Prospects on Brazilian Aquaculture and the tilapia sector by Renata Barroso • 8,500 Km of marine coast - 4.3 million km² of Economical Exclusive Zone; • 12% of total world fresh water; • 5.5 million ha of flooded areas - mainly water plant reservoirs; By Brazilian fisheries law up to 1% of the total area could be utilized for aquaculture production which corresponds to 55,000 ha (IN nº 7, april 28, 2005). Other important Brazilian facts ● Grain production: ● ● 28% soybean world production 7% corn world production ● Globally competitive meat industries ● ≈ 200 million habitants ● Seafood consumption grows 9% / year – Beef(2%) – Pork (3%) – Chicken (5%) 6.8 kg/hab/yr in 2002 9kg/hab/yr in 2009 9.7 kg/hab/yr in 2011 Sustainable Development of Fishing and Aquaculture the sector underwent important changes since 2003 Brazilian Fisheries and Aquaculture Special Secretary – linked straight to Ministry of Embrapa Fisheries Fisheries and Aquaculture and Aquaculture the presidencial office 2003 2008 2009 More Fishing and Aquaculture 2008 – 2011: US$700million 2012 "Plano Safra” (Yield Plan) 2012-2014: US$ 1,6 billion for credit lines Brazilian capture fisheries and aquaculture production 1999-2011 1,600,000 1,400,000 Production (ton) 1,200,000 628.704 1,000,000 415.649 800,000 600,000 400,000 200,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 0 Aquicultura Pesca Extrativa Total 31,2% 51,2% From 40 cultivated species - Main species production (ton), 2011 Tilapia Carps ton 94,579 253.824 80,896 67,624 155.451 132.958 111.145 2005 2006 45,170 45,832 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 2011 2011 Cultivated Marine Shrimp 75,904 63,134 65,000 65,000 70,251 Colossoma 2005 2006 2007 2008 Produção (toneladas) Source: MPA/IBAMA 2009 2010 111.084 54,313 69,422 65,188 25,272 2004 38.079 36,632 95.091 69.078 67.851 71.254 2004 ton 42,491 2004 25,011 2005 26,662 30,599 2006 2007 38,833 2008 46,454 2009 2010 2011 ton Brazilian fish exports and imports Volume (t) Exports Imports Balance Δ% Δ% 2009 2010 2011 (2009-2010) (2010-2011) 42.242 38.204 42.263 10% 11% 245.345 -203.102 285.591 -247.387 349.529 -307.265 16% 22% 22% 24% Δ% Δ% US$ (Mil) 2009 2010 2011 (2009-2010) (2010-2011) Exports 247.082 263.324 271.193 7% 3% Imports Balance 722.568 1.011.589 1.262.888 40% 25% -475.486 -748.265 -991.695 57% 33% The size of the Seafood business in Brazil 1,75 million ton (production – exports + imports) USD 10,8 billion/2011 (FOB Brazil, Average market value ) GROWING SECTOR The sector is not yet fully structured Technological development and innovation Is the internal market able to absorb this increased supply? Consumption: Brazil – 9,7 kg / capita / year X World - 19,2 kg / capita / year Regional Variation (INFOPESCA, 2011): - Amazonia state 34kg/hab/year - Rio de Janeiro 18kg/hab/year - Brasília 14kg/hab/year - São Paulo 15kg/hab/year Are fish reaching consumers? Higher income Number of stores Distribution efficience SUPERMARKET = Distribution SUPERMARKET = seafood promotion, quality / price/ diversity Marketing and Promotion Price Tilapia Background LAST 10 YEARS - BIG EXPANSION PRODUCTION Aquaculture (ton) Tilapia % 2010 479.399 155.451 32,4 2011 629.309 253.824 40,3 Technical aspects Starting size = 0,2 to 0,5g Comercial size = 600 g to 1 kg Harvest = 6 to 10 month 28% feed = US$ 0,35/kg to US$ 0,40/kg 32% feed = US$ 0,43/kg to US$ 0,48/kg Fries (0,2 to 0,5g ) = US$ 24 to US$ 48/ thousand Fingerling (20 to 30 g) = US$ 104 to US$148 / thousand 35% of tilapia farming Tilapia’s domestic price (US$) 2013-2014 Producer Fresh fillet Salmon – R$35,49 Tilapia - R$23,99 processing plant supermarket (filet) consumer US$1,30/kg US$ 7,38/kg filet US$ 10,23/kg Frozen fillet Tilapia - R$ 21,86 Cod - R$18,98 Photo by Kubitza, 2013 Tilapia’s market Domestic High acceptance after industry improvement High value products Exports Just worth it if BRL 2,80/USD (currently US$1.00 = BRL 2,34) Imports (higher competition forseen) Equador, Honduras China, Indonesia, Vietnam Taxes: maximum 35% (WTO) / Mercosul – max. 10% Challenges, Bottleneck and Opportunities Producers - Scale up production – bigger cages, environmental permition Capacity building Diversification / Adding value - package, presentation, products - Certification Market - Improve distribution and marketing structure - Drop distribution and marketing costs - through shorter and more efficient networks -Assure quality control along the distribution chain Entire value chain - Organization in one Unity or representative entity to better defend the sector through public policies Questions?? Thank you!! Renata Melon Barroso, PhD Embrapa Fisheries and Aquaculture / Brazilian Agricultural Research Corporation skype: cnpasa.renata Email: renata.barroso@embrapa.br Phone: +55 (63) 3229-7800 e 3229-7850 Mobile: +55 (63) 8464-8416 https://www.embrapa.br/pesca-e-aquicultura