Tilapia Production and Markets

1
Tilapia Production and Markets

• Kevin Fitzsimmons, Ph.D.
• Professor, University of Arizona
• Vice President, American Tilapia Association
• Past - President, World Aquaculture Society
• London
• November, 2003 updated for Aug 2005

2
Introduction

• Quick review of tilapia
• Explosion in tilapia trade
• The US and EU Markets
• Value added products
• 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

4
(No Transcript)
5
(No Transcript)
6
Major Tilapia Producers (for year 2004)

• China 897,300 metric tons / year
• Egypt 220,000 mt / year
• Indonesia 169,310 mt / year
• Philippines - 122,277 mt / year
• Mexico - 110,000 mt / year
• Thailand - 100,000 mt / year
• Taiwan Province - 90,000 mt / year
• Brasil - 80,000 mt / year

7
Farmed around the world.

• Tilapia production in 100 countries.
• China is worlds largest producer.
• Philippines, Thailand, Indonesia, Latin America,
  Middle East significant producers
• Germany, Belgium, Spain, Canada, Korea, Japan,
  most states in US
• Total production gt2,000,000 mt in 2004

8
Global Tilapia Sales (farmgate)

• For year 2000
• US 1,706,538,200 (FAO Fisheries Circular
  No. 886)
• 2004 sales gt 3,000,000,000

9
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

10
Large cage farms
11
Tilapia-shrimp polyculture farms
12
Ponds and cages
13
Intensive tank culture
Tanks in Arizona
Tanks in California
14
Raceway Systems
Intensive raceways
Extensive raceways
15
Intensive farms in buildings in cool climates
16
Intensive farms with recirculation in greenhouses
17
Integrated with crop irrigation
18
How did tilapia get so popular, so fast?
19
Tilapia - The Perfect Aquaculture Storm
20
Miracle of Loaves and Fishes
21
Tilapia widely popular around the world and
beyond.

• Common names Tilapia, boulti, mojara, chambo,
  lou fei, pla nil, St. Peters fish, 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

22
Established market demand

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

23
Tilapia the Green farmed fish

• Herbivore / omnivore, low trophic level feeder
• Algae, bacteria, and detritus are important food
  sources
• Prepared feeds are mostly grains and ag
  by-products
• Can be reared in high densities, with low water
  exchange
• Disease resistant and tolerant of poor water
  quality. Anti-biotics and chemicals are rarely
  used.

24
The environmental fish

• Promoted by aid agencies and NGOs
• Dr. M. Gupta wins World Food Prize for promotion
  of tilapia aquaculture, June 10, 2005
• Grown mostly in developing countries
• Often used in integrated farming systems
• Frequently reared in reservoirs and irrigation
  systems with effluents used for irrigation,
  reducing fertilizer applications

25
Genetic improvements in tilapia
(From Mair, G., 2002)
26
Research Development ISTA 7(Veracruz, MEXICO
Sept 6-8, 2006)

• International Symposia on Tilapia in Aquaculture

27
Nutritional quality

• USDA has completed a complete highly technical
  nutritional analysis. Now is preparing
  nutritional report on tilapia for the general
  public
• New USDA Pyramid guidelines further support
  frequent fish consumption

28
Nutritional quality

• Moderate in PUFAs 0.387 g/100g raw
• 0.600 g/100g cooked
• Moderate omega 3 FAs 0.141 g/100g raw
• 0.220 g/100g cooked
• Source USDA- ARS Lab
• Low in mercury Tilapia 0.01 ppm (or
  non-detect)
• Shark 0.99 ppm
• Source FDA
• http//www.cfsan.fda.gov/frf/sea-mehg.html

29
US market development

• The LAND opens at EPCOT in 1983 features
  tilapia culture and on menu in the Good Turn
  Restaurant
• Farms in ID, CA, FL AZ begin sales to Asian
  stores and restaurants
• Farms in Colombia, Costa Rica, Jamaica Taiwan,
  and Indonesia begin imports

30
Top Ten Seafoods (U.S.)per capita (lbs)
31
US Tilapia consumption412,148,000 lbs (187,000
mt) of live weight-2003504,716,000 lbs (229,000
mt) of live weight-2004
32
19,480 mt fresh fillets, 36,160 mt frozen
fillets, 57,2990 mt whole frozen (2004)
33
174,215,165 (2002) 241,205,610 (2003)
297,413,000 (2004) 352,305,388 (est 2005)
34
176,152,694 imports Jan-June 2005

• 2005 Imports should be gt 352,305,388

35
US Sales of tilapia

• Imports in 2004 were 297,413,261
• US production of 40,000,000 at farm
• 2004 Total US tilapia sales were over
  337,000,000
• 2005 Sales estimate
• 176,152,694 (Jan-June imports)
  2352,305,388 40,000,000 392,000,000

36
Tilapia (May 25, 2005 Madrid Daily)

• Europe is following US trend of adopting tilapia
  as replacement for traditional fishes

