1. Markets for Value added Tilapia Products Kevin Fitzsimmons, Ph.D. Professor, University of Arizona Vice President, American Tilapia Association President, World Aquaculture Society Honolulu March, 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, Middle East 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 California

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, boulti, mojara, chambo, lou fei, pla nil, St. Peters fish, 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. 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

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

22. Brasil - 75,000 mt

23. 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.

24. Tilapia production in Ecuador 27,000 mt 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

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

26. Red strains of tilapia most popular for brackish polyculture systems

27. Tilapia production in outside ponds with shrimp in covered ponds

28. Costa Rica - 15,000 mt Acuacorporacion ponds in Cañas, Costa Rica

29. Jamaica - 5,200 mt Tilapia production 1980-2001

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

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

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

33. US. Tilapia imports 1993-2002

34. $ 174,215,165 (2002) $241,205,610 (2003)

35. 17,952 mt fresh fillets, 23,249 mt frozen fillets, 49,045 mt whole frozen (2003)

36. 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

37. 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

38. 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

39. 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

40. Expanding markets F Quality control and assurance F Advertising F Product placement F Endorsements F New recipes F Substitute for snapper, bass, flounder F New value added product forms

41. 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)

42. Advertising

43. Direct retail sales

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

45. www.tilapia.org

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

47. 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

48. New recipes

50. 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

51. EU / US Supply and Demand TRENDS F Supply of fillets primarily from China, Southeast Asia, South 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.

52. 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

53. 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

54. Changes and Predictions F Further intensification in virtually every country

55. Changes and Predictions F EU / US production will increase slowly, intensifying current production methods

56. 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)

57. Tilapia - shrimp polyculture

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

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

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

61. Sashimi

62. IQF Fillets

63. Breaded tilapia products

64. Fried tilapia skins

65. Smoked products

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

67. 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

68. Thank-you ! F Questions?

71. Production of Tilapia in the Americas 2002 (by volume)

72. Tilapia production in the Americas

73. 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

74. Estimated cost of production F China - $0.70/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