Analysis of the International Markets for Tilapia Kevin Fitzsimmons, Ph.D. University of Arizona...

Analysis of the International Markets

for Tilapia

Kevin Fitzsimmons, Ph.D.University of ArizonaTucson, Arizona, USA

&Vice President, American Tilapia

Association

President Elect, US. Chapter of World Aquaculture Soc.

Introduction

Tilapia are one of the most important domesticated fish today.

Tilapia will be the single most important aquaculture product in the 21st Century

Introduction

Today I will explain why I believe that tilapia markets will continue to expand

Where there may be problems in supplies

Advances in productionOpportunities in world markets

Current Status of Tilapia Markets

Production widely distributed around the world.

Grows well in most production systems.

Established market demand.Popular in several product forms.

Production widely distributed around the world.

FAO reports production in 85 countries.

East Asia, Indonesia, Latin America, Caribbean, Middle East, are primary tropical producers

Germany, Belgium, Spain, Canada, Korea, Japan, most states in US

Production widely distributed around the world.

Wild catch being replaced by farm raised

Used in many cuisine, hundreds of recipes

Tilapia, boulti, pla nil, mojara, St. Peters fish, freshwater snapper

Grows well in most production systems

PondsCagesRaceways, round tanks, recirculating

systemsRanching (lake releases)Freshwater, Brackish water, Estuarine,

and Marine

Grows well in most production systems

Polyculture with shrimp, catfish, carp

Herbivorous and /or omnivorousGood growth in fertilized pondsMany byproducts can be used in

tilapia feeds

Pond culture in the Philippines

Ponds and cages

Farm pond in Brazil Reservoir pond in Arizona

Cages in irrigation ditches

Cages in Egypt10 m2 cages near Alexandria

Cages in Irrigation Reservoirs100 m2 cages in Philippines

Intensive ponds

Ponds in Arizona

Ponds in Costa Rica

Intensive tanks

Tanks in Arizona

Tanks in California

Intensive Raceway Systems

Raceways in Arizona

Raceways in Mexico

Production directly in delivery ditches

Pond culture to cotton irrigation

Other benefits of Tilapia

Simple hatchery technologyDisease resistantGrow well at high densitiesSeveral color variants availableMore “domesticated” than most

aquaculture crops

Established market demand

Accepted in many national dishesPopular in many formsLive, Whole, fillets, fresh and

frozen, smoked, sashimi

Problem areas

Low fillet recovery rateSlow growing femalesOff-flavors

Advances and Solutions: Low fillet recovery rate

Selective breeding programs (GIFT, Israel, US)

Tilapia genome project Transgenics - Growth hormonesGrowth enhancers - Bovine

SomatotropinsBetter processing equipment

Advances and Solutions: Slow growing females

Methyltestosterone for sex-reversalGenetically male tilapiaAll male hybridsHigh density cultureO. niloticus with larger females

Advances and Solutions: Off-flavors

Depuration systemsControl of blue-green algaeProduction in system with limited

access to benthic algae

Why tilapia market will surpass other species in importance.

Production constraints being reduced, and costs decreasing

Markets are still expandingMarket prices holdingMore training & experience of

growers, processors and marketers

Why tilapia markets will surpass other species in importance.

Ecologically sustainablePopular with environmentalistsConsumption not restricted by

religious observancesMild flavor preferred by many

consumers

Why tilapia markets will surpass other species in importance.

Carp: markets are limitedSalmonids and shrimps need high

levels of fish meal, limited ingredients for diets

Most other species need higher water quality, competition for sites

Major Tilapia Producers

China - 150,000 metric tons / yearPhilippines - 95,000 mt / yearTaiwan - 90,000 mt / yearMexico - 90,000 mt / yearIndonesia - 50,000 mt / yearThailand - 40,000 mt year

Major Tilapia Products in International Trade

China - whole frozen, IQF filletsPhilippines - all domesticTaiwan - whole & IQF, sashimiMexico - all domesticIndonesia - IQF filletsThailand - IQF fillets

Estimated cost of production

China - $1.00 / kgPhilippines - $1.10 / kgTaiwan - $1.50 / kgMexico - $1.30 / kgIndonesia - $1.20 / kgThailand - $1.30 / kg

International markets

China has taken a large % of Taiwan shareChina has growing domestic demand Honduras has rapid expansionColombia, Cuba, Brazil and Mexico are

supplying strong domestic marketsPrices on international markets will not

increase from present levels.

International markets

Ecuador has passed Costa Rica as supplier of fillets to US

Ecuador integrating with shrimp productionColombia, Thailand and Mexico were

exporters to US, but exports levels decreased while production increased

Philippines is big producer, a few exports to Japan

Tilapia in the Americas

US. Tilapia imports 1993-2000

Sources of imported tilapia to US

0

10000

20000

30000

40000

50000

60000

70000

1993 1994 1995 1996 1997 1998 1999 2000

(LW

E in

met

ric

tons

)

others

Thailand

Indonesia

Colombia

China

Mexico

Jamaica

Ecuador

Costa Rica

Taiwan

Source of US Tilapia supply 2000 (by volume)

2000 US Tilapia Supply

OTHER4%

CHINA24%

JAMAICA1%

COSTA RICA10%

ECUADOR13%

INDONESIA3%

TAIWAN28%

HONDURAS5%

US12%

Tilapia aquaculture in EcuadorTILAPIA PRODUCTION IN ECUADOR

0

2,000

4,000

6,000

8,000

10,000

12,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000est.

Year

Pro

du

ctio

n (

mt)

Ecuador in International Market

Replacing shrimp because of white spot disease

Using shrimp infrastructureExporting to US and EUWill they revert to shrimp if

disease is controlled?

Tilapia aquaculture in Colombia

TILAPIA PRODUCTION IN COLOMBIA

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

1994 1995 1996 1997 1998 2000 est.

Year

Pro

du

ctio

n (

mt)

Colombia in International Market

Before 1980 had strong domestic market

Developed export trade to USDomestic market has grown so strong

that exports have endedColombia imports tilapia from

Venezuela and Ecuador

International market changes

Increasing domestic consumption in producing countries especially Colombia, Brazil, Mexico, C.R.

Philippines & China more exports EU is developing demandZimbabwe, Nigeria, Kenya, other

countries of Africa will supply EU

Current International Market Trends

Increase in demand for all forms of tilapia

Demand increase will be greatest for fresh fillets

Prices have been constant for several years and will remain stable, will not increase with inflation.

Current International Market Trends

US and EU growers will concentrate on live sales and highly processed forms

Southeast Asia and Latin America will be primary US suppliers

Africa, Latin America and Caribbean will supply EU

New product forms

Smoked tilapia Sashimi grade tilapia

Carbon monoxide debateCO used to preserve filletsMaintains “fresh appearance”Still under review as treatmentMay improve shelf life, reduce bacteriaMay have to report as treated with a

preservative

Marketing goals for Peruvian Tilapia producersIncrease domestic demandProcess in Peru (lower costs, value

added, higher returns)Provide variety to local marketsMaintain environmental awarenessMarket tilapia as ecologically efficient

and sustainable

Marketing goals for Peruvian Tilapia producersUse seafood restaurants for product

introductionsGrocery stores and seafood storesUse story of Christ and the MiracleCompete with chicken, beef, pork

as well as other fish