Tilapia Production and Markets Kevin Fitzsimmons, Ph.D. Professor, University of Arizona Vice President, American Tilapia Association Past - President, World Aquaculture Society London November, 2003 updated for Aug 2005 Introduction Quick review of tilapia Explosion in tilapia trade The US and EU Markets Value added products Opportunities to expand markets Tilapia production Currently second in volume to carps Prediction: Tilapia will become most important aquaculture crop in this century Widest demand, no religious/cultural concerns, few environmental concerns More genetic potential Greatest variety of production systems World Tilapia Production of 2,007,087 mt in 2004 Vietnam Costa Rica Ecuador 1% 1% Cuba 2% Honduras 2% 1% Colombia 2% Indonesia 9% Brasil 4% China 45% Taiwan 5% Thailand 5% Mexico 6% Philippines 6% Egypt 11% 0 Others United States Honduras Costa Rica Vietnam Ecuador Cuba Colombia Indonesia Brasil Taiwan Thailand Mexico Philippines Egypt China metric tons per year World Tilapia Production of 2,007,087 mt in 2004 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Major Tilapia Producers (for year 2004) – 897,300 metric tons / year Egypt – 220,000 mt / year Indonesia – 169,310 mt / year Philippines - 122,277 mt / year Mexico - 110,000 mt / year Thailand - 100,000 mt / year Taiwan Province - 90,000 mt / year Brasil - 80,000 mt / year China Farmed around the world. Tilapia production in 100+ countries. China is world’s largest producer. Philippines, Thailand, Indonesia, Latin America, Middle East significant producers Germany, Belgium, Spain, Canada, Korea, Japan, most states in US Total production >2,000,000 mt in 2004 Global Tilapia Sales (farmgate) For year 2000 US $ 1,706,538,200 (FAO Fisheries Circular No. 886) 2004 sales >$ 3,000,000,000 Tilapia - the aquatic chicken Grows in all kinds of farms Eats all kinds of food Large eggs and easy to rear young Lots of ways to prepare the fish Large cage farms Tilapia-shrimp polyculture farms Ponds and cages Intensive tank culture Tanks in Arizona Tanks in California Intensive raceways Raceway Systems Extensive raceways Intensive farms in buildings in cool climates Intensive farms with recirculation in greenhouses Integrated with crop irrigation How did tilapia get so popular, so fast? Tilapia - The Perfect Aquaculture Storm Miracle of Loaves and Fishes 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 demand Accepted in many national dishes Popular in many forms (live, whole, fillets, fresh and frozen, smoked, sashimi, fried skins) Tilapia the “Green” farmed fish Herbivore / omnivore, low trophic level feeder Algae, bacteria, and detritus are important food sources Prepared feeds are mostly grains and ag byproducts Can be reared in high densities, with low water exchange Disease resistant and tolerant of poor water quality. Anti-biotics and chemicals are rarely used. The “environmental” fish Promoted by aid agencies and NGO’s Dr. M. Gupta wins World Food Prize for promotion of tilapia aquaculture, June 10, 2005 Grown mostly in developing countries Often used in integrated farming systems Frequently reared in reservoirs and irrigation systems with effluents used for irrigation, reducing fertilizer applications Genetic improvements in tilapia (From: Mair, G., 2002) Research & Development ISTA 7 (Veracruz, MEXICO Sept 6-8, 2006) International Symposia on Tilapia in Aquaculture Nutritional quality USDA has completed a complete highly technical nutritional analysis. Now is preparing nutritional report on tilapia for the general public New USDA “Pyramid” guidelines further support frequent fish consumption Nutritional quality Moderate in PUFA’s: 0.387 g/100g raw 0.600 g/100g cooked Moderate omega 3 FA’s: 0.141 g/100g raw 0.220 g/100g cooked Source – USDA- ARS Lab Low in mercury: Tilapia = 0.01 ppm (or non-detect) Shark = 0.99 ppm Source FDA http://www.cfsan.fda.gov/~frf/sea-mehg.html US market development The LAND opens at EPCOT in 1983 – features tilapia culture and on menu in the Good Turn Restaurant Farms in ID, CA, FL & AZ begin sales to Asian stores and restaurants Farms in Colombia, Costa Rica, Jamaica Taiwan, and Indonesia begin imports Top Ten Seafoods (U.S.) per capita (lbs) 2000 Tuna Shrimp Pollock Salmon Catfish Cod Clams Crabs Flatfish