US and Regional Markets for Tilapia

1
US and Regional Markets for Tilapia

• Carlos Pantoja, Ph.D. y
• Kevin Fitzsimmons, Ph.D.Universidad de Arizona
• Managua, NICARAGUA
• Augusto, 2003

2
Introduction

• Review basic production guidelines (stocking
  rates, feeding rates, and protein requirements)
• Worldwide tilapia trade
• The US Market
• Suppliers and consumers in the US
• Opportunities to expand markets

3
Tilapia trade

• 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
Ponds and cages
5
Intensive tank culture
Tanks in Arizona
Tanks in California
6
Raceway Systems
Intensive raceways
Extensive raceways
7
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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Basic production parameters

• Fastest growth between 25 and 29 degrees
• Growth slows with dissolved oxygen below 4 mg/l
  (4 ppm)
• Growth slows with ammonia above 0.25 mg/l
• In ponds, important to check dissolved oxygen
  level before first light in morning
• In cages, even more important to check dissolved
  oxygen during night and early in morning

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Basic feeding parameters

• Crias need highest protein level 45 - 50
• First feeding fry 45 - 50
• 0.02 - 2.0 g 35 - 40
• 2.0 - 35 g 32 - 35
• In hatchery with green water, protein can be
  lower
• In hatchery with very clean water, protein level
  should be maintained

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Basic feeding parameters

• Growout needs lowest protein level 28 - 30
• 35 - 200g 31 - 33 protein
• 200g harvest 28 30 protein
• In pond with green water, protein can be lower
• In cages, even with green water, protein should
  be maintained close to 30

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Genetic improvements in tilapia
(From Mair, G., 2002)
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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

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Expected growth rates
Total days
Fish weight (g)
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Expected growth rate
Fish weight (g)
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International Research ISTA(next in Manila,
Philippines, Sept 2004)

• International Symposia on Tilapia in Aquaculture

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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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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

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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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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

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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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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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Brasil - 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 27,000 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

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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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Nicaragua - 500 mt

• Survey conducted and report by Neira y Engle
• La mayoría de las fincas acuícolas son pequeñas,
  0.01 ha, y son usadas principalmente para
  subsistencia.
• Mercado domestico para tilapia cultivada podría
  reducir riesgo de mercado.
• Nicaragua es un país con gran potencial para el
  desarrollo de la acuicultura.

From Neira y Engle, 2001
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Metodos de entrevistas

• Entrevistas personales directas fueron conducidas
  en las regiones pobladas de Nicaragua en
  Agosto/Septiembre, 2000.

From Neira y Engle, 2001
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Porcentaje de locales que venden tilapia
From Neira y Engle, 2001
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Razones dadas, por las cuales no se vende tilapia
From Neira y Engle, 2001
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Probabilidad de que se venda tilapia cultivada el
siguiente año
From Neira y Engle, 2001
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Formas preferidas de los productos
From Neira y Engle, 2001
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Comparación de los volumenes actuales de venta de
tilapia con respecto al año anterior
From Neira y Engle, 2001
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Consistencia en la oferta de tilapia
From Neira y Engle, 2001
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Problemas mencionados con la inconsistencia en
la oferta de tilapia
From Neira y Engle, 2001
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Tamaño promedio ponderado de tilapia al mayoreo
From Neira y Engle, 2001
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Precio promedio ponderado de tilapia al mayoreo
From Neira y Engle, 2001
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Tilapia
compite con
Entero eviscerado y Filete
Guapote
Pargo rojo
Corvina
From Neira y Engle, 2001
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CONCLUSIONES

• La tilapia silvestre ha penetrado en el mercado.
  
• Principales razones para no vender tilapia sabor
  a tierra, falta de oferta, contaminación del lago
  de Managua, y desconocimiento del producto.
• Actitudes positivas hacia la tilapia tamaño y
  precio no son obstáculos para vender tilapia.

From Neira y Engle, 2001
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...Conclusiones

• Más de la mitad de los encuestados indicaron que
  era muy probable incluir tilapia cultivada.
• El principal obstáculo procedencia del producto
  (Lago de Managua), lo cual resultó en la mayor
  venta de filetes.

From Neira y Engle, 2001
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...Recomendaciones

• Para penetrar en los restaurantes, tilapia
  cultivada debe posicionarse como un producto de
  alta calidad de exportación y dirigirse al
  segmento de restaurantes no corrientes.
• Dada la preferencia por filetes en los
  supermercados y mercados populares, el precio al
  mayoreo probablemente será bajo para que los
  cultivadores de tilapia puedan competir.

From Neira y Engle, 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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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. (July 2003.)
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Major tilapia market segments (US)

• 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)

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Major fresh fillet buyers (US)

• Major restaurant chains (Darden Red Lobster,
  Bahama Breeze, Olive Garden Landry, Landrys,
  Joes CrabShack.)
• 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

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Fresh tilapia fillet products

• Size (under 3 oz, lt 80 g) 3-5 oz, 80 - 135 g
  4-6 oz, 110 - 160 g 5-7 oz, 135 - 190 g over 7
  oz, gt 190 g
• Skin on, shallow skin or deep skin
• Individual wrap, 2 or 5 kg package, master pack

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Fresh tilapia fillet product pricesFOB Miami

• Size (under 3 oz, lt 80 g) 2.80 - 3.00/lb 3-5
  oz, 80 - 135 g 3.00 - 3.10/lb4-6 oz, 110 -
  160 g 3.10 - 3.25/lb5-7 oz, 135 - 190 g
  3.15 - 3.40/lbover 7 oz, gt 190 g 3.35 -
  3.55/lb
• Variation in prices due to skinning, packaging,
  volumes and history with buyer
• Additional variations with terms of payment

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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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Muchas gracias!

• Preguntas?

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Costo total unitario en dos escenarios en
Honduras
From Neira y Engle, 2001