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