Denmark and Greenland: Fish By-Products Valorisation Business Models

Context and Challenges

In Greenland, efforts are centred on valorising fish by-products to create new revenue streams and reduce environmental impact. Co-creation workshops brought together vessel owners, processing companies, food producers, policymakers and support organisations to ideate and refine business models that aligned with global circular economy objectives. Stakeholders identified three innovative applications for fish by-products, which were producing nutritional supplements e.g. fish-based oils or powders, production of cheeky cod (cheek meat from cod), which is a delicacy product and a business concept where fresh fish (by-catch), shellfish and seaweed are consolidated in a receiver station in Nuuk, near the new international airport for export and the local market. This commercially sustainable model for nutritional supplements leverages advanced extraction technologies to convert waste materials into high-value compounds, including Omega-3 oils and bioactive extracts, supporting sustainable fisheries, fostering local job creation, and enhancing community well-being.

In Denmark, initiatives also focused on valorising fish by-products, integrating circular practices and wastewater management in the fish processing industry. Transforming cod by-products into nutraceuticals and advancing automated wastewater treatment systems to recover nutrients exemplified the alignment of technological innovation with sustainability goals. The Co-creation workshop facilitated iterative prototyping of nutrient recovery technologies, ensuring their feasibility and compatibility with existing operations. While these innovations underscored Denmark’s strength in technological and circular economy integration, challenges such as high costs and logistical barriers highlighted the importance of scalable solutions.

Best Practice Identified

Below the full explanation of the best cases identified

Specific case I: Omega-3 functional beverage in Denmark.

The concept of maximizing the use of fish by-products has emerged as one of the key focuses for advancing sustainability and innovation in the blue bioeconomy within the pilot regions. Among the various ideas explored, the standout solution as the best practice is an innovative proposal to develop an Omega-3 nutrition drink targeted at the rapidly growing Chinese market. Industry partners highlighted how the dairy industry has significantly advanced compared to the fishing industry, diversifying dairy products extensively (e.g., multiple yogurt flavours, healthy dairy sports drinks with various flavours). The following section provides a step-by-step description of the proposed best practice based on the Omega-3 nutrition drink concept.

Social and Environmental Impact

The proposed Omega-3 nutrition drink exemplifies a best-practice model for aligning sustainability principles with market opportunities. It presents the potential to effectively leverage the resources and capabilities within the pilot regions and can be supported by social innovation and corporate governance recommendations (D4.1 and D4.3). The concept combines health-focused innovation with a circular approach by transforming fish processing waste into high-value, consumer-friendly products.

• Environmental Benefits: Utilization of waste materials to support circular economy principles.
• Social Benefits: Creation of local jobs, particularly in fish processing and sustainable production. Health Impact: Improved health outcomes from increased Omega-3 consumption, particularly among children, the elderly, and health-conscious professionals. Cultural Relevance: Alignment with local dietary habits and traditional medicine, ensuring greater consumer acceptance.

Implementation Guidelines

• Co-creation with local stakeholders: Collaborate with local fishing communities to gather raw materials from pilot regions. Engage with academic institutions to develop extraction technology production protocols and with financial institutions to invest in extraction technology
• Product innovation and branding: Diversification of nutrition drink; Campaigns focused on health benefits and sustainability
• Sustainability measures: Use recyclable, biodegradable, or reusable materials tailored for long-distance shipping while minimizing carbon footprint. Leverage innovative packaging solutions such as algae-based bioplastics
• Market access and distribution: Engage Chinese government agencies, NGOs, and industry associations in the export strategy. Co-create solutions for aligning the business model with Chinese environmental regulations and consumer expectations.

