tilapia production and markets kevin fitzsimmons, ph.d. professor, university of arizona vice...

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

Introduction

Quick review of tilapiaExplosion in tilapia tradeThe US and EU MarketsValue added productsOpportunities to expand markets

Tilapia productionCurrently second in volume to carpsPrediction: Tilapia will become most

important aquaculture crop in this centuryWidest demand, no religious/cultural

concerns, few environmental concernsMore genetic potentialGreatest variety of production systems

World Tilapia Production of 2,007,087 mt in 2004

China45%

Egypt11%

Philippines6%

Mexico6%

Thailand5%

Honduras1%

Indonesia9%

Colombia2%

Vietnam1%Ecuador

2%Cuba2%

Taiwan5%

Costa Rica1%

Brasil4%

World Tilapia Production of 2,007,087 mt in 2004

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Major Tilapia Producers (for year 2004)

China – 897,300 metric tons / yearEgypt – 220,000 mt / year Indonesia – 169,310 mt / yearPhilippines - 122,277 mt / yearMexico - 110,000 mt / yearThailand - 100,000 mt / yearTaiwan Province - 90,000 mt / yearBrasil - 80,000 mt / year

Farmed around the world. Tilapia production in 100+ countries. China is world’s largest producer. Philippines, Thailand, Indonesia, Latin

America, Middle East significant producers Germany, Belgium, Spain, Canada, Korea,

Japan, most states in US Total production >2,000,000 mt in 2004

Global Tilapia Sales (farmgate)

For year 2000US $ 1,706,538,200

(FAO Fisheries Circular No. 886)

2004 sales >$ 3,000,000,000

Tilapia - the aquatic chicken

Grows in all kinds of farmsEats all kinds of foodLarge eggs and easy to rear youngLots of ways to prepare the fish

Large cage farms

Tilapia-shrimp polyculture farms

Ponds and cages

Intensive tank culture

Tanks in Arizona

Tanks in California

Raceway SystemsIntensive raceways

Extensive raceways

Intensive farms in buildings in cool climates

Intensive farms with recirculation in greenhouses

Integrated with crop irrigation

How did tilapia get so popular, so fast?

Tilapia - The Perfect Aquaculture Storm

Miracle of Loaves and Fishes

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

Established market demandAccepted in many national dishesPopular in many forms (live,

whole, fillets, fresh and frozen, smoked, sashimi, fried skins)

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.

The “environmental” fish

Promoted by aid agencies and NGO’s 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

Genetic improvements in tilapia

(From: Mair, G., 2002)

Research & Development ISTA 7

(Veracruz, MEXICO Sept 6-8, 2006) International Symposia on Tilapia in Aquaculture

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

Nutritional quality Moderate in PUFA’s: 0.387 g/100g raw

0.600 g/100g cooked Moderate omega 3 FA’s: 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

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

Top Ten Seafoods (U.S.)per capita (lbs)

2000 2001 2002 2003 2004 (est)Tuna 3.5 Shrimp 3.4 Shrimp 3.7Shrimp 4.0 Shrimp 4.0Shrimp 3.2 Tuna 2.9 Tuna 3.1Tuna 3.4 Tuna 3.4Pollock 1.6 Salmon 2.0 Salmon 2.0 Salmon 2.2 Salmon 2.2Salmon 1.5 Pollock 1.2 Pollock 1.1 Pollock 1.7 Pollock 1.7Catfish 1.1 Catfish 1.1 Catfish 1.1Catfish 1.1 Catfish 1.1Cod 0.8 Cod 0.6 Cod 0.7 Cod 0.6 Tilapia 0.7Clams 0.5 Clams 0.5 Crabs 0.6 Crabs 0.6 Cod 0.6Crabs 0.4 Crabs 0.4 Clams 0.5Tilapia 0.54 Crabs 0.6Flatfish 0.4 Flatfish 0.4 Tilapia 0.4Clams 0.5 Clams 0.5Scallops 0.3 Tilapia 0.35 Flatfish 0.3 Scallops 0.3 Scallops 0.3Tilapia 0.28

US Tilapia consumption412,148,000 lbs (187,000 mt) of live weight-2003504,716,000 lbs (229,000 mt) of live weight-2004

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Tilapia product forms imported to the U.S.

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Whole Frozen

Fillet Frozen

Fillet Fresh

19,480 mt fresh fillets, 36,160 mt frozen fillets, 57,2990 mt whole frozen (2004)

Value of Tilapia product forms imported to the U.S. 2002

Fillet Fresh

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

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$174,215,165 (2002) $241,205,610 (2003) $297,413,000 (2004) $ 352,305,388 (est 2005)

2005 Imports should be > $ 352,305,388

$176,152,694 imports Jan-June 2005

$0$50,000,000

$100,000,000$150,000,000$200,000,000$250,000,000$300,000,000$350,000,000$400,000,000

Jan-June2005

2005 (est)

WholeFrozen FilletFresh FilletTOTAL

Imports in 2004 were $297,413,261 US production of $40,000,000 at farm2004 Total US tilapia sales were over

