1. Tilapia International Supply and Demand: How do we grow it cheaper and sell more? Kevin Fitzsimmons University of Arizona American Tilapia Association Louisville, KY Feb 20, 2003

2. Introduction F Review worldwide tilapia trade F US suppliers and consumers F Technological advances F US production F Opportunities to expand consumption

4. Major Tilapia Producers (for year 2000) F China - 629,182 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 - 65,000 mt / year F Indonesia - 50,000 mt / year

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

6. US Tilapia consumption - 2002 (Jan-Nov) (117,842 mt of live weight) (259,723,000 lbs of live weight)

8. US. Tilapia imports 1993-2002

9. $155,371,374 (Jan-Nov 2002)

10. Problem areas in US tilapia aquaculture F High feed & other production costs F Slow growing females F Off-flavors F Effluents and other regulations F Marketing to new customers F Marketing to old customers F Marketing, marketing, marketing

11. Advances and Solutions: Lowering feed costs F Alternative ingredients F Green systems for fry and fingerlings F Increase volume purchases (co- operative buying)

12. Advances and Solutions: Slow growing females F Methyltestosterone for sex-reversal F Genetically male tilapia F All male hybrids F High density culture F O. niloticus with larger females

13. Advances and Solutions: Off-flavors F Depuration systems F Control of blue-green algae F Production in systems with limited access to benthic algae

14. Advances and Solutions: Effluents & other Regulations F Integrated farming systems F Field crop irrigation, hydroponics, golf courses

15. Advances and Solutions: Marketing F Advertising F Product placement F Endorsements F Co-market with big buyers

16. Advertising

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

18. F Dear Kevin, F I recently began using Tilapia fillets farm raised by Sea Best and distributed by Beaver Street Fisheries, Inc. I buy these in individual vacuum sealed packages in one pound bags at Wal-Mart in San Marcos, Texas. 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 trust you will forward these comments to the producer. F I LOVE THE PRODUCT!!!! F Marian Birnie Aug. 12, 2001

19. www.tilapia.org

20. Co-market with big buyers F Provide live tanks in restaurants and grocery stores (Trader Joe’s) F Live tanks at farmers markets F Sell to processors along with other fish (catfish)

21. Direct retail sales

22. 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

23. USA - Intensive tanks Tanks in Arizona Tanks in California

24. USA - Ponds and cages

25. Raceway Systems Intensive raceways Extensive raceways

26. Intensive farms in New York and Iowa

27. Intensive farms in Illinois & Louisiana

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

29. 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.

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

31. 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.

32. New recipes

34. Changes and Predictions F Further intensification in virtually every country F Production will be 75% Oreochromis niloticus, 20% Red strains, O. aureus and O. mossambicus mostly for hybridization F Production will be 50% intensive ponds, 25% cages, 10% intensive recirculating systems

35. Changes and Predictions F Further intensification in virtually every country F Production will be 75% Oreochromis niloticus, 20% Red strains, O. aureus and O. mossambicus mostly for hybridization F Production will be 50% intensive ponds, 25% cages, 10% intensive recirculating systems

36. Changes and Predictions F Further intensification in virtually every country F Production will be 75% Oreochromis niloticus, 20% Red strains, O. aureus and O. mossambicus mostly for hybridization F Production will be 50% intensive ponds, 25% cages, 10% intensive recirculating systems

37. Changes and Predictions F Leather goods from skin will become a significant contributor to profitability F Processing and "value-adding" will intensify in producing countries F Polyculture with shrimp will become common in most shrimp farming areas

38. Changes and Predictions F Leather goods from skin will become a significant contributor to profitability F Processing and "value-adding" will intensify in producing countries F Polyculture with shrimp will become common in most shrimp farming areas

39. Changes and Predictions F Leather goods from skin will become a significant contributor to profitability F Processing and "value-adding" will intensify in producing countries F Polyculture with shrimp will become common in most shrimp farming areas (already practiced in Thailand, Philippines, Mexico, US, Ecuador, Peru, Eritrea)

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

41. Changes and Predictions F US production will increase slowly, intensifying current production methods F World tilapia production will reach 1,500,000 mt in 2003 and 2,000,000 mt by 2010

42. Thank you F Reminder: tilapia dinner at Lilly’s at 8:00 tonight F Questions ???

43. Typical Chinese Farms F 0.2 to 1.0 hectare ponds F Often polyculture with other fish F Sometimes have single aerator F Family operated F Sell to harvester

44. Boxed with retailer labels F US and European markets F Boxed with frozen fillets or whole fish

45. Marketing in China F Most fish sold locally to restaurants F Just beginning advertising F Suggest product placement, inclusion in government food programs, value added for domestic markets

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

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

48. Egypt and other Middle East F Egypt - Production in cages, polyculture ponds and rice paddies. F Israel - Intensive, center of research and technology transfer F Saudi Arabia - Intensive with crop irrigation F Jordan - Intensive

49. 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

50. Sashimi

51. Fried tilapia skins