US Markets for Tilapia Products

Kevin Fitzsimmons, Ph.D.

Professor, University of ArizonaVisiting Professor/Fulbright Scholar,

Asian Institute of Technology / Kasetsart University Bangkok, Thailand

Sec/Tres, American Tilapia Association

President, World Aquaculture Society

Tegucigalpa, HONDURAS

August 2004

Introduction

Quick review of tilapiaExplosion in tilapia tradeUS marketsOpportunities 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, Egypt 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

2010 sales >$ 5,000,000,000

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

Ponds and cages

Intensive tank cultureTanks in Arizona

Tanks in Eritrea

Raceway SystemsIntensive raceways

Extensive raceways

Intensive farms in buildings in cool climates

Intensive farms with recirculation in greenhouses

How did tilapia get so popular, so fast?

Tilapia - the Perfect “Aquaculture” Storm

Tilapia widely popular around the world and beyond.

Common names: Tilapia, chambo, boulti, lou fei, pla nil, St. Peters fish, mojara, 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

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

ISTA

P h i l i p p i n e s 2 0 0 4

12-16 September 2004Philippine International Convention Center

Roxas Boulevard, Manila, Philippines

Edited by: Remedios B. Bolivar, Graham C. Mair and Kevin Fitzsimmons

6th International 6th International Symposium on Symposium on

Tilapia in Tilapia in AquacultureAquaculture

Sponsored and Hosted by:

Co-Sponsored by:

Supporters: Collaborators:DA-BFAR

Genetic Improvements in Tilapia

(From: Mair, G., 2002)

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

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 Sales of tilapia

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

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

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)

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

Consumer evolution in US

Ethnic buyers (Asian - Latino)Up-scale restaurantsCasual diningClub storesLocal groceries

US Tilapia Supply and DemandSupply of fresh fillets primarily

from Central America and EcuadorFrozen fillets from China and

Southeast Asia.Demand for live fish in immigrant

Asian communities

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

Quality control and assuranceNational standardsISO and HACCP (Hazard Analysis at

Critical Control Points)

Industry standardsBuyer standardsOther (NGO’s)

Advertising

Current US 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

IQF Fillets

Smoked products

Impacts of “Industrial” Production of Tilapia

Spin-off some products into local markets

Availability of prepared feedsAvailability of domesticated stocksPossibility of more production

cooperatives

Historic consequencesForeign investment, new jobs, and

improved standard of livingForeign trade and reliable income Imports of technology and know-how

(especially processing, handling and packaging)

Spin-off to other aquaculture Improvements in personal hygieneMany jobs for women

Historic consequences

Desire of small farmers to adopt methods of large growers

Increase in effluent generationEutrophication from lake cage farms Increase in conflicts with fish eating

birds Imports of sex reverse hormones Improved basic farming practices

Historic consequences (Industry by-products)

Leather goods from skin will become a significant contributor to profitability

Pharmaceuticals from skinsFormed fish productsFertilizerFish meal

PredictionsTendency for small farmers to

“overshoot” level of technologyMore “organic” tilapia productsCut back on high level of protein in tilapia

dietsBird netting to discourage birdsReduction in MT for sex reversal Integrated farming to reuse effluents for

crop irrigation

PredictionsWorld tilapia production

(1,265,780 mt in 2000, FAO) reached 1,500,000 mt in 2003 and 2,000,000 mt by 2010

Aquaculture Collaborative

Research Support Program

Thank you!Questions?

The Aquaculture CRSP is funded in part by United States Agency for International

Development (USAID) Grant No. LAG-G-00-96-90015-00 and by participating institutions.