World Tilapia Markets in 2001

Kevin Fitzsimmons, Ph.D.

Professor - University of ArizonaSec. / Tres. - American Tilapia Association

President - US. Aquaculture Soc. Chapter of WAS

October 2001

Introduction

Review worldwide tilapia productionAdvances in production technologiesExamine production costsExamine current tilapia markets Discuss problems of supply and demandOpportunities to expand markets

Tilapia introductions around the world

Oreochromis mossambicus first to be widely distributed in 1930’s and 1940’s.

To United States in 1954 Oreochromis aureus introduced in 1950’s and

1960’s. Oreochromis niloticus introduced in 1970’s Red strains developed in 1970’s and 80’s Oreochromis niloticus spreads in 1990’s Total production of 900,000 mt in 2000

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, carpHerbivorous and /or omnivorousGood growth in fertilized pondsMany agricultural by-products can be

used in tilapia feeds or to fertilize ponds

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

Red strain of tilapia

Established market demand

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

frozen, smoked, sashimi

Problem (opportunity) 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

MethyltestosteroneGenetically male tilapiaAll male hybridsHigh density cultureO. niloticus with larger females

Advances and Solutions: Off-flavors

Depuration systemsControl of blue-green algaeProduction in systems with limited

access to benthic algae (cages, recirculating, indoors)

Major Tilapia Producers (estimate for year 2000)

China - 450,000 metric tons / yearMexico - 102,000 mt / yearPhilippines - 90,000 mt / yearTaiwan Province - 90,000 mt / yearIndonesia - 50,000 mt / yearBrazil - 45,000 mt / yearThailand - 40,000 mt / year

Major Tilapia Producers in the Americas (for year 2000)

Mexico - 102,000 metric tons/yearBrazil - 45,000 mt / yearCuba - 39,000 mt / yearColombia - 23,000 mt / yearEcuador - 15,000 mt / yearCosta Rica - 10,000 mt / yearUSA - 8,200 mt / year Honduras - 5,000 mt / year

Major Tilapia Producers in International Trade

China - whole frozen, IQF filletsPhilippines - fresh (all domestic)Taiwan - whole & IQF, sashimiMexico - fresh (all domestic)Indonesia - 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

Typical prices for Tilapia products sold in the U.S. (October 2001.)

Pond-side/Processor

$/kg

Wholesale$/kg

Retail$/kg

Whole live fish 2.20 - 6.60 2.80 - 7.50 4.00 - 10.00Whole frozenfish

1.10 - 2.00 2.00 - 2.35 2.20 - 5.00

Whole freshfish

2.30 - 3.00 3.00 - 4.00 4.00 - 9.00

Fillets, fresh 5.00 - 7.00 6.00 - 8.00 8.00 - 12.00Fillets, frozen 4.80 - 6.75 5.50 - 7.80 7.00 - 11.50

Species produced

Shrimp, trout, tilapia, catfish, grass carp and many other species can be grown in irrigation water.

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

Supply and DemandSupply primarily from tropical

countries Demand is in producer countries and

USWith rapid increases in supply,

demand must increase at least as fast to support price.

Production of Tilapia in the Americas 2000 (by volume)

ECUADOR6%

MEXICO40%HONDURAS

2%

BRAZIL17%

COSTA RICA4%CUBA

15%

US3%

OTHERS1%

JAMAICA3%

COLOMBIA9%

Major Tilapia Products in International Trade

Costa Rica - fresh filletsEcuador - fresh and frozen filletsHonduras and Jamaica - fresh and

frozen filletsMexico, Brazil, Colombia, Cuba USA -

strong domestic demands, minimal exports

Estimated cost of production

Brazil, Ecuador, Cuba - $1.10 / kgCosta Rica, Jamaica - $1.20 / kgColombia, Mexico - $1.25 / kgUSA - $2.00 / kgCanada - $2.10 / kg

International markets

Costa Rica was first major exporterEcuador is now major exporter from the

Americas 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 production

Colombia and Mexico were exporters to US, but exports levels decreased while production increased

Tilapia production and Markets in Mexico

Production in most states of MexicoIntensive in north, lake ranching in

southStrong domestic markets; on ice, fillets

in grocery storesWill eventually develop export

markets.

