1. Food Safety, Quality Control and Value Added Products to Improve Market Share for Chinese Tilapia Kevin Fitzsimmons, Ph.D. Sec. Tres. American Tilapia Association Past President – World Aquaculture Society Professor, University of Arizona CHINA Asia-Pacific Chapter of WAS 13 November, 2007

2. Overview F Global perspective F US and EU markets for tilapia products F Processing and packaging changes F New products F Demands on farmers F Future trends

3. Tilapia aquaculture F Second most important farmed fish after the carps F Most widely grown of any farmed fish F Asian countries are major producers and consumers

6. Tilapia the “Green” farmed fish F Herbivore / omnivore, low trophic level feeder F Algae, bacteria, and detritus (bioflocs) are important food sources F Prepared feeds are mostly grains and ag by- products F Promoted by aid agencies and NGO’s F Dr. M. Gupta awarded World Food Prize for promotion of tilapia aquaculture, June 10, 2005 F Disease resistant and tolerant of poor water quality. Anti-biotics and chemicals are not needed for commercial farming.

7. Global production of tilapia

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

10. US Tilapia consumption (imports and domestic) 229,000 mt of live weight (equivalent) - 2004 306,410 mt of live weight (equivalent) – 2005 368,295 mt of live weight (equivalent) – 2006

11. US Consumption of tilapia from domestic and imported sources

12. 23,101 mt fresh fillets, 74,381 mt frozen fillets, 60,772 mt whole frozen (2006)

13. $241,205,610 (2003) $297,413,000 (2004) $392,978,298 (2005) $482,742,515 (2006)

14. Tilapia (May 25, 2005 Madrid Daily) F Europe is following US trend of adopting tilapia as replacement for traditional fishes

15. Tilapia ( June 2007, Tesco, UK ) F $18 US per kg whole fish!!!!

16. Begin quality control on the farm F Reduce or eliminate use of drugs and chemicals F Consider alternatives to methyltestosterone F Use high quality feeds, proper ratio of protein, carbohydrates and fat (minimize fatty deposits) F No contaminates in feed F Maintain water quality, avoid polluted water F Control algae blooms and off-flavor

17. Depuration stage F Check fish for off-flavor at the farm F Move to depuration system, good quality water, no feed, clear fish of off-flavor F Depuration system can be on-farm or at processing plant F Check for off-flavor at processing plant F Check for off-flavor at end of processing

18. Transport to processing plant F Best to transport live F May want to add salt to reduce stress and maintain quality

19. ISO 9100 and ISO 22000 F ISO 9100 provides for certification of Hazard Analysis at Critical Control Points F Covers product safety, plant and food hygiene, economic integrity, and product quality. F ISO 22000, food safety management system, applies to all kinds of food processors linked to CODEX Alimentatius

20. HACCP F Hazard Analysis at Critical Control Points F Planning procedure for documenting good production and processing practices F Participants operate under approved plan with audits at random frequency F Focus is on documentation of proper activities at important stages rather than stationing a permanent inspector at farm or processing plant. F Greater focus on critical processing steps. F More cost effective

21. HACCP F Examples: F Document feed source and use, farm water quality, testing for off-flavor F Document source, arrival time, temperature and condition of fish as they arrive at process plant F Provide footbaths, hand washes and protective clothing for processing workers, document usage by having employees sign daily log F Measure and record bacterial numbers on fillets during quality control

22. HACCP F First step is to write the plan F Second step is plan review by authorities F Third step is to train all employees in HACCP plan procedures and documentation F Fourth step is to operate plant according to the approved plan F Fifth step is to maintain paperwork documenting all stages until inspection

23. High quality fresh and frozen fillets F Hand trimming of fillets F Buyers are requesting better trim of margins of fillets for more consistent appearance

24. Many fillets are treated with carbon monoxide (CO, also called liquid smoke) F CO infuses into fillet and reacts with myoglobin F Fillet maintains fresh appearance for longer period

25. Carbon monoxide - CO F Especially common at Chinese processors F Initially CO infusion in bags, then moved to cabinets, now retort vessels

26. Carbon monoxide - CO F Rapidly improving the technique, and providing safety to workers F Must be labeled as an additive in US and EU

27. Demands on farmers and processors F Demand for even more food safety, high quality, “organic” or “green” tilapia products. - Reduce or eliminate use of methyl-testosterone hormone. - No anti-biotics or other chemicals - Reduce environmental impacts - More integrated, re-use water for farming crops - Re-use processing waste products F More value-added tilapia products F More demand for all forms, especially frozen meals F Rapidly increasing demand from Europe

28. Improved quality control: Required for US, EU, and Japan markets F Samples checked for bacterial and chemical contamination F Follow HACCP procedures and EU guidelines F Many plants are using ozone dips to reduce surface bacteria

29. Why did tilapia avoid the restrictions on Chinese farmed seafoods??? F Hardy fish that rarely needs anti-biotics or chemicals F Proactive training of farmers and processors F Importers demanding “clean” product F Consumers expecting “green” fish

30. Meeting buyer specifications F Identify buyers before stocking fish F Have agreements on size, quantity, quality, packaging, shipping, price, and finance terms F Be aware that processor, importer, wholesaler, retailer, and consumer demands are constantly increasing. F Prices do not increase although costs do

31. Gaining NGO certifications F NaturLand F World Wildlife Fund F Aquaculture Certification Council F Each reviewing sustainability of aquaculture practices and providing a certification and marketing logo

32. Improvements in packaging

33. IQF Fillets in re-sealable packages

39. Tilapia Orange Juice

40. Environmental Issues Byproducts - Tilapia Leather

41. Pathways in the use of tilapia as biomanipulator in shrimp farms Promotion of Chlorella dominance Feeding on organic waste Bioturbation of sediment Production of natural antimicrobials IMPROVED SEDIMENT QUALITY IMPROVED WATER QUALITY SUPRESSION OF GROWTH OF V. harveyi

42. Current Global Market Trends F Increase in demand for all forms of tilapia F Demand increase will be greatest for frozen fillets F Demand increase will be significant for fresh fillets F High profit margin for prepared meals assembled and packaged in developing countries

43. Global Tilapia Market Trends Prices have been constant, only fresh fillets have increased slightly, will not see increases with inflation $/kg

44. Global Aquaculture Tilapia Sales F For year 2000 =US $ 1,744,045000 (FAO FishStat 2007) F 2005 sales = $ 2,457,312,000 (FAO FishStat 2007) F 2010 sales >$ 5,000,000,000

45. Future global tilapia aquaculture

46. Conclusions F Need to meet stricter food safety, quality, and environmental criteria F More demands for food safety, quality assurance, improved packaging, and environmental safeguards (with little if any increase in price) F ISO, HACCP and NGO certifications

47. Eighth International Symposium on Tilapia in Aquaculture 12-14 October, 2008 Cairo International Conference Center