world tilapia markets in 2001 kevin fitzsimmons, ph.d. professor - university of arizona sec. /...
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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