to expand from fine dining to casual and fast-casual restaurants.

What changes and developments do you expect your business to undergo next year?

After years of research, development, construction and trials, we are proud to be introducing a new line of premium shrimp that will exceed all current expectations for the industry. Oishii [pronounced oh-eh-shee] means “delicious” in Japanese. Oishii shrimp farms are within minutes of their processing plants and are transported via special vehicles with aerated containers to deliver the product live to plants.

This gives a tremendous flavor profile and taste retention to the product. Due to farm locations and the logistics of shrimp farming in relation to processing plants, this was previously unachievable in the industry, but has always been a goal for quality control.

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Oishii shrimp are processed immediately upon receipt at the plant with no added soak during transportation. Keeping the product alive until processing, going from swimming to frozen in less than four hours is paramount for the end product's taste, texture and visual appeal.

It all starts at the farm and hatchery. Specialty farming methods, including lined ponds, proprietary feed, enhanced bio-security measures and a selective breeding process have been years in development. These small differences add up to make Oishii Shrimp look and taste completely different than any other product.

Oishii Shrimp is 100 percent chemical free. No added hormones, phosphates, antibiotics or artificial preservatives are used to process Oishii Shrimp.

Looking ahead, what will be the three most important seafood industry developments in 2019?

Seafood is in higher demand than ever before, with more of us adding salmon, shrimp, and cod to our menus. However, we won't settle for just any seafood anymore. We want to know where it's coming from and that it was sourced responsibly. It is important that the seafood industry earns consumer trust.

Mazzetta Company sources products from 20 countries around the world, all of which is completely traceable. By extending our reach around the globe for well-managed, environmentally sound aquaculture and wild-caught fisheries, we are able to meet an ever-increasing demand for premium quality fish and shell-fish.

While most Americans still have a preference for shrimp and salmon, we see alternative species starting to gain some traction. In particular, we are looking at wild-caught species from New England such as American-caught and processed haddock. This has been a popular fish in New England for years but is becoming more popular in the Midwest as a mild-tasting white fish.

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Likewise, we see more Americans looking to domestically caught and processed fish. This is especially true as tariffs become more of a burden for importers and eventually consumers.

Innovation in shrimp processing will be an important trend for us in 2019. We anticipate that we will be buying approximately 20 percent of our shrimp from indoor shrimp farms. New technologies will lessen some of the risk factors from the external environment, such as disease and impacts of climate change. Additionally, indoor shrimp farming will help meet consumer demand for sustainability, traceability, and security. Indoor shrimp farming can also mitigate environmental impacts of shrimp farming by reducing wastewater and runoff.

At the same time, we see more of our suppliers converting to lined ponds for traditional shrimp farming versus unlined dirt ponds. This, too, produces a better quality shrimp and helps to mitigate environmental and disease issues.