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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
Introduction
Quick review of tilapiaExplosion in tilapia tradeThe US and International MarketsValue added productsOpportunities to expand markets
Tilapia productionCurrently second in volume to carpsPrediction: Tilapia will become most
important aquaculture crop in this centuryWidest demand, no religious/cultural
concerns, few environmental concernsMore genetic potentialGreatest variety of production systems
World Tilapia Production of 1,501,232 mt in 2003
China46%
Taiwan Prov.6%
Philippines7%
Thailand7%
Mexico7%
Others3%
Vietnam2%
Indonesia3%
Costa Rica1%
Colombia3%United States
1%Brasil
5%
Egypt4%
Cuba3%
Ecuador2%
Farmed around the world.Tilapia production in 100+ countries.China is world’s largest producer.Philippines, Thailand, Indonesia, Latin
America, Middle East significant producersGermany, Belgium, Spain, Canada, Korea,
Japan, most states in USTotal production >1,500,000 mt in 2003
Global Tilapia Sales (farmgate)
For year 2000US $ 1,706,538,200
(FAO Fisheries Circular No. 886)
2003 sales >$ 2,500,000,000
Tilapia - the aquatic chicken
Grows in all kinds of farmsEats all kinds of foodLarge eggs and easy to rear youngLots of ways to prepare the fish
Tilapia widely popular around the world and beyond.
Common names: Tilapia, boulti, mojara, chambo, lou fei, pla nil, St. Peters fish, freshwater and/or red snapper
Used in many cuisine, hundreds of recipes, often replaces over-fished local species
Eggs hatched and fry reared on International Space Station
Established market demandAccepted in many national dishesPopular in many forms (live,
whole, fillets, fresh and frozen, smoked, sashimi, fried skins)
Environmentally correct
Primarily vegetarianMost farm systems cause little pollutionTilapia were long ago established as
exotic species, common food fishGrown mostly in developing countriesFew diseases, essentially no chemicals
used
Research & Development ISTA 6
(Manila, Philippines, Sept 12 -16, 2004) International Symposia on Tilapia in Aquaculture
Major Tilapia Producers (for year 2002)
China - 706,000 metric tons / yearPhilippines - 122,277 mt / yearMexico - 110,000 mt / yearThailand - 100,000 mt / yearTaiwan Province - 90,000 mt / yearBrasil - 75,000 mt / year Indonesia - 50,000 mt / year
Tilapia production & Markets in Brasil
Production in Southeast and NortheastRed tilapia in Southeast for fee-fishing
and foodCage farms allowed in NE reservoirs.Tilapia leather industryJump in interest with ISTA 5 in Rio.Developing export markets.
Tilapia production in Ecuador 27,000 mt
Replacing shrimp because of white spot and other shrimp diseases
Using shrimp infrastructureExporting to US and EUBenefits to shrimp culture with
polyculture
Tilapia production in Ecuador and shrimp viral infections
TILAPIA PRODUCTION IN ECUADOR
0
5,000
10,000
15,000
20,000
25,000
30,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Year
Pro
du
ctio
n (
mt)
IHHN Taura
White Spot
Jamaica - 5,200 mtTilapia production 1980-2001
0
1000
2000
3000
4000
5000
6000
80 82 84 86 88 90 92 94 96 98 2000 2001
Year
To
nn
es
USA 9,000 mt
Production in most statesMostly intensive systems, many
recirculatingSales to ethnic markets as live
fish, high value
US Tilapia consumption - 2003(187,000 mt of live weight
= 412,260,000 lbs)
020,00040,00060,00080,000
100,000120,000140,000160,000180,000200,000
Met
ric
tons
1986
1988
1990
1992
1994
1996
1998
2000
2002
Top Ten Seafoods (U.S.)per capita (lbs)
2000 2001 2002Tuna 3.5 Shrimp 3.4 Shrimp 3.7Shrimp 3.2 Tuna 2.9 Tuna 3.1Pollock 1.6 Salmon 2.0 Salmon 2.0Salmon 1.5 Pollock 1.2 Pollock 1.1Catfish 1.1 Catfish 1.1 Catfish 1.1Cod 0.8 Cod 0.6 Cod 0.66Clams 0.5 Clams 0.5 Crabs 0.57Crabs 0.4 Crabs 0.4 Clams 0.54Flatfish 0.4 Flatfish 0.4 Tilapia 0.40Scallops 0.3 Tilapia 0.35 Flatfish 0.32Tilapia 0.28
US. Tilapia imports 1993-2002Sources of imported tilapia to US
0
20000
40000
60000
80000
100000
120000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
(LW
E in
met
ric to
ns)
others
Thailand
Indonesia
Colombia
China
Mexico
Jamaica
Ecuador
Costa Rica
Taiw an
Value of Tilapia product forms imported to the U.S. 2002
Fillet Fresh
Fillet Frozen
Whole Frozen
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
$200,000,000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
$ U
S Whole Frozen
Fillet Frozen
Fillet Fresh
Figure 2. Value of Tilapia product forms imported to the U.S.
Fillet Fresh
Fillet Frozen
Whole Frozen
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
$ U
S Whole Frozen
Fillet Frozen
Fillet Fresh
$ 174,215,165 (2002) $241,205,610 (2003)
Tilapia product forms imported to the U.S.
