Domestic demand keeps market firm

At the INFOFISH Tilapia 2015 conference, Professor Kevin Fitzsimmons estimated that global tilapia production exceeded 4.85 million tonnes in 2014. For 2015, it is forecasted that production will grow by 6% to total 5 million tonnes.

China

During the recent Tilapia 2015 conference organized by INFOFISH in Kuala Lumpur, Professor Dr Jun Rong Liu reported that domestic Chinese tilapia production in 2013 was 1.6 million tonnes. She noted that though domestic demand for tilapia remains strong, much work needs to be done by the industry to improve the quality of the fish.

Indeed, balancing high production, quality and sustainability is challenging for the tilapia industry in China. In order to increase quality, the industry must take a comprehensive approach to deal with brood stock, water quality, fish feed, live handling, value-added processing and live transport. The Chinese tilapia industry has also been turning its focus more towards sustainability.

In terms of exports, Chinese volumes are slowing with the nation’s exporters looking to diversify and enlarge their markets. During the first quarter of 2015, total exports of frozen tilapia experienced marginal growth (+2.2%) in volume compared with the same time period last year, primarily due to increases in frozen fillet (+9.7%) and breaded fillet (+22.5%) exports. Besides increased frozen fillet exports to the major markets, the USA and Mexico, exports also increased to Israel and Iran. In general, EU countries imported less tilapia during this period.

USA

Imports of high value fresh/chilled (air-flown) tilapia fillets into the USA during the first quarter of 2015 increased marginally by 1.4% in quantity but by 5.0% in value against the same period in 2014. Honduras remains the largest exporter, although supplies declined by 7.1%. Supplies were higher from Colombia with a 30% increase in shipments, which allowed the country to become the number three supplier of fresh tilapia fillets to the US market. Costa Rica and Ecuador reported sharp declines in exports.

Frozen tilapia imports during the first quarter of 2015 confirmed the strong demand in the market as there was a 27% increase in this import category compared with the same period in 2014. Supplies increased for both frozen fillets (+26%) and whole frozen (+30%) tilapia with a higher percentage for the latter coming from Myanmar, a relatively new supplier. Frozen fillet exports also increased from Latin American, Ecuador and Honduras.

Tilapia remains a popular product in the retail sector and recently, whole fresh tilapia can increasingly be found in supermarkets. NMFS trade statistics reported that there were 226 tonnes of whole fresh tilapia imports during the first quarter of 2015, up from 83 tonnes during the same time period last year. The major suppliers were Myanmar, Bangladesh, Pakistan and China. Mexico was the largest supplier from Latin America.

Latin America

For 2015, tilapia production is expected to increase in Latin America as demand remains strong in the USA and neighboring markets, as well as in the growing domestic market. According to the National Association of Aquaculture Producers in Honduras, 5% growth in Honduran exports is expected this year, specifically for fresh tilapia fillets going to the USA and Mexico. During the January-April of 2015, Guatemala exported 60 tonnes of fresh tilapia fillets to the USA, which compares to just 8 tonnes during the same time period in 2014. The domestic tilapia market is growing in Costa Rica, Guatemala, El Salvador, Honduras, Nicaragua, and Panama.

EU

During the opening months of 2015, imports of tilapia into the EU continued on the downward trend that started in 2014. Eurostat data reported a total of 7 702 tonnes of frozen tilapia (whole and fillet) imported, a reduction of 1 283 tonnes compared with the same period in 2014. China was the leading supplier for both whole fish and fillets, although it supplied 16% less. Viet Nam was the second largest supplier for frozen tilapia fillets, and exported 803 tonnes more during this period. In terms of whole frozen tilapia, imports increased from Thailand and Myanmar.

Asia

Many pangasius farmers in Viet Nam who have been forced out of business are starting to rear tilapia. Industry sources reveal that tilapia is farmed in cages in the Rivers Hau and Tien, the main branches of the Mekong River. Both Nile tilapia (Orechromis niloticus) and Mozambique tilapia (Orechromis mossambicus) are grown in about equal quantities and, like pangasius, are mostly exported in fillet form. In 2014, Viet Nam exported tilapia to more than 60 countries, with the USA being the most important market taking 18.2% of total Vietnamese exports of this species, importing 1 745 tonnes valued at USD 5.24 million. Spain followed with imports valued at USD 3.7 million and Colombia with imports valued at USD 3.03 million. The remaining top ten importers (in order) were the Netherlands, Belgium, Germany, Mexico, the UK, the Czech Republic and Italy.

During the first quarter of 2015, Indian exports fell approximately 71% compared with the same period in 2014 to 706 tonnes. However, their exports to the USA increased slightly by 18 tonnes. Much of the Indian production is increasingly entering the domestic market to fulfill the growing demand.

During the reporting period, tilapia exports from Taiwan Province of China (PC) were comprised of nearly 89% of whole frozen product from a total of 5 111 tonnes. At the recent INFOFISH Tilapia 2015 conference, Professor Fu-Sung Chiang, from the National Taiwan PC Ocean University, reported that tilapia remains one of the cheaper fishes available, whether in the live whole fish market, sushi bars, or hot pot restaurants in Taiwan PC, despite the fact that the outbreak of avian influenza in January 2015 drove up the demand for fish and fish products. As of 24 March 2015, the price of fresh Nile tilapia was USD 3.81 per 600 g and fresh Mozambique tilapia was USD 2.86 per 600 g
 in the retail market. Chiang added that there had been a shortage of tilapia from 2013-2014 due to abnormal weather conditions.

Outlook

Despite some sporadic supply hiccups, tilapia remains a popular protein choice. Aside from China, other large producers are increasingly channeling more supplies to the domestic market.