Tilapia Marketing in the Americas

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Tilapia Marketing in the Americas

• Kevin Fitzsimmons, Ph.D.
• Professor - University of ArizonaSec. / Tres. -
  American Tilapia Association
• President - US. Aquaculture Soc. Chapter of WAS
• August 2001

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Tilapia introductions to the Americas

• Oreochromis mossambicus first in the Caribbean in
  1949 by C.F. Hickling
• To United States in 1954
• Oreochromis aureus introduced in 1957
• Throughout the Americas by 1970
• Oreochromis niloticus into Brazil 1971
• Red strains developed in 1970s and 80s
• Oreochromis niloticus spreads in 1990s
• Total production of 257,000 mt in 2000

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Production widely distributed around the Americas.

• Tilapia introduced to every country
• Tilapia, mojarra, St. Peters fish, Jamaican
  freshwater snapper, Cherry Snapper
• Used in hundreds of recipes
• Live, Whole, fillets, fresh and frozen, smoked

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Supply and Demand

• Supply primarily from tropical countries
• Demand is in producer countries and US
• With rapid increases in supply, demand must
  increase at least as fast to support price.

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Major Tilapia Producers in the Americas (for year
2000)

• Mexico - 102,000 metric tons/year
• Brazil - 45,000 mt / year
• Cuba - 39,000 mt / year
• Colombia - 23,000 mt / year
• Ecuador - 15,000 mt / year
• Costa Rica - 10,000 mt / year
• USA - 9,072 mt / year
• Honduras - 5,000 mt / year

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Production of Tilapia in the Americas 2000 (by
volume)
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Major Tilapia Products in International Trade

• Costa Rica - fresh fillets
• Ecuador - fresh and frozen fillets
• Honduras and Jamaica - fresh and frozen fillets
• Mexico, Brazil, Colombia, Cuba USA - strong
  domestic demands, minimal exports

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Estimated cost of production

• Brazil, Ecuador, Cuba - 1.10 / kg
• Costa Rica, Jamaica - 1.20 / kg
• Colombia, Mexico - 1.25 / kg
• USA - 2.00 / kg
• Canada - 2.10 / kg

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International markets

• Costa Rica was first major exporter
• Ecuador is now major exporter from the Americas
• Honduras has rapid expansion
• Colombia, Cuba, Brazil and Mexico are supplying
  strong domestic markets
• Prices on international markets will not increase
  from present levels.

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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

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Tilapia production and Markets in Mexico

• Production in most states of Mexico
• Intensive in north, lake ranching in south
• Strong domestic markets on ice, fillets in
  grocery stores
• Will eventually develop export markets.

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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.
• Will eventually develop export markets.

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Tilapia in Colombia

• Before 1980, Colombia had strong domestic market
• Developed export trade to US
• Domestic market has grown so strong that exports
  were suspended
• Colombia imports tilapia from Venezuela and
  Ecuador

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Tilapia aquaculture in Colombia
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Tilapia production in Ecuador

• Replacing shrimp because of white spot disease
• Using shrimp infrastructure
• Exporting to US and EU
• Will they revert to shrimp if disease is
  controlled?

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Tilapia aquaculture in Ecuador
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US Tilapia consumption (mt)
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Source of US Tilapia supply 2000 (by volume)
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US. Tilapia imports 1993-2000
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Value of tilapia products imported to U.S.
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Tilapia Production in the US Live Sales
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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

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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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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

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Marketing - Push vs. Pull

• Push get distributors to take more product
• Pull get consumers to demand more product
• Push often more expenses with product, prices
  and profits lower
• Pull advertising, higher prices and profits

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Marketing - Push

• Lower prices
• Advertise in business magazines
• Add value to product -processing
• Better bulk packaging
• Other sales incentives

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Marketing - Pull

• Advertise to consumer
• Advertise in general interest magazines
• Product placement - movies, TV, books
• Value adding to product
• Better retail packaging
• Point of sale recipe cards promotions
• Testimonials

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Internet Tilapia Market sites
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Internet Tilapia Market sites
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www.tilapia.org
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• Dear Kevin,
• I 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

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Packaging and Delivery
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New product forms -Push and Pull
Smoked tilapia
Sashimi grade tilapia
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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

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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

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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

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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

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Changes and Predictions

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

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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

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