Tilapia producers continue to enjoy steady demand

As China supplies more to its domestic market, other producers try to fill the supply gaps in markets where China has been the main supplier. The upcoming Chinese Lunar Year celebration will see increased consumption of tilapia, especially live tilapia, in Southeast Asia, particularly in Malaysia, Singapore and Thailand.

China

Total Chinese tilapia exports during the January-September 2014 period increased marginally (+0.6%) in volume compared with a year ago, while in value exports experienced a 9.6% growth going above USD 1 billion in total. Frozen fillet exports (the most popular category) continued a downward trend from the previous reporting period (-6.3%). However, this decline was made up for by the positive growth in whole frozen tilapia exports (+5.85%). Of late China is increasingly using its local production for domestic consumption.

Exports are expected to increase to meet the higher demand during Lent in the USA market in the coming months. 

USA

Tilapia imports continued an upward trend into the third quarter of 2014. The share for frozen fillets stood at almost 70% of the total imports, followed by 17.7% for whole frozen and 12.7% for fresh fillets.

Fresh tilapia fillet imports dropped marginally (-0.5%) in quantity and there was not much change in the import value either. Honduras remains the largest supplier accounting for 37% of the imports and supplying 31% more during the review period. Other suppliers who increasingly supply a bigger share to the fresh tilapia market are Colombia (+3.7%) and Mexico (+102%).

Meanwhile Colombian tilapia producer PezCo Aquafarming has started exporting its fresh fish directly to the USA in a bid to have a share in the growing tilapia market in the country. According to a company spokesperson fish was exported to the USA through distributors that were not necessarily Colombian or connected to the local production. They saw an opportunity to shorten the chain from farmer to end consumer  and to sell Colombian product directly to the importing country.

Imports of frozen tilapia (both categories) went up by 2.9% during the first nine months of 2013 from the same period a year ago. The frozen fillet category, which makes up the largest share experienced a 4.8% increase in volume with higher supplies from China but lower imports from Taiwan Province of China. Countries exporting whole frozen tilapia to the USA supplied less (overall -4%), apart from Thailand, which supplied more. The import value of whole frozen tilapia rose by 24% during the period under review. According to the National Fisheries Institute, per capita consumption of tilapia in 2013 declined to 1.430 kg from 1.476 in 2012.

Honduras

Projections by the National Aquaculture Association in Honduras (ANDAH) for exports of tilapia suggested that an increase of 5% was hoped for in 2014. From January to August exports had already reach USD 49.6 million in value, an increase of more than 22% compared with the same period in 2013 (USD 40.6 million). Export figures slowed in the last 4 months of the year, however, and were lower than in 2013.

Even so, estimations are that tilapia exports could reach USD 75 million, the highest in the last eight years.

Despite, or perhaps because of, the increase in exports Honduras has to import frozen fillets from China and Viet Nam to supply its internal demand. This gap in the local market is a clear opportunity for small rural farmers and producers to supply fresh tilapia fillets to the domestic market. The increase in tilapia consumption in Honduras has already created expectations for some suppliers who chose to market their products locally in 2015.

In October 2014 Honduras entered into a Free Trade Agreement with Canada, which will facilitate exports of tilapia from Honduras to Canada. Honduras is the larest exporter of tilapia to Canada, followed by Costa Rica and Ecuador.

EU

Demand for tilapia in Europe appears promising as imports of  whole frozen tilapia increased by 7.7%, although imports of frozen fillets decreased (-5.7%), during the third quarter of 2014 reaching a total of approximately 24 000 tonnes according to Eurostat.  Frozen fillet contributed a 56% share, with whole frozen tilapia making up the rest. China remains by far the largest supplier to this region taking a 67% market share. However, during the period under review, supplies fell by 21% from this source as China’s domestic market absorbed more of the local supply. Other producers in Asia tried to fill the supply gaps, including Viet Nam, Thailand, Indonesia, Taiwan PC, India and Bangladesh. Imports from these countries made up 33% of the total imports. EU countries taking the highest imports of tilapia were Belgium, the Netherlands and Poland.

Meanwhile, Regal Springs, one of the world’s largest producers of tilapia, has appointed a new sales representative in Europe, based in Vigo, Spain. The company has been focusing on pushing tilapia further into the northern and southern European markets. Tilapia is just beginning to be accepted in northern Europe but the French and Spanish markets will be more of a challenge. A company representative said that Regal Springs currently supplies around 5 million pounds (2 232 tonnes) of finished products to the European markets. The company foresees a trend toward supplying raw material for value added products (VAP).

Asia

With the approaching Lunar New Year, demand for live tilapia is expected to increase in Southeast Asia, particularly in Malaysia, Singapore and Thailand. In Singapore supplies come from imports; however, in Malaysia demand is almost entirely met by local production.

Recently, in India the Marine Products Export Development Authority (MPEDA) set a target to substantially increase the production of Genetically Modified Farmed Tilapia (GIFT), which will be valued at about INR 80 billion over the next five years in Andra Pradesh. This was announced at the first Indian Tilapia Summit 2014 organized by MPEDA on 18 December in Vijayawada. Production of tilapia is increasing in India after the government approved responsible aquaculture of tilapia in that country. Exports of whole frozen tilapia increased from 1 133 tonnes during the January-September 2013 period to 7 738 tonnes in the same period in 2014, national statistics sources report. Exports went primarily to African markets and the Middle East.

Although in Asia most of the local production enters the domestic markets, some countries do import tilapia. Hong Kong is the largest importer among Asian countries. National statistics report a total of 1 441 tonnes of frozen tilapia (whole and fillet) during the January-September 2014 time period. In addition about 800 tonnes of live tilapia were imported as well. Higher imports of tilapia also took place into the Republic of Korea, Malaysia, Singapore and Japan.

Outlook

The market is expected to continue at a steady pace. Demand is firm as tilapia remains an affordable protein source. The USA will be importing more in the coming months with the approaching Lent season when consumption of fish and seafood usually peaks.  In Southeast Asia demand will increase during the forthcoming Lunar New Year when tilapia is one of the products consumed during the festivities.