Shares of Blue Star Foods Corp. (NASDAQ: BSFC) are experiencing a significant uptick in value following a recent business announcement. As of the latest update during the morning session, BSFC stock has surged by 13.17%, reaching $2.32.
Innovative Approach to Soft-Shell Crab Operations
Blue Star Foods Corp. aims to enhance its soft-shell crab operations through the adoption of advanced technology that integrates Artificial Intelligence (AI) with Ultraviolet (UV) light. This innovative approach is set to transform the traditional molting crab identification process, which is vital for the industry.
The soft-shell crab industry depends on accurately identifying busters, or crabs going through the molting stage, and catching soft crabs, or crabs before they create a new shell. Historically, this procedure has involved human inspection, which takes a lot of time and is prone to mistakes, which results in high death rates and inefficient operations.
Increasing Productivity and Cutting Expenses
The primary reason behind the labor-intensive aspect of the soft-shell crab shedding business is the need to manually and visually distinguish between peelers and busters, or molting crabs. By implementing an AI system combined with UV light technology, Blue Star Foods aims to automate this identification process.
This automation is expected to significantly reduce labor hours and costs, improve operational efficiency, and decrease mortality rates. Blue Star’s pilot facility operates around the clock with three shifts. Research shows that during the night shift, crabs molt at a pace that is thirty percent higher than during the first and second shifts.
However, night shift workers, who are more likely to be tired or distracted, often struggle to accurately identify busters, leading to increased errors and missed identifications. This, in turn, negatively impacts yield and overall efficiency, resulting in lower survival rates compared to other shifts.
Future Projections with AI-UV Light Technology
In traditional methods, there is a significant correlation between increased molting and mortality rates, showing an exponential growth curve. In contrast, Blue Star Foods anticipates that the integration of AI-UV light technology will result in a logistical growth curve.
As the molting rate increases, the mortality rate is expected to stabilize over time, as the AI system optimizes its processes. The deployment of AI combined with UV light technology is predicted to precisely and efficiently identify molting crabs, leading to reductions in labor hours, operational costs, and mortality rates, ultimately revolutionizing the soft-shell crab industry.
