1. Strategies of Access to US Markets for Tilapia Kevin Fitzsimmons, Ph.D. University of Arizona Tucson, Arizona, USA & Vice President, American Tilapia Association President Elect, US. Chapter of World Aquaculture Soc.

2. Introduction Tilapia first imported in 1950’s Aquaria and zoos Weed control and baitfish First aquaculture in late 60’s and early 70’s Many biologists learned through Peace Corps Early farms in geothermal areas in West, Florida and Alabama

3. Harvesting from geothermal ponds in California

4. Early Markets For stocking golf course ponds and irrigation systems Oriental stores and restaurants, live fish Live hauling to San Francisco, New York, San Diego, Toronto, Vancouver

5. Introduction Tilapia is still a “new “ product in US markets. Tilapia will be one of the big four seafood products in the 21st Century (salmon, shrimp, catfish and tilapia)

6. Current Status Live production from domestic producers, processed from imports Recirculating systems and geothermal waters. Established market demand. Popular in several product forms.

7. Source of US Tilapia supply 2000 (by volume)

8. US. Tilapia imports 1993-2000

9. Tilapia imports to US (1992-2000)

10. Value of Tilapia imports (1992-2000)

11. Typical prices for Tilapia products sold in the U.S. (November 2000.)

12. Established US market demand Now available in most regions Available in many forms Live, Whole, fillets, fresh and frozen, smoked, sashimi

13. Middle Level Marketing White tablecloth restaurants Specialty seafood stores Live tanks at seafood counters Develop additional ethnic markets

14. Current Trends of US Tilapia Markets US growers will concentrate on live sales and highly processed forms Increasing demand for all forms of tilapia, but greatest for fresh fillets Prices have been constant for several years, may decrease slightly Southeast Asia and Latin America will be primary suppliers

15. Current Trends Increase in demand for all forms of tilapia Demand increase will be greatest for fresh fillets New markets need to be developed Further value added forms; smoked, marinated, microwave ready

16. Tilapia Marketing Institute Formed in 1998, hired marketing firm to develop generic market campaign Funds provided by Latin American, one Asian producer and their US marketers Recently added first US producer Goal is to increase recognition and demand for all forms of tilapia

17. Problem areas in US markets for Tilapia Small fillet size from some producers Off-flavors Inconsistent supply Inconsistent quality Need more customer recognition

18. Marketing Solutions: Quality control programs Generic and brand advertising Tilapia Marketing Institute Local marketing efforts

19. Current Trends for US Tilapia Markets US (and EU) growers will concentrate on live sales and highly processed forms Southeast Asia and Latin America will be primary US suppliers Africa, Latin America and Caribbean will supply EU

20. International suppliers to US China has taken a large % of Taiwan share China is expanding production Honduras and Ecuador have rapid expansion of exports Colombia, Costa Rica, Brazil and Mexico may increase exports Cuba could be major exporter if trade embargo ends

21. International suppliers to US Ecuador has passed Costa Rica as supplier of fillets to US, by integrating with shrimp production Colombia, Thailand and Mexico were exporters to US, but exports levels decreased while production increased Philippines is big producer, some exports to Japan, currently no exports to US, but great interest

22. US tilapia marketing goals Increase domestic demand Increase value added forms (breaded, marinated, ready to microwave) Maintain environmental awareness Market tilapia as ecologically efficient and sustainable

23. Access to US markets Seafood restaurants, especially chains (Red Lobster, Landry’s) Most grocery stores Competing with catfish, trout, salmon, sole, flounder and other marine species Compete with chicken, beef, pork

24. Recommendations to enter US tilapia market Joint venture with existing marketing entity If solo, try to co-market with other products Avoid traditional seafood importing and brokers (they will not spend any money to develop markets) Develop value added products (fillets, breaded forms, sashimi, etc.)

25. Recommendations to enter US tilapia market (cont) Find marketing partner (seafood chain, large grocery chain, wholesale stores, food service supplier) SYSCO and SHAMROCK Be willing to donate samples Be prepared to spend money for advertising and market development

26. Internet Auction sites Inexpensive way to start Still need lots of infrastructure (storage, shipping, finances, etc) Intermediary costs

27. Internet Tilapia Market sites

29. www.tilapia.org