$337,000,0002005 Sales estimate –

$176,152,694 (Jan-June imports) *2=$352,305,388 + $40,000,000 = $392,000,000

US Sales of tilapia

Tilapia (May 25, 2005 Madrid Daily)

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

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)

Major fillet buyers (US)Major restaurant chains (Darden Red Lobster, TGI Fridays,

Landry’s, Joe’s 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

Major fillet buyers (EU)Major grocery chains (TESCO, Marks &

Spencer, INTERMARCHE, Carrefour)Food service (supply small restaurant &

grocery chains) - YoungsBrokers –Iceland.coBrands – BirdsEye, Movenpick, iglo

Consumer evolution

Ethnic buyers (Asian - African)Up-scale restaurantsCasual diningHyper and super marketsLocal groceries

Expanding markets in the EUQuality control and assuranceAdvertisingProduct placementEndorsementsNew recipesSubstitute for snapper, bass, flounderNew value added product forms

Quality control and assuranceNational standardsISO and HACCP (Hazard Analysis at

Critical Control Points)

Industry standardsBuyer standardsOther (NGO’s)

Improvedprocessing

plants

IQF Fillets in re-sealable

packages

Tilapia Market TrendsPrices have been constant or trending down for several years,

will not increase with inflation

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Breaded tilapia products

Smoked products

Advertising

Direct retail sales

Product placement

“Saving Faith” Murder mysteryDetective fixes elegant tilapia

dinner to seduce the beautiful blonde.

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

Endorsements

New recipes

New recipes

By-productsLeather goods from skin will become a

significant contributor to profitabilityPharmaceuticals from skinsFormed fish productsFertilizerFish meal

Flowers made from Tilapia scales

Typical prices for Tilapia products sold in the U.S. (August 2005.)

Pond-

side/Processor $/kg

Wholesale $/kg

Retail $/kg

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

1.10 - 2.00 2.00 - 2.35 2.20 - 5.00

Whole fresh fish

2.30 - 3.00 3.00 - 4.00 4.00 - 9.00

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

Fresh tilapia fillet products

Size (under 3 oz, < 85 g) 3-5 oz, 85 - 140 g 4-6 oz, 110 - 170 g 5-7 oz, 140 - 195 g over 7 oz, > 195 g

Skin on, shallow skin or deep skin Individual wrap, 2 or 5 kg package, master pack

Fresh tilapia fillet product pricesFOB Miami

Size (under 3 oz, < 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, > 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

Mexico - 110,000 mtTilapia-shrimp farm in Sonora

Pond Tilapia farm in Tamaulipas

Markets in Mexico

Strong domestic markets; on ice, fillets in grocery stores

All domestic consumption - Will eventually develop export markets.

Raceway system, Tamaulipas

Brasil - 80,000 mt

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.Developing export markets.

Tilapia production in Ecuador 35,000 mt

Replacing shrimp because of white spot and other shrimp diseases

Using shrimp infrastructureExporting to US and EUBenefits to shrimp culture with

polyculture

Tilapia production in Ecuador and shrimp viral infections

TILAPIA PRODUCTION IN ECUADOR

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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

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White Spot

Red strains of tilapia most popular for brackish polyculture systems

Tilapia production in outside ponds with shrimp in covered

ponds

Costa Rica - 15,000 mtAcuacorporacion ponds in Cañas, Costa Rica

Jamaica - 5,200 mtTilapia production 1980-2001

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USA 9,000 mt

Production in most statesMostly intensive systems, many

recirculatingSales to ethnic markets as live

fish, high value

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

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.

Major Tilapia Producers in International Trade

China - whole frozen, IQF filletsEcuador - fresh filletsTaiwan - whole, IQF, sashimiSouth & Central America - fresh filletsZimbabwe - Fresh filletsIndonesia - IQF filletsThailand - IQF fillets

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

Changes and Predictions

Further intensification in virtually every country

Changes and Predictions

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

Changes and PredictionsPolyculture with shrimp will

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

Tilapia - shrimp polyculture

Floating cage

Hapa (net pen)

Changes and Predictions

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

Changes and Predictions

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

Predictions for Value-added products

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

Sashimi

Fried tilapia skins

Future global tilapia production

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Thank-you ! Questions?

Production of Tilapia in the Americas 2002 (by volume)

ECUADOR8%

MEXICO35%

HONDURAS4%

BRAZIL23%

COSTA RICA5%

CUBA12%

US3%OTHERS

1%

JAMAICA2%

COLOMBIA7%

Tilapia production in the Americas

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

Estimated cost of productionChina - $0.70/kgPhilippines, Indonesia, Brasil - $0.80/kgThailand, Peru - $0.85/kgEcuador, Honduras, Costa Rica - $0.90/kgMexico - $1.00/kgTaiwan Province - $1.05/kgUS - $2.00/kgCanada - $2.10/kg

US. Tilapia imports 1993-2002Sources of imported tilapia to US

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Taiw an

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