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In the fish processing sector, the further exploitation of by-products and wastes left after industrial production promotes sustainability of raw materials, access to added value and increased profitability, as well as contributes to environmental protection by reducing the volume of dumped products. Besides obvious value-added features, it also addresses the clear market demand dictated by prospects of the population growth. Given the limitations for further expansion of the husbandry sector, fish-based items available for human consumption represent a major avenue for coping with the pressing demands of increased population and enable the development of innovative food items of high nutritional importance. Current research is focused on the analysis of fish processing by-product utilization possibilities available up to date and introduces empirical findings of innovative food product development made on the basis of by-products left after traditional canned “Sprats in oil” production. In Latvia, “Sprats in oil” production is an integral part of fish processing sector and the rural economy overall. The production accounts for at least 30% of raw material left as by-products (smoked heads and, in some cases, tails) after such technological stage as smoked sprats processing into cans. Efforts were made to prepare value-added and attractive to customer food product made out of this fish-processing by-products, which are typically processed to a fishmeal or just dumped as waste. The study demonstrates a strong potential for its utilization to a range of fish pâté with various flavours and of high nutritious value.

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