Tilapia production & Markets in Brasil

Production in Southeast and NortheastRed tilapia in Southeast for fee-fishing

and foodCage farms allowed in NE reservoirs.Tilapia leather industryJump in interest with ISTA 5 in Rio.Will eventually develop export markets.

Tilapia production in Ecuador

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 EcuadorTILAPIA PRODUCTION IN ECUADOR

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Year

Pro

du

ctio

n (

mt)

US Tilapia consumption (mt)

0100002000030000400005000060000700008000090000

100000

Met

ric

tons

1986

1988

1990

1992

1994

1996

1998

2000

Source of US Tilapia supply 2000 (by volume)

2000 US Tilapia Supply

OTHER4%

CHINA24%

JAMAICA1%

COSTA RICA10%

ECUADOR13%

INDONESIA3%

TAIWAN28%

HONDURAS5%

US12%

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

Value of tilapia products imported to U.S.

Figure 2. Value of Tilapia product forms imported to the U.S.

Fillet Fresh

Fillet Frozen

Whole Frozen

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

$100,000,000

1992 1993 1994 1995 1996 1997 1998 1999 2000

$ U

S

Whole Frozen

Fillet Frozen

Fillet Fresh

Tilapia Production in the US = Live Sales

www.tilapia.org

Internet Tilapia Market sites

Internet Tilapia Market sites

International market changes

Increasing domestic consumption in producing countries especially Colombia, Brazil, Mexico, Costa Rica

Colombia starting to export again, Mexico and Brazil will follow

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

Latin America and Southeast Asia will be primary US suppliers

Latin America, Caribbean and Africa will supply EU

Marketing - Push vs. Pull

Push = get distributors to take more product

Pull = get consumers to demand more product

Push = often more expenses with product, price and profit lower

Pull = advertising, higher prices and profits

Marketing - Push

Lower priceAdvertise in business magazineValue adding to productBetter packaging

Marketing - Pull

Advertise to consumerAdvertise in general interest magazineProduct placementValue adding to productBetter packagingTestimonials

Dear Kevin, I have recently began using Tilapia fillets farm raised by

Sea Best and distributed by Beaver Street Fisheries, Inc. I buy these in individual vacuum sealed packages in one pound bags at Wal-Mart in San Marcos, Texas. 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 trust you will forward these comments to the producer.

I LOVE THE PRODUCT!!!! Marian Birnie Aug. 12, 2001

Packaging and Delivery

New product forms -Push and Pull

Smoked tilapia Sashimi grade tilapia

Changes and Predictions

Further intensification in virtually every country

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

Production will be 50% intensive ponds, 25% cages, 10% intensive recirculating systems

Changes and Predictions Further intensification in virtually every country

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

Production will be 50% intensive ponds, 25% cages, 10% intensive recirculating systems

Changes and Predictions Further intensification in virtually every country Production will be 75% Oreochromis niloticus, 20% Red

strains, O. aureus and O. mossambicus mostly for hybridization

Production will be 50% intensive ponds, 25% cages, 10% intensive recirculating systems

Changes and Predictions

Leather goods from skin will become a significant contributor to profitability

Processing and "value-adding" will intensify in producing

countries Polyculture with shrimp will become common in most

shrimp farming areas

Changes and PredictionsProcessing and "value-adding" will

intensify in producing countries

Changes and Predictions US production will increase slowly, intensifying current

production methods

Production in the Americas will reach 500,000 mt by 2010 and 1,000,000 mt by 2020

Conclusions - Marketing tilapia

Increasing demand / markets should begin in producing country

Opening new markets will be required in US Plenty of techniques can be used to build

markets Many are free or low cost (product placement,

samples, live tanks, Web sites) Most effective forms require investment