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 tilapia Explosion in tilapia trade The US and EU Markets Value added products Opportunities to expand markets

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

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

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 2000 US $ 1,706,538,200 (FAO Fisheries Circular No. 886) 2004 sales >$ 3,000,000,000

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

Large cage farms

Tilapia-shrimp polyculture farms

Ponds and cages

Intensive tank culture Tanks in Arizona Tanks in California

Intensive raceways Raceway Systems 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 demand Accepted in many national dishes Popular 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)

US Tilapia consumption 412,148,000 lbs (187,000 mt) of live weight-2003 504,716,000 lbs (229,000 mt) of live weight-2004

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

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

$176,152,694 imports Jan-June 2005 2005 Imports should be > $ 352,305,388

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) *2= $352,305,388 + $40,000,000 = $392,000,000

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) - Youngs Brokers –Iceland.co Brands – BirdsEye, Movenpick, iglo

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

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

Quality control and assurance National standards ISO and HACCP (Hazard Analysis at Critical Control Points) Industry standards Buyer standards Other (NGO’s)

Improved processing plants

IQF Fillets in re-sealable packages

Tilapia Market Trends $/kg Prices have been constant or trending down for several years, will not increase with inflation $/kg

Breaded tilapia products

Smoked products

Advertising

Direct retail sales

Product placement “Saving Faith” Murder mystery Detective fixes elegant tilapia dinner to seduce the beautiful blonde.

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

New recipes

New recipes

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

Flowers made from Tilapia scales

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

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 prices FOB Miami Size (under 3 oz, < 85 g) $2.80 - 3.00/lb 3-5 oz, 85 - 140 g $3.00 - 3.10/lb 4-6 oz, 110 - 170 g $3.10 - 3.25/lb 5-7 oz, 140 - 195 g $3.15 - 3.40/lb over 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 mt Tilapia-shrimp farm in Sonora Pond Tilapia farm in Tamaulipas

Markets in Mexico Raceway system, Tamaulipas Strong domestic markets; on ice, fillets in grocery stores All domestic consumption - Will eventually develop export markets.

Brasil - 80,000 mt

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.

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

Tilapia production in Ecuador and shrimp viral infections White Spot IHHN Taura

Red strains of tilapia most popular for brackish polyculture systems

Tilapia production in outside ponds with shrimp in covered ponds

Costa Rica - 15,000 mt Acuacorporacion ponds in Cañas, Costa Rica

Jamaica - 5,200 mt Tilapia production 1980-2001

USA  9,000 mt Production in most states Mostly intensive systems, many recirculating Sales 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 fillets Ecuador - fresh fillets Taiwan - whole, IQF, sashimi South & Central America - fresh fillets Zimbabwe - Fresh fillets Indonesia - IQF fillets Thailand - 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 Predictions Polyculture 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

Thank-you ! Questions?

Production of Tilapia in the Americas 2002 (by volume)

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 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

US. Tilapia imports 1993-2002

www.tilapia.org