Scallops Tilapia 2001 2002 3.5 Shrimp 3.4 Shrimp 3.2 Tuna 2.9 Tuna 1.6 Salmon 2.0 Salmon 1.5 Pollock 1.2 Pollock 1.1 Catfish 1.1 Catfish 0.8 Cod 0.6 Cod 0.5 Clams 0.5 Crabs 0.4 Crabs 0.4 Clams 0.4 Flatfish 0.4 Tilapia 0.3 Tilapia 0.35 Flatfish 0.28 2003 2004 (est) 3.7 Shrimp 4.0 Shrimp 4.0 3.1 Tuna 3.4 Tuna 3.4 2.0 Salmon 2.2 Salmon 2.2 1.1 Pollock 1.7 Pollock 1.7 1.1Catfish 1.1 Catfish 1.1 0.7 Cod 0.6 Tilapia 0.7 0.6 Crabs 0.6 Cod 0.6 0.5Tilapia 0.54 Crabs 0.6 0.4 Clams 0.5 Clams 0.5 0.3 Scallops 0.3 Scallops 0.3 US Tilapia consumption 412,148,000 lbs (187,000 mt) of live weight-2003 504,716,000 lbs (229,000 mt) of live weight-2004 250,000 Metric tons 200,000 150,000 100,000 50,000 0 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 19,480 mt fresh fillets, 36,160 mt frozen fillets, 57,2990 mt whole frozen (2004) Tilapia product forms imported to the U.S. 120,000 100,000 Whole Frozen Fillet Frozen Fillet Fresh 60,000 40,000 20,000 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 0 1992 Metric tons 80,000 $174,215,165 (2002) $241,205,610 (2003) $297,413,000 (2004) $ 352,305,388 (est 2005) Value Value of of Tilapia Tilapia product product forms formsimported imported to to the the U.S. U.S. 2002 $200,000,000 $450,000,000 $180,000,000 $400,000,000 $160,000,000 $350,000,000 $140,000,000 $300,000,000 $ US $ US $120,000,000 $250,000,000 Whole Frozen Whole Frozen Fillet Frozen Fillet Frozen Fillet Fresh Fillet Fresh Whole Frozen $100,000,000 $200,000,000 $80,000,000 $150,000,000 Fillet Frozen $60,000,000 $100,000,000 $40,000,000 $50,000,000 1996 1997 1998 1999 2000 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1995 2001 est 2005 1994 1994 $0 1993 1993 1992 Fillet Fresh $0 $20,000,000 2002 $176,152,694 imports Jan-June 2005 $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 Whole Frozen Fillet Fresh Fillet TOTAL Jan-June 2005 2005 2005 (est) Imports should be > $ 352,305,388 US Sales of tilapia Imports in 2004 were $297,413,261 US production of $40,000,000 at farm 2004 Total US tilapia sales were over $337,000,000 2005 Sales estimate – $176,152,694 (Jan-June imports) *2= $352,305,388 + $40,000,000 = $392,000,000 Tilapia (May 25, 2005 Madrid Daily) Europe is following US trend of adopting tilapia as replacement for traditional fishes Major tilapia market segments US vs. EU Live fish (supplied by US growers) Fresh fillets (supplied by Ecuador, Honduras, Costa Rica and Panama) Frozen fillets (supplied by China, Indonesia) Sashimi grades (supplied by Taiwan) Live fish (supplied by EU growers) Fresh fillets (supplied by Jamaica, Ecuador, and Zimbabwe) Frozen fillets (supplied by China, Indonesia) Sashimi grades (supplied by Taiwan) Major fillet buyers (US) Major restaurant chains (Darden Red Lobster, TGI Fridays, Landry’s, Joe’s CrabShack, Ruby Tuesday.) Major grocery chains (Safeway, Kroger, Winn-Dixie, Wegmans) 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 Major fillet buyers (EU) Major grocery chains (TESCO, Marks & Spencer, INTERMARCHE, Carrefour) Food service (supply small restaurant & grocery chains) - Youngs Brokers –Iceland.co Brands – BirdsEye, Movenpick, iglo Consumer evolution Ethnic buyers (Asian - African) Up-scale restaurants Casual dining Hyper and super markets Local groceries Expanding markets in the EU Quality control and assurance Advertising Product placement Endorsements New recipes Substitute for snapper, bass, flounder New value added product forms Quality control and assurance National standards ISO and HACCP (Hazard Analysis at Critical Control Points) Industry standards Buyer standards Other (NGO’s) Improved processing plants IQF Fillets in re-sealable packages Tilapia Market Trends Prices have been constant or trending down for several years, will not increase with inflation 7 6 5 Fresh fillet Frozen fillet Whole Live 3 2 1 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 0 1992 $/kg 4 Breaded tilapia products Smoked products Advertising Direct retail sales Product placement “Saving Faith” Murder mystery Detective fixes elegant tilapia dinner to seduce the beautiful blonde. Endorsements 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 New recipes New recipes By-products Leather goods from skin will become a significant contributor to profitability