1. Markets for African Tilapia Products and Impacts on Local Supplies Kevin Fitzsimmons, Ph.D. Professor, University of Arizona PI – Aquaculture CRSP Vice President, American Tilapia Association President, World Aquaculture Society Washington D.C. April 28, 2004

2. Introduction F Quick review of tilapia F Explosion in tilapia trade F The US and International Markets F Value added products F Opportunities to expand markets

3. Tilapia production F Currently second in volume to carps 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

5. Farmed around the world. F Tilapia production in 100+ countries. F China is world’s largest producer. F Philippines, Thailand, Indonesia, Latin America, Egypt significant producers F Germany, Belgium, Spain, Canada, Korea, Japan, most states in US F Total production >1,500,000 mt in 2003

6. Global Tilapia Sales (farmgate) F For year 2000 F US $ 1,706,538,200 (FAO Fisheries Circular No. 886) F 2003 sales >$ 2,500,000,000

7. Tilapia - the aquatic chicken F Grows in all kinds of farms F Eats all kinds of food F Large eggs and easy to rear young F Lots of ways to prepare the fish

8. Ponds and cages

9. Intensive tank culture Tanks in Arizona Tanks in Eritrea

10. Raceway Systems Intensive raceways Extensive raceways

11. Intensive farms in buildings in cool climates

12. Intensive farms with recirculation in greenhouses

13. Integrated with crop irrigation

14. How did tilapia get so popular, so fast?

15. Tilapia - the Perfect “Aquaculture” Storm

16. Tilapia widely popular around the world and beyond. F Common names: Tilapia, chambo, boulti, lou fei, pla nil, St. Peters fish, mojara, freshwater and/or red snapper F Used in many cuisine, hundreds of recipes, often replaces over-fished local species F Eggs hatched and fry reared on International Space Station

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

18. Environmentally correct F Primarily vegetarian F Most farm systems cause little pollution F Tilapia were long ago established as exotic species, common food fish F Grown mostly in developing countries F Few diseases, essentially no chemicals used

19. Research & Development ISTA 6 (Manila, Philippines, Sept 12 -16, 2004) F International Symposia on Tilapia in Aquaculture

20. Genetic Improvements in Tilapia (From: Mair, G., 2002)

21. The YY male technology (GMT ® )

22. Major Tilapia Producers (for year 2002) F China - 706,000 metric tons / year F Philippines - 122,277 mt / year F Mexico - 110,000 mt / year F Thailand - 100,000 mt / year F Taiwan Province - 90,000 mt / year F Brasil - 75,000 mt / year F Indonesia - 50,000 mt / year

23. Major African Tilapia Producers (for year 2002) F Egypt - 55,000 metric tons / year F Zimbabwe - 5,000 mt / year F Kenya - 2,000 mt / year F Zambia - 1,000 mt / year F South Africa - 1,000 mt / year

24. Commercial tilapia farms in Africa Army Farm near Abassa, Egypt Dominion Group Rice/Tilapia farm near Kisumu, Kenya Lake Harvest on Lake Kariba, Zimbabwe Farmers Co-op on Lake Kariba Zambia

25. Tilapia research centers in Africa Abassa, Egypt Sagana and Eldoret, Kenya Stellenbosch, South Africa Zomba, Malawi Massawa, Eritrea Boake, Cote D’ Ivoire

26. Cages in Egypt 10 m 2 cages near Alexandria

27. SeaWater Farms, Massawa, Eritrea

28. Lake Harvest, Zimbabwe

31. EU Tilapia Supply and Demand F Supply of fillets primarily from China, Southeast Asia, South and Central America. F Demand for live fish in immigrant Asian and African communities F With rapid increases in supply, demand must increase at least as fast to support price.

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

33. US Tilapia consumption - 2003 ( 187,000 mt of live weight = 412,260,000 lbs)

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

35. US. Tilapia imports 1993-2002

36. $ 174,215,165 (2002) $241,205,610 (2003)

37. 17,952 mt fresh fillets, 23,249 mt frozen fillets, 49,045 mt whole frozen (2003)

38. F Imports in 2003 were $241,205,610 F US production of $30,000,000 at farm F 2003 sales were over $271,000,000 F 1994 - 2003 US tilapia sales (imports and domestic) exceeded one billion $$$ US Consumption of tilapia

39. Major fresh fillet buyers (US) F Major restaurant chains (Darden: Red Lobster, Bahama Breeze, Olive Garden, Landry’s: Joe’s CrabShack, Wille G’s, Rainforest Cafe), Ruby Tuesday, Applebees). F Major grocery chains (Safeway, Kroger, Winn-Dixie, Wegmans, Publix, Basha’s) F Food service (supply small restaurant & grocery chains) - SYSCO, Fleming Co., Shamrock F Brokers - most based in Miami, Tampa, Houston, Los Angeles, San Francisco, New York, Seattle

40. Fresh tilapia fillet products F Size (under 3 oz, 195 g F Skin on, shallow skin or deep skin F Individual wrap, 2 or 5 kg package, master pack

41. Fresh tilapia fillet product prices FOB Miami F Size (under 3 oz, 195 g $3.35 - 3.55/lb F Variation in prices due to skinning, packaging, volumes and history with buyer F Additional variations with terms of payment

42. Expanding European markets F Quality control and assurance F Advertising F New recipes F Substitute for sea bream, sea bass, flounder, snapper F New value added product forms

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

44. Advertising

45. Direct retail sales

46. New recipes

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

49. 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 Zimbabwe - Fresh fillets F Indonesia - IQF fillets F Thailand - IQF fillets

50. Current EU 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

51. African Markets F Local production and consumption F Majority stays in producing household F Egypt has market development, but little processing capacity F Rest of Africa needs more processing

52. Impacts of “Industrial” Production of Tilapia F Spin-off some products into local markets F Availability of prepared feeds F Availability of domesticated stocks F Possibility of more production cooperatives

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

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

55. Predictions for Value-added products F Processing and "value-adding" will intensify in producing countries

56. Sashimi

57. IQF Fillets

58. Breaded tilapia products

59. Fried tilapia skins

60. Smoked products

61. Changes and Predictions F More “organic” forms F Reduction in MT for sex reversal

62. Changes and Predictions F World tilapia production (1,265,780 mt in 2000, FAO) reached 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

63. Aquaculture Collaborative Research Support Program Thank you! Questions? The Aquaculture CRSP is funded in part by United States Agency for International Development (USAID) Grant No. LAG-G-00-96-90015-00 and by participating institutions.

64. Tilapia production in the Americas

65. Strain evaluations F For saline waters - Hybrid red strains are preferred F For cage and pond culture Chitralada strain of O. niloticus originally from Thailand and further developed in Brasil. F The GIFT strain of O. niloticus, originally developed in Philippines is most common in Philippines and China F YY Super males - Genetically Male Tilapia

66. Estimated cost of production F China - $0.70/kg F Africa - $0.75/kg F Philippines, Indonesia, Brasil - $0.80/kg F Thailand, Peru - $0.85/kg F Ecuador, 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