Key To-Dos for Stakeholders

• Fishing Cooperatives and Processing facilities: Develop efficient collection and processing systems for fish by-products. Ensure the Omega-3 oil meets food-grade standards for refinement and encapsulation. Collaborate to optimize the supply chain for consistent raw material availability.
• Product Development and Innovation: Develop flavours appealing to Chinese consumers, focusing on popular tastes like lychee, green tea, and plum. Design eco-friendly, innovative packaging solutions using sustainable materials (e.g., algae-based bioplastics).
• Regulation Bodies and Certification Organizations: Ensure compliance with Chinese food safety and health regulations (e.g., CFDA standards). Obtain necessary certifications for sustainability and health, such as MSC and HACCP, to build consumer trust.
• Distribution and Logistics: Establish partnerships with online platforms. Develop carbon-neutral transportation solutions for product export, aligning with sustainability goals.

The Chinese market offers a unique combination of opportunities for an Omega-3 nutrition drink, driven by its vast and diverse consumer base, growing health consciousness, and cultural acceptance of functional foods offered in flavours to suite Chinese’s tastes such as goji berry and matcha. With an increasing emphasis on preventative healthcare and nutritional well-being among Chinese consumers, demand for health-focused products is surging, supported by a robust e-commerce infrastructure that enables efficient market penetration and scalability. An additional key factor in the market’s appeal is the positive reputation and perception of food products originating from Europe. European products, particularly those from Scandinavia, are often associated with high quality, sustainability, and innovation, creating a favourable image that can enhance consumer trust. The “country of origin effect” plays a significant role in the Chinese market, where European food products are perceived as premium and reliable. Scandinavian countries, known for their focus on sustainability, environmental consciousness, and high standards in food safety, further reinforce this positive perception. By tapping into these factors, the business can effectively position itself to meet the increasing demand for health-focused, sustainable products in this dynamic and lucrative market.

Possible expansion of the market:

• Explore opportunities to integrate algae cultivation (i.e., Estonia) into the production pipeline as an additional resource for the Asian market.
• Develop dual-purpose products, such as Omega-3 oils and algae-based bioplastics, for export.

Specific case II: Dog food from fish processing waste in Greenland.

Inspired by successful models from the Faroe Islands, where Marine Biotech, partnered with European firms to turn fish waste into valuable ingredients like peptides, collagen, oil, and proteins, small producers were encouraged to convert fish waste into high-value products. Qalut, a small business based in the South of Greenland used waste from fisheries to create an innovative dog food line. This approach not only generates local economic value but also aligns with Greenland’s circular economy aspirations, ensuring sustainable growth rooted in community engagement and resource efficiency.

Social and Environmental Impact

• Social impact: empowers local communities to adopt sustainable practices by transforming part of the 45,000 tons of unprocessed fish waste—such as bones, skins, and innards—into valuable products like dog food, while respecting traditional lifestyles.
• Environmental impact: reduce waste production supporting circular economy.

Implementation Guidelines

• Co-creation with local stakeholders: Collaborate with local fishing communities to collect fish waste.
• Product innovation and branding: Position the pet food as high-quality product with eco-friendly credentials.
• Sustainability measures: Implement sustainable packaging and marketing strategies that align with circular economy principles.
• Market access and distribution: Online and local shops. Work with policymakers to overcome regulatory hurdles, if any, and obtain certifications.

Key To-Dos for Stakeholders

• Local Fishing Communities: Establish waste collection systems at fishing sites, train staff in proper waste segregation and storage and maintain quality standards for waste handling.
• Processing Companies: Develop standard operating procedures for waste processing. Invest in appropriate processing equipment. Create quality control systems and obtain necessary certifications and permits.
• Local Government: Create a supportive regulatory framework. Offer financial incentives or grants. Monitor environmental compliance.

Scaling and replicability

The scaling and replication of this fish waste valorisation model begins with a thorough assessment of local conditions, mapping waste volumes and evaluating infrastructure needs. This initial groundwork leads to a carefully managed pilot program where small-scale processing allows for testing and refinement of product formulations while gathering crucial market feedback. As the model proves successful, expansion follows naturally through increased processing capacity and broader collection networks, potentially incorporating new product lines. Throughout this growth, knowledge transfer remains essential – proper documentation, training programs, and mentorship ensure that successful practices can be effectively replicated in other communities, creating a sustainable cycle of implementation and improvement.