Pharmaceuticals from skins Formed fish products Fertilizer Fish meal Flowers made from Tilapia scales Typical prices for Tilapia products sold in the U.S. (August 2005.) Whole live fish Whole frozen fish Whole fresh fish Fillets, fresh Fillets, frozen Pondside/Processor $/kg 2.20 - 6.60 1.10 - 2.00 Wholesale $/kg Retail $/kg 2.80 - 7.50 2.00 - 2.35 4.00 - 10.00 2.20 - 5.00 2.30 - 3.00 3.00 - 4.00 4.00 - 9.00 5.00 - 7.00 4.80 - 6.75 6.00 - 8.00 5.50 - 7.80 8.00 - 12.00 7.00 - 11.50 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 prices FOB Miami Size (under 3 oz, < 85 g) $2.80 - 3.00/lb 3-5 oz, 85 - 140 g $3.00 - 3.10/lb 4-6 oz, 110 - 170 g $3.10 - 3.25/lb 5-7 oz, 140 - 195 g $3.15 - 3.40/lb over 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 Mexico - 110,000 mt Tilapia-shrimp farm in Sonora Pond Tilapia farm in Tamaulipas Markets in Mexico Raceway system, Tamaulipas Strong domestic markets; on ice, fillets in grocery stores All domestic consumption Will eventually develop export markets. Brasil - 80,000 mt Tilapia production & Markets in Brasil Production in Southeast and Northeast Red tilapia in Southeast for fee-fishing and food Cage farms allowed in NE reservoirs. Tilapia leather industry Jump in interest with ISTA 5 in Rio. Developing export markets. Tilapia production in Ecuador 35,000 mt Replacing shrimp because of white spot and other shrimp diseases Using shrimp infrastructure Exporting to US and EU Benefits to shrimp culture with polyculture Tilapia production in Ecuador and shrimp viral infections TILAPIA PRODUCTION IN ECUADOR 40,000 35,000 Production (mt) 30,000 25,000 20,000 White Spot 15,000 10,000 IHHN 5,000 Taura 0 1990 1991 1992 1993 1994 1995 1996 1997 Year 1998 1999 2000 2001 2002 2003 2004 Red strains of tilapia most popular for brackish polyculture systems Tilapia production in outside ponds with shrimp in covered ponds Costa Rica - 15,000 mt Acuacorporacion ponds in Cañas, Costa Rica Jamaica - 5,200 mt Tilapia production 1980-2001 6000 Tonnes 5000 4000 3000 2000 1000 0 80 82 84 86 88 90 92 Year 94 96 98 2000 2001 USA 9,000 mt Production in most states Mostly intensive systems, many recirculating Sales to ethnic markets as live fish, high value US Tilapia Aquaculture 9,200 mt per year (20,000,000 lbs) California is largest producer ID, NC, FL, TX, AZ, NY,PA, MA are also significant producers Virtually all tilapia in US for live sales Asian groceries and restaurants are primary market outlets 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 fillets Ecuador - fresh fillets Taiwan - whole, IQF, sashimi South & Central America - fresh fillets Zimbabwe - Fresh fillets Indonesia - IQF fillets Thailand - 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 Further intensification in virtually every country Changes and Predictions EU / US production will increase slowly, intensifying current production methods Changes and Predictions Polyculture with shrimp will become common in most shrimp farming areas (already practiced in Thailand, Philippines, Mexico, US, Ecuador, Peru, Eritrea) Tilapia - shrimp polyculture Floating cage Hapa (net pen) 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, 35% cages, 10% intensive recirculating and tank systems, 5 % other Predictions for Value-added products Processing and "value-adding" will intensify in producing countries Sashimi Fried tilapia skins Future global tilapia production 2,500 2,000 1,500 1,000 2010 2006 2005 2004 0 2003 500 2002 Metric tons (000) 3,000 Thank-you ! Questions? Production of Tilapia in the Americas 2002 (by volume) COSTA RICA 5% CUBA 12% JAMAICA 2% OTHERS 1% BRAZIL 23% HONDURAS 4% COLOMBIA 7% ECUADOR 8% US 3% MEXICO 35% Tilapia production in the Americas 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 Estimated cost of production China - $0.70/kg Philippines, Indonesia, Brasil - $0.80/kg Thailand, Peru - $0.85/kg Ecuador, Honduras, Costa Rica - $0.90/kg Mexico - $1.00/kg Taiwan Province - $1.05/kg US - $2.00/kg Canada - $2.10/kg US. Tilapia imports 1993-2002 Sources of imported tilapia to US (LWE in m e tric tons ) 120000 others Thailand 100000 Indonesia Colombia 80000 China 60000 Mexico Jamaica 40000 Ecuador 20000 Costa Rica Taiw an 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 www.tilapia.org