International Production and Markets for Tilapia

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International Production and Markets for Tilapia

• Kevin FitzsimmonsUniversity of Arizona
• American Tilapia Association
• Salvador, BRAZIL
• May 20, 2003

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Introduction

• Review worldwide tilapia trade
• Suppliers and consumers in the Americas
• Opportunities to expand markets

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Tilapia trade

• Currently third in volume to carps salmonids
• 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

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Established market demand

• Accepted in many national dishes
• Popular in many forms (live, whole, fillets,
  fresh and frozen, smoked, sashimi, fried skins)

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Ponds and cages
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Intensive tank culture
Tanks in Arizona
Tanks in California
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Raceway Systems
Intensive raceways
Extensive raceways
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Intensive farms in buildings in cool climates
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Intensive farms with recirculation in greenhouses
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Integrated with crop irrigation
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Genetic improvements in tilapia
(From Mair, G., 2002)
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International Research ISTA(next in Manila,
Philippines, Sept 2004)

• International Symposia on Tilapia in Aquaculture

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Major Tilapia Producers (for year 2002)

• China - 706,000 metric tons / year
• Mexico - 102,000 mt / year
• Thailand - 100,000 mt / year
• Philippines - 92,284 mt / year
• Taiwan Province - 85,000 mt / year
• Brazil - 75,000 mt / year
• Indonesia - 50,000 mt / year

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Global Tilapia Sales (farmgate)

• For year 2000
• US 1,706,538,200 (FAO Fisheries Circular
  No. 886)

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Tilapia production in the Americas
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Production of Tilapia in the Americas 2002 (by
volume)
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US Tilapia consumption - 2002(133,140 mt of live
weight)
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US. Tilapia imports 1993-2002
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174,215,165 (2002)
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56,083,527 imports Jan-Mar 2003

• 2003 Imports should be gt 224,000,000

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US Consumption of tilapia

• 705,000,000 imports in last 10 years
• 2003 Imports should be gt 224,000,000
• US production of 30,000,000 at farm
• 1994 - 2003 US tilapia sales (imports and
  domestic) exceed one billion
• 2003 sales will be 250,000,000

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Typical prices for Tilapia products sold in the
U.S. (May 2003.)
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Mexico - 102,000 mt
Tilapia-shrimp farm in Sonora
Pond Tilapia farm in Tamaulipas
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Markets in Mexico
Raceway system, Tamaulipas

• Strong domestic markets on ice, fillets in
  grocery stores
• All domestic consumption - Will eventually
  develop export markets.

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Brazil - 75,000 mt
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Tilapia production Markets in Brasil

• Production in Southeast and Northeast
• Red tilapia in Southeast for fee-fishing and food
• Cage farms allowed in NE reservoirs.
• Tilapia leather industry
• Jump in interest with ISTA 5 in Rio.
• Developing export markets.

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Tilapia production in Ecuador

• Replacing shrimp because of white spot and other
  shrimp diseases
• Using shrimp infrastructure
• Exporting to US and EU
• Benefits to shrimp culture with polyculture

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Tilapia production in Ecuador and shrimp viral
infections
White Spot
Taura
IHHN
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Red strains of tilapia most popular for brackish
polyculture systems
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• Tilapia production in outside ponds with shrimp
  in covered ponds

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Costa Rica - 15,000 mt
Acuacorporacion ponds in Cañas, Costa Rica
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Jamaica - 5,200 mtTilapia production 1980-2001
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USA ? 9,000 mt

• Production in many states
• Mostly intensive systems, many recirculating
• Sales to ethnic markets as live fish, high value

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Expanding markets

• Quality control and assurance
• Advertising
• Product placement
• Endorsements
• New recipes and product forms

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Quality control and assurance

• National standards
• HACCP (Hazard Analysis at Critical Control
  Points)
• Industry standards
• Buyer standards
• Other (NGOs)

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Advertising
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Direct retail sales
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www.tilapia.org
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Product placement

• Saving Faith
• Murder mystery
• Detective fixes elegant tilapia dinner to seduce
  the beautiful blonde.

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Endorsements

• Dear Kevin,
• I recently began using farm raised Tilapia
  fillets. I buy these in individual vacuum
  sealed packages in one pound bags at Wal-Mart.
  My husband has diabetes and we both are very
  weight conscious. This fish is the perfect food
  item for us, I love the way it is packaged, just
  use what I need for one meal. It is reasonably
  priced, always available in the market and
  consistently high quality.
• I LOVE THE PRODUCT!!!!
• Marian Birnie Aug. 12, 2001

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New recipes
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New recipes
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Sashimi
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Fried tilapia skins
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International/US Supply and Demand TRENDS

• Supply of fillets primarily from China, Southeast
  Asia, Ecuador and Central America.
• Demand for live fish needs to expand beyond Asian
  markets
• With rapid increases in supply, demand must
  increase at least as fast to support price.

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Major Tilapia Producers in International Trade

• China - whole frozen, IQF fillets
• Ecuador - fresh fillets
• Taiwan - whole, IQF, sashimi
• South Central America - fresh fillets
• Indonesia - IQF fillets
• Thailand - IQF fillets

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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.

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Changes and Predictions

• Further intensification in virtually every country

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Changes and Predictions

• US production will increase slowly, intensifying
  current production methods

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Changes and Predictions

• Production will be 75 Oreochromis niloticus, 20
  Red strains, O. aureus and O. mossambicus mostly
  for hybridization

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Changes and Predictions

• Production will be 50 intensive ponds, 30
  cages, 10 intensive recirculating and tank
  systems, 10 other

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Changes and Predictions

• Leather goods from skin will become a significant
  contributor to profitability

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Changes and Predictions

• Processing and "value-adding" will intensify in
  producing countries

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Changes and Predictions

• Polyculture with shrimp will become common in
  most shrimp farming areas (already practiced in
  Thailand, Philippines, Mexico, US, Ecuador, Peru,
  Eritrea)

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Tilapia - shrimp polyculture
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Floating cage
Hapa (net pen)
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Changes and Predictions

• World tilapia production (1,265,780 mt in 2000,
  FAO) will reach 1,500,000 mt in 2003 and
  2,000,000 mt by 2010
• 2003 sales over 2 billion
• 2010 sales over 4 billion

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Thank you!!

• Questions?
• Preguntas?

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Carbon monoxide

• Most plants appear to use carbon monoxide
• Some gas in chambers others infuse in bags before
  freezing

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Estimated cost of production

• China - 0.70/kg
• Philippines, Indonesia - 0.80/kg
• Brazil, Ecuador, Thailand - 0.85/kg
• Honduras, Costa Rica - 0.90/kg
• Mexico - 1.00/kg
• Taiwan Province - 1.05/kg
• US - 2.00/kg
• Canada - 2.10/kg