Analysis of the International Markets for Tilapia

1. 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.

2. Introduction • Tilapia are one of the most important domesticated fish today. • Tilapia will be the single most important aquaculture product in the 21st Century

3. Introduction • Today I will explain why I believe that tilapia markets will continue to expand • Where there may be problems in supplies • Advances in production • Opportunities in world markets

4. 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.

5. 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

6. 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

7. Grows well in most production systems • Ponds • Cages • Raceways, round tanks, recirculating systems • Ranching (lake releases) • Freshwater, Brackish water, Estuarine, and Marine

8. Grows well in most production systems • Polyculture with shrimp, catfish, carp • Herbivorous and /or omnivorous • Good growth in fertilized ponds • Many byproducts can be used in tilapia feeds

9. Pond culture in the Philippines

10. Ponds and cages Reservoir pond in Arizona Farm pond in Brazil

11. Cages in irrigation ditches

12. Cages in Egypt 10 m2 cages near Alexandria

13. Cages in Irrigation Reservoirs 100 m2 cages in Philippines

14. Intensive ponds Ponds in Arizona Ponds in Costa Rica

15. Intensive tanks Tanks in Arizona Tanks in California

16. Intensive Raceway Systems Raceways in Arizona Raceways in Mexico

17. Production directly in delivery ditches

18. Pond culture to cotton irrigation

19. Other benefits of Tilapia • Simple hatchery technology • Disease resistant • Grow well at high densities • Several color variants available • More “domesticated” than most aquaculture crops

20. Established market demand • Accepted in many national dishes • Popular in many forms • Live, Whole, fillets, fresh and frozen, smoked, sashimi

21. Problem areas • Low fillet recovery rate • Slow growing females • Off-flavors

22. Advances and Solutions: Low fillet recovery rate • Selective breeding programs (GIFT, Israel, US) • Tilapia genome project • Transgenics - Growth hormones • Growth enhancers - Bovine Somatotropins • Better processing equipment

23. Advances and Solutions: Slow growing females • Methyltestosterone for sex-reversal • Genetically male tilapia • All male hybrids • High density culture • O. niloticus with larger females

24. Advances and Solutions: Off-flavors • Depuration systems • Control of blue-green algae • Production in system with limited access to benthic algae

25. Why tilapia market will surpass other species in importance. • Production constraints being reduced, and costs decreasing • Markets are still expanding • Market prices holding • More training & experience of growers, processors and marketers

26. Why tilapia markets will surpass other species in importance. • Ecologically sustainable • Popular with environmentalists • Consumption not restricted by religious observances • Mild flavor preferred by many consumers

27. Why tilapia markets will surpass other species in importance. • Carp: markets are limited • Salmonids and shrimps need high levels of fish meal, limited ingredients for diets • Most other species need higher water quality, competition for sites

28. Major Tilapia Producers • China - 150,000 metric tons / year • Philippines - 95,000 mt / year • Taiwan - 90,000 mt / year • Mexico - 90,000 mt / year • Indonesia - 50,000 mt / year • Thailand - 40,000 mt year

29. Major Tilapia Products in International Trade • China - whole frozen, IQF fillets • Philippines - all domestic • Taiwan - whole & IQF, sashimi • Mexico - all domestic • Indonesia - IQF fillets • Thailand - IQF fillets

30. Estimated cost of production • China - $1.00 / kg • Philippines - $1.10 / kg • Taiwan - $1.50 / kg • Mexico - $1.30 / kg • Indonesia - $1.20 / kg • Thailand - $1.30 / kg

31. International markets • China has taken a large % of Taiwan share • China has growing domestic demand • Honduras has rapid expansion • Colombia, Cuba, Brazil and Mexico are supplying strong domestic markets • Prices on international markets will not increase from present levels.

32. International markets • Ecuador has passed Costa Rica as supplier of fillets to US • Ecuador integrating with shrimp production • Colombia, Thailand and Mexico were exporters to US, but exports levels decreased while production increased • Philippines is big producer, a few exports to Japan

33. Tilapia in the Americas

34. US. Tilapia imports 1993-2000

35. Source of US Tilapia supply 2000 (by volume)

36. Tilapia aquaculture in Ecuador

37. Ecuador in International Market • Replacing shrimp because of white spot disease • Using shrimp infrastructure • Exporting to US and EU • Will they revert to shrimp if disease is controlled?

38. Tilapia aquaculture in Colombia

39. Colombia in International Market • Before 1980 had strong domestic market • Developed export trade to US • Domestic market has grown so strong that exports have ended • Colombia imports tilapia from Venezuela and Ecuador

40. International market changes • Increasing domestic consumption in producing countries especially Colombia, Brazil, Mexico, C.R. • Philippines & China more exports • EU is developing demand • Zimbabwe, Nigeria, Kenya, other countries of Africa will supply EU

41. 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.

42. 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

43. New product forms Smoked tilapia Sashimi grade tilapia

44. Carbon monoxide debate • CO used to preserve fillets • Maintains “fresh appearance” • Still under review as treatment • May improve shelf life, reduce bacteria • May have to report as treated with a preservative

45. Marketing goals for Peruvian Tilapia producers • Increase domestic demand • Process in Peru (lower costs, value added, higher returns) • Provide variety to local markets • Maintain environmental awareness • Market tilapia as ecologically efficient and sustainable

46. Marketing goals for Peruvian Tilapia producers • Use seafood restaurants for product introductions • Grocery stores and seafood stores • Use story of Christ and the Miracle • Compete with chicken, beef, pork as well as other fish