International Production and Markets for Tilapia Kevin Fitzsimmons University of Arizona American Tilapia Association Salvador, BRAZIL May 20, 2003

Introduction F Review worldwide tilapia trade F Suppliers and consumers in the Americas F Opportunities to expand markets

Tilapia trade F Currently third in volume to carps & salmonids F Prediction: Tilapia will become most important aquaculture crop in this century F Widest demand, no religious/cultural concerns, few environmental concerns F More genetic potential F Greatest variety of production systems

Established market demand F Accepted in many national dishes F Popular in many forms (live, whole, fillets, fresh and frozen, smoked, sashimi, fried skins)

Ponds and cages

Intensive tank culture Tanks in Arizona Tanks in California

Raceway Systems Intensive raceways Extensive raceways

Intensive farms in buildings in cool climates

Intensive farms with recirculation in greenhouses

Integrated with crop irrigation

Genetic improvements in tilapia (From: Mair, G., 2002)

International Research ISTA (next in Manila, Philippines, Sept 2004) F International Symposia on Tilapia in Aquaculture

Major Tilapia Producers (for year 2002) F China - 706,000 metric tons / year F Mexico - 102,000 mt / year F Thailand - 100,000 mt / year F Philippines - 92,284 mt / year F Taiwan Province - 85,000 mt / year F Brazil - 75,000 mt / year F Indonesia - 50,000 mt / year

Global Tilapia Sales (farmgate) F For year 2000 F US $ 1,706,538,200 (FAO Fisheries Circular No. 886)

Tilapia production in the Americas

Production of Tilapia in the Americas 2002 (by volume)

US Tilapia consumption ( 133,140 mt of live weight)

US. Tilapia imports

$ 174,215,165 ( 2002)

F 2003 Imports should be > $224,000,000 $56,083,527 imports Jan-Mar 2003

F $705,000,000 imports in last 10 years F 2003 Imports should be > $224,000,000 F US production of $30,000,000 at farm F US tilapia sales (imports and domestic) exceed one billion $$$ F 2003 sales will be $250,000,000 US Consumption of tilapia

Typical prices for Tilapia products sold in the U.S. (May 2003.)

Mexico - 102,000 mt Tilapia-shrimp farm in Sonora Pond Tilapia farm in Tamaulipas

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

Brazil - 75,000 mt

Tilapia production & Markets in Brasil F Production in Southeast and Northeast F Red tilapia in Southeast for fee-fishing and food F Cage farms allowed in NE reservoirs. F Tilapia leather industry F Jump in interest with ISTA 5 in Rio. F Developing export markets.

Tilapia production in Ecuador F Replacing shrimp because of white spot and other shrimp diseases F Using shrimp infrastructure F Exporting to US and EU F Benefits to shrimp culture with polyculture

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

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

USA 9,000 mt F Production in many states F Mostly intensive systems, many recirculating F Sales to ethnic markets as live fish, high value

Expanding markets F Quality control and assurance F Advertising F Product placement F Endorsements F New recipes and product forms

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

Advertising

Direct retail sales

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

F Dear Kevin, F 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. F I LOVE THE PRODUCT!!!! F Marian Birnie Aug. 12, 2001 Endorsements

New recipes

Sashimi

Fried tilapia skins

International/US Supply and Demand TRENDS F Supply of fillets primarily from China, Southeast Asia, Ecuador and Central America. F Demand for live fish needs to expand beyond Asian markets F With rapid increases in supply, demand must increase at least as fast to support price.

Major Tilapia Producers in International Trade F China - whole frozen, IQF fillets F Ecuador - fresh fillets F Taiwan - whole, IQF, sashimi F South & Central America - fresh fillets F Indonesia - IQF fillets F Thailand - IQF fillets

Current International Market Trends F Increase in demand for all forms of tilapia F Demand increase will be greatest for fresh fillets F Prices have been constant for several years and will remain stable, will not increase with inflation.

Changes and Predictions F Further intensification in virtually every country

Changes and Predictions F US production will increase slowly, intensifying current production methods

Changes and Predictions F Production will be 75% Oreochromis niloticus, 20% Red strains, O. aureus and O. mossambicus mostly for hybridization

Changes and Predictions F Production will be 50% intensive ponds, 30% cages, 10% intensive recirculating and tank systems, 10 % other

Changes and Predictions F Leather goods from skin will become a significant contributor to profitability

Changes and Predictions F Processing and "value-adding" will intensify in producing countries

Changes and Predictions F 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 F World tilapia production (1,265,780 mt in 2000, FAO) will reach 1,500,000 mt in 2003 and 2,000,000 mt by 2010 F 2003 sales over $2 billion F 2010 sales over $4 billion

Thank you!! F Questions? F ¿Preguntas?

Carbon monoxide F Most plants appear to use carbon monoxide F Some gas in chambers others infuse in bags before freezing

Estimated cost of production F China - $0.70/kg F Philippines, Indonesia - $0.80/kg F Brazil, Ecuador, Thailand - $0.85/kg F Honduras, Costa Rica - $0.90/kg F Mexico - $1.00/kg F Taiwan Province - $1.05/kg F US - $2.00/kg F Canada - $2.10/kg