37
Major tilapia market segments US vs.
EU

• Live fish (supplied by US growers)
• Fresh fillets (supplied by Ecuador, Honduras,
  Costa Rica and Panama)
• Frozen fillets (supplied by China, Indonesia)
• Sashimi grades (supplied by Taiwan)

• Live fish (supplied by EU growers)
• Fresh fillets (supplied by Jamaica, Ecuador, and
  Zimbabwe)
• Frozen fillets (supplied by China, Indonesia)
• Sashimi grades (supplied by Taiwan)

38
Major fillet buyers (US)

• Major restaurant chains (Darden Red Lobster, TGI
  Fridays, Landrys, Joes CrabShack, Ruby
  Tuesday.)
• Major grocery chains (Safeway, Kroger,
  Winn-Dixie, Wegmans)
• Food service (supply small restaurant grocery
  chains) - SYSCO, Fleming Co., Shamrock
• Brokers - most based in Miami, Tampa, Houston,
  Los Angeles, San Francisco, New York, Seattle

39
Major fillet buyers (EU)

• Major grocery chains (TESCO, Marks Spencer,
  INTERMARCHE, Carrefour)
• Food service (supply small restaurant grocery
  chains) - Youngs
• Brokers Iceland.co
• Brands BirdsEye, Movenpick, iglo

40
Consumer evolution

• Ethnic buyers (Asian - African)
• Up-scale restaurants
• Casual dining
• Hyper and super markets
• Local groceries

41
Expanding markets in the EU

• Quality control and assurance
• Advertising
• Product placement
• Endorsements
• New recipes
• Substitute for snapper, bass, flounder
• New value added product forms

42
Quality control and assurance

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

43
Improvedprocessingplants
44
IQF Fillets in re-sealable packages
45
Tilapia Market Trends

• Prices have been constant or trending down for
  several years, will not increase with inflation

/kg
46
Breaded tilapia products
47
Smoked products
48
Advertising
49
Direct retail sales
50
Product placement

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

51
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

52
New recipes
53
New recipes
54
By-products

• Leather goods from skin will become a significant
  contributor to profitability
• Pharmaceuticals from skins
• Formed fish products
• Fertilizer
• Fish meal

55
Flowers made from Tilapia scales
56
Typical prices for Tilapia products sold in the
U.S. (August 2005.)
57
Fresh tilapia fillet products

• Size (under 3 oz, lt 85 g) 3-5 oz, 85 -
  140 g 4-6 oz, 110 - 170 g 5-7 oz,
  140 - 195 g over 7 oz, gt 195 g
• Skin on, shallow skin or deep skin
• Individual wrap, 2 or 5 kg package, master pack

58
Fresh tilapia fillet product pricesFOB Miami

• Size (under 3 oz, lt 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, gt 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

59
Mexico - 110,000 mt
Tilapia-shrimp farm in Sonora
Pond Tilapia farm in Tamaulipas
60
Markets in Mexico
Raceway system, Tamaulipas

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

61
Brasil - 80,000 mt
62
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.

63
Tilapia production in Ecuador 35,000 mt

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

64
Tilapia production in Ecuador and shrimp viral
infections
White Spot
IHHN
Taura
65
Red strains of tilapia most popular for brackish
polyculture systems
66

• Tilapia production in outside ponds with shrimp
  in covered ponds

67
Costa Rica - 15,000 mt
Acuacorporacion ponds in Cañas, Costa Rica
68
Jamaica - 5,200 mtTilapia production 1980-2001
69
USA ? 9,000 mt

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

70
US Tilapia Aquaculture

• 9,200 mt per year (20,000,000 lbs)
• California is largest producer
• ID, NC, FL, TX, AZ, NY,PA, MA are also
  significant producers
• Virtually all tilapia in US for live sales
• Asian groceries and restaurants are primary
  market outlets

71
EU / US Supply and Demand TRENDS

• Supply of fillets primarily from China, Southeast
  Asia, South 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.

72
Major Tilapia Producers in International Trade

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

73
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

74
Changes and Predictions

• Further intensification in virtually every country

75
Changes and Predictions

• EU / US production will increase slowly,
  intensifying current production methods

76
Changes and Predictions

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

77
Tilapia - shrimp polyculture
78
Floating cage
Hapa (net pen)
79
Changes and Predictions

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

80
Changes and Predictions

• Production will be 50 intensive ponds, 35
  cages, 10 intensive recirculating and tank
  systems, 5 other

81
Predictions for Value-added products

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

82
Sashimi
83
Fried tilapia skins
84
Future global tilapia production
85
Thank-you !

• Questions?

86
Production of Tilapia in the Americas 2002 (by
volume)
87
Tilapia production in the Americas
88
Strain evaluations

• For saline waters - Hybrid red strains are
  preferred
• For cage and pond culture Chitralada strain of O.
  niloticus originally from Thailand and further
  developed in Brasil.
• The GIFT strain of O. niloticus, originally
  developed in Philippines is most common in
  Philippines and China
• YY Super males - Genetically Male Tilapia

89
Estimated cost of production

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

90
US. Tilapia imports 1993-2002
91
www.tilapia.org