US Markets for Tilapia Products

1. US Markets for Tilapia Products Kevin Fitzsimmons, Ph.D. Professor, University of Arizona Visiting Professor/Fulbright Scholar, Asian Institute of Technology / Kasetsart University Bangkok, Thailand Sec/Tres, American Tilapia Association President, World Aquaculture Society Tegucigalpa, HONDURAS August 2004

2. Introduction • Quick review of tilapia • Explosion in tilapia trade • US markets • Opportunities to expand markets

3. Tilapia production • Currently second in volume to carps • Prediction: Tilapia will become most important aquaculture crop in this century • Widest demand, no religious/cultural concerns, few environmental concerns • More genetic potential • Greatest variety of production systems

5. Farmed around the world. • Tilapia production in 100+ countries. • China is world’s largest producer. • Philippines, Thailand, Indonesia, Latin America, Egypt significant producers • Germany, Belgium, Spain, Canada, Korea, Japan, most states in US • Total production >1,500,000 mt in 2003

6. Global Tilapia Sales (farmgate) • For year 2000 • US $ 1,706,538,200(FAO Fisheries Circular No. 886) • 2003 sales >$ 2,500,000,000 • 2010 sales >$ 5,000,000,000

7. Tilapia - the aquatic chicken • Grows in all kinds of farms • Eats all kinds of food • Large eggs and easy to rear young • Lots of ways to prepare the fish

8. Ponds and cages

9. Intensive tank culture Tanks in Arizona Tanks in Eritrea

10. Intensive raceways Raceway Systems Extensive raceways

11. Intensive farms in buildings in cool climates

12. Intensive farms with recirculation in greenhouses

13. How did tilapia get so popular, so fast?

14. Tilapia - the Perfect “Aquaculture” Storm

15. Tilapia widely popular around the world and beyond. • Common names: Tilapia, chambo, boulti, lou fei, pla nil, St. Peters fish, mojara, freshwater and/or red snapper • Used in many cuisine, hundreds of recipes, often replaces over-fished local species • Eggs hatched and fry reared on International Space Station

16. Environmentally correct • Primarily vegetarian • Most farm systems cause little pollution • Tilapia were long ago established as exotic species, common food fish • Grown mostly in developing countries • Few diseases, essentially no chemicals used

17. Research & Development ISTA 6(Manila, Philippines, Sept 12 -16, 2004) • International Symposia on Tilapia in Aquaculture

18. Genetic Improvements in Tilapia (From: Mair, G., 2002)

19. US Tilapia consumption - 2003(187,000 mt of live weight = 412,260,000 lbs)

20. US Sales of tilapia • Imports in 2003 were $241,205,610 • US production of $30,000,000 at farm • 2003 sales were over $271,000,000 • 1994 - 2003 US tilapia sales (imports and domestic) exceeded one billion $$$

21. Top Ten Seafoods (U.S.)per capita (lbs)

22. Major fresh fillet buyers (US) • Major restaurant chains (Darden: Red Lobster, Bahama Breeze, Olive Garden, Landry’s: Joe’s CrabShack, Wille G’s, Rainforest Cafe), Ruby Tuesday, Applebees). • Major grocery chains (Safeway, Kroger, Winn-Dixie, Wegmans, Publix, Basha’s) • Food service (supply small restaurant & grocery chains) - SYSCO, Fleming Co., Shamrock

23. US. Tilapia imports 1993-2002

24. $ 174,215,165 (2002) $241,205,610 (2003)

25. 17,952 mt fresh fillets, 23,249 mt frozen fillets, 49,045 mt whole frozen (2003)

26. Major Tilapia Producers (for year 2002) • China - 706,000 metric tons / year • Philippines - 122,277 mt / year • Mexico - 110,000 mt / year • Thailand - 100,000 mt / year • Taiwan Province - 90,000 mt / year • Brasil - 75,000 mt / year • Indonesia - 50,000 mt / year

27. Consumer evolution in US • Ethnic buyers (Asian - Latino) • Up-scale restaurants • Casual dining • Club stores • Local groceries

28. US Tilapia Supply and Demand • Supply of fresh fillets primarily from Central America and Ecuador • Frozen fillets from China and Southeast Asia. • Demand for live fish in immigrant Asian communities

29. Fresh tilapia fillet products • Size (under 3 oz, < 85 g) 3-5 oz, 85 - 140 g 4-6 oz, 110 - 170 g 5-7 oz, 140 - 195 g over 7 oz, > 195 g • Skin on, shallow skin or deep skin • Individual wrap, 2 or 5 kg package, master pack

30. Fresh tilapia fillet product pricesFOB Miami • Size (under 3 oz, < 85 g) $2.80 - 3.00/lb 3-5 oz, 85 - 140 g $3.00 - 3.10/lb4-6 oz, 110 - 170 g $3.10 - 3.25/lb5-7 oz, 140 - 195 g $3.15 - 3.40/lbover 7 oz, > 195 g $3.35 - 3.55/lb • Variation in prices due to skinning, packaging, volumes and history with buyer • Additional variations with terms of payment

31. Quality control and assurance • National standards • ISO and HACCP (Hazard Analysis at Critical Control Points) • Industry standards • Buyer standards • Other (NGO’s)

32. Advertising

33. Current US 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

34. IQF Fillets

35. Smoked products

36. Impacts of “Industrial” Production of Tilapia • Spin-off some products into local markets • Availability of prepared feeds • Availability of domesticated stocks • Possibility of more production cooperatives

37. Historic consequences • Foreign investment, new jobs, and improved standard of living • Foreign trade and reliable income • Imports of technology and know-how (especially processing, handling and packaging) • Spin-off to other aquaculture • Improvements in personal hygiene • Many jobs for women

38. Historic consequences • Desire of small farmers to adopt methods of large growers • Increase in effluent generation • Eutrophication from lake cage farms • Increase in conflicts with fish eating birds • Imports of sex reverse hormones • Improved basic farming practices

39. Historic consequences (Industry by-products) • Leather goods from skin will become a significant contributor to profitability • Pharmaceuticals from skins • Formed fish products • Fertilizer • Fish meal

40. Predictions • Tendency for small farmers to “overshoot” level of technology • More “organic” tilapia products • Cut back on high level of protein in tilapia diets • Bird netting to discourage birds • Reduction in MT for sex reversal • Integrated farming to reuse effluents for crop irrigation

41. Predictions • World tilapia production (1,265,780 mt in 2000, FAO) reached 1,500,000 mt in 2003 and 2,000,000 mt by 2010

42. Aquaculture Collaborative Research Support ProgramThank you!Questions? The Aquaculture CRSP is funded in part by United States Agency for International Development (USAID) Grant No. LAG-G-00-96-90015-00 and by participating institutions.