Fillet Fresh
Fillet Frozen
Whole Frozen
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Me
tric
to
ns
Whole Frozen
Fillet Frozen
Fillet Fresh
17,952 mt fresh fillets, 23,249 mt frozen fillets, 49,045 mt whole frozen (2003)
Imports in 2003 were $241,205,610US production of $30,000,000 at farm2003 sales were over $271,000,000
1994 - 2003 US tilapia sales (imports and domestic) exceeded one billion $$$
US Consumption of tilapia
Major fresh fillet buyers (US)Major restaurant chains (Darden: Red Lobster, Bahama Breeze,
Olive Garden, Landry’s: Joe’s CrabShack, Wille G’s, Rainforest Cafe), Ruby Tuesday, Applebees).
Major grocery chains (Safeway, Kroger, Winn-Dixie, Wegmans, Publix, Basha’s)
Food service (supply small restaurant & grocery chains) - SYSCO, Fleming Co., Shamrock
Brokers - most based in Miami, Tampa, Houston, Los Angeles, San Francisco, New York, Seattle
Fresh tilapia fillet products
Size (under 3 oz, < 85 g) 3-5 oz, 85 - 140 g 4-6 oz, 110 - 170 g 5-7 oz, 140 - 195 g over 7 oz, > 195 g
Skin on, shallow skin or deep skin Individual wrap, 2 or 5 kg package, master pack
Fresh tilapia fillet product pricesFOB Miami
Size (under 3 oz, < 85 g) $2.80 - 3.00/lb 3-5 oz, 85 - 140 g $3.00 - 3.10/lb4-6 oz, 110 - 170 g $3.10 - 3.25/lb5-7 oz, 140 - 195 g $3.15 - 3.40/lbover 7 oz, > 195 g $3.35 - 3.55/lb
Variation in prices due to skinning, packaging, volumes and history with buyer
Additional variations with terms of payment
Expanding marketsQuality control and assuranceAdvertisingProduct placementEndorsementsNew recipesSubstitute for snapper, bass, flounderNew value added product forms
Quality control and assuranceNational standardsISO and HACCP (Hazard Analysis at
Critical Control Points)
Industry standardsBuyer standardsOther (NGO’s)
Consumer evolution
Ethnic buyers (Asian - African)Up-scale restaurantsCasual diningHyper and super marketsLocal groceries
Product placement
“Saving Faith” Murder mysteryDetective fixes elegant tilapia
dinner to seduce the beautiful blonde.
Dear Kevin, 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.
I LOVE THE PRODUCT!!!! Marian Birnie Aug. 12, 2001
Endorsements
By-productsLeather goods from skin will become a
significant contributor to profitabilityPharmaceuticals from skinsFormed fish productsFertilizerFish meal
EU / US Supply and Demand TRENDS
Supply of fillets primarily from China, Southeast Asia, South and Central America.
Demand for live fish needs to expand beyond Asian markets
With rapid increases in supply, demand must increase at least as fast to support price.
Major Tilapia Producers in International Trade
China - whole frozen, IQF filletsEcuador - fresh filletsTaiwan - whole, IQF, sashimiSouth & Central America - fresh filletsZimbabwe - Fresh filletsIndonesia - IQF filletsThailand - IQF fillets
Current International Market Trends
Increase in demand for all forms of tilapia
Demand increase will be greatest for fresh fillets
Prices have been constant for several years and will remain stable, will not increase with inflation
Changes and Predictions
EU / US production will increase slowly, intensifying current production methods
Changes and PredictionsPolyculture with shrimp will
become common in most shrimp farming areas (already practiced in Thailand, Philippines, Mexico, US, Ecuador, Peru, Eritrea)
Changes and Predictions
Production will be 75% Oreochromis niloticus, 20% Red strains, O. aureus and O. mossambicus mostly for hybridization
Changes and Predictions
Production will be 50% intensive ponds, 30% cages, 10% intensive recirculating and tank systems, 10 % other
Predictions for Value-added products
Processing and "value-adding" will intensify in producing countries
Changes and PredictionsWorld tilapia production (1,265,780
mt in 2000, FAO) reached 1,500,000 mt in 2003 and 2,000,000 mt by 2010
2003 sales over $2 billion 2010 sales over $4 billion
US Tilapia supply (2003)186,551 metric tons (live weight)
CHINA31%
ECUADOR16%
INDONESIA6%
TAIW AN Prov.24%
HONDURAS6% PANAMA
1%
COSTA RICA7%
BRAZIL0%
US7%OTHER
2%
Production of Tilapia in the Americas 2002 (by volume)
ECUADOR8%
MEXICO35%
HONDURAS4%
BRAZIL23%
COSTA RICA5%
CUBA12%
US3%OTHERS
1%
JAMAICA2%
COLOMBIA7%
Strain evaluations For saline waters - Hybrid red strains are
preferred For cage and pond culture Chitralada strain of O.
niloticus originally from Thailand and further developed in Brasil.
The GIFT strain of O. niloticus, originally developed in Philippines is most common in Philippines and China
YY Super males - Genetically Male Tilapia