Tilapia - March 2014

01/03/2014

Strong festival demand for live tilapia during the Lunar New Year is keeping the current market strong in Asia. Prices at retail and in restaurant trade have strenghthened by 50% in January. To support this increased demand, supplies have increased in China, Malaysia, Taiwan PC, Thailand and Indonesia.

China

Damaging weather, disease and low prices during 2012 forced many farmers out of business. However, production remained stable in Fujian, Guangdong, Guangxi and Yunnan, which are the major producing regions. Since the latter part of 2013, demand for tilapia fry from farmers has  increased. Production in 2014 is expected to be an improvement over 2013. 

Total tilapia exports from China during the first nine months of 2013 were up 7% in volume compared with the same time period the previous year, reaching 268 000 tonnes. The most popular category, frozen fillet, declined in volume by 4% while significant increases were noted in whole frozen (+19%) and breaded (+16%) categories. In terms of value, exports experienced a 16% growth to  USD 925 900 million. 

According to national sources, during the first three quarters of 2013, exports of frozen fillets to the USA, China’s largest market, declined by about 18%, while Mexico imported 34% more.  Exports of frozen fillets to the EU markets increased, including Spain (+32%), Poland (+62%) and Germany (+19%).  Exports in this product category to Costa Rica, Peru and Colombia also grew, while exports to Iran and Southeast Asia (Malaysia, Vietnam and Thailand) increased by a total of 138%.  

For the first three quarters of 2013, the whole frozen category experienced a 39% increase in value to USD 196 million. This category also took a larger share of the total export volume at 36% compared with 32% in the same time last year. This growth was largely facilitated by higher exports to African and Middle Eastern markets. 

Alternative markets for China, such as in Africa, are being explored due to the stringent quality requirements the processing facilities must meet for export to the USA and EU. Supply constraints have also led processors to either reduce processing or focus on whole products to gain higher margin returns.

EU

The EU imported 24% more frozen tilapia fillets during the first nine months of 2013 compared with the same time period in 2012. This confirms the positive trend from the first quarter of the 2013 with close to 17 000 tonnes, up 28% from the same period in 2012. Supplies from Indonesia, Viet Nam and Thailand continue to contribute marginally to the EU’s imports while China remains the dominant source, supplying 99% of the market. Spain, Poland, Germany, the Netherlands and Belgium are the largest importers of tilapia within the EU.  

USA

Despite the overall decline in per capita fish consumption in the USA, popularity of tilapia continues to grow. According to the National Fisheries Institute, consumption of whitefish in the USA (cod, pollock, tilapia and pangasius) surpassed that of shrimp and rose by 6.2% in 2012. Together with pangasius, tilapia is the main driving force behind the growth in whitefish consumption in the USA in recent years. According to the USDA, the US market consumes close to 226 000 tonnes of tilapia a year, more than four times the amount only a decade ago. Demand for tilapia, including high value fresh fillets, has grown strongly. Indeed, from January to September 2013, imports of fresh/chilled (air-flown) tilapia fillets into the USA increased significantly by more than 40% in volume and 44% in value compared with the same period in 2012. During the January–September 2013 period, imports from almost all major suppliers were higher except from Ecuador, which dropped its shipments to the USA by 17% compared with the same time period in 2012. Fresh tilapia fillets from Honduras, now the number one supplier of fresh product, were up by almost 30%. Amounts from Costa Rica and Colombia increased by 86% and 47% respectively.

During the first nine months of 2013, a total of 137 300 tonnes of frozen tilapia were imported, down 8% from the same period the previous year. However, import values were up 17% to  USD 693 million. The frozen fillet category, which makes up the largest share of frozen tilapia product, experienced a 12% decline in volume due to significant drop in supplies from China, Indonesia and Honduras. In addition, much of the production in China is being diverted to African markets. 

Asia

In response to the Lunar New Year demand, prices of live tilapia have peaked in retail markets as well as in restaurants in Malaysia, Singapore and Taiwan PC. In Malaysia, live tilapia comes almost entirely from local sources, while Singapore generally imports its supplies. In Malaysia, ex-farm prices of live tilapia have risen from USD 2.8 per kg in November 2013 to USD 3.75 per kg in January 2014. 

As part of the Lunar New Year promotion, wholesale live fish retailers in Kuala Lumpur are offering fish bundle deals, which feature tilapia (sold as Red Pearl) and jade perch sold together. Prices for budles in January 2014 ranged from USD 37 per kg to USD 105 per kg. Meanwhile, live tilapia  are sold at USD 5.60 per kg and are expected to be 10–20% higher during the Lunar New Year week. In seafood restaurants, live tilapia is priced at USD 15–19 per kg. 

Taiwan Province of China

Taiwan PC produces an average of 70 000 tonnes of tilapia annually, 60% of which is exported to the USA, Canada, Saudi Arabia and Republic of Korea. In terms of frozen tilapia, Taiwan PC exported 24 189 tonnes in the January–September 2013 period, a 31% increase compared with the first three quarters in 2012. The majority of the frozen category was taken by whole tilapia at a 90% share. Exports of  whole frozen tilapia increased to almost all markets except for Saudi Arabia, Japan and Qatar. 

In recent news, the Fisheries Agency announced that Taiwan PC will be taking active steps to promote tilapia raised in the country.  Marketing plans include producing “films to introduce Taiwan’s high-quality tilapia production industry” to promote Taiwanese tilapia and help improve the image of the industry. Additionally, several of the Republic of Korea’s importers were invited by the Fisheries Agency and local industry groups to visit tilapia farms in Taiwan and were reported to have approved of the high quality of the fish farms. The Republic of Korea is a major importer of Taiwanese tilapia, mostly as frozen fillets.

Viet Nam

In recent years, Viet Nam’s tilapia exports have been recorded in small volumes. During January to September 2013, Viet Nam exported about 1 000 tonnes of tilapia to the EU and USA. The EU absorbed the majority, at 80%. 

In light of the challenges being faced by the pangasius industry, Viet Nam is now looking to tilapia production as another potential for export. It was reported that the An Giang province will be a hub to develop tilapia farming for export, with the Aquatic Breeding Production Center training farmers to produce fingerlings in the province and ensure sufficient seed supply. 

Brazil

Tilapia production in Brazil is growing at an average rate of 17% annually. According to The Ministry of Fisheries and Aquaculture (MPA), tilapia production exceeded 253 000 tonnes in 2011, showing strong growth compared with 2010 (+63%), when production amounted to 155 000 tonnes. The Ministry of Fisheries and Aquaculture (MPA) plans to invest BRL 252 000 (USD 107 860) in tilapia genetic improvements. The project aims to train researchers and develop new products for the Brazilian tilapia industry. 

Trinidad

There has been a significant increase in demand for farm-raised tilapia in Trinidad. This demand has been growing  since 2013, after the Ministry of Food Production embarked on a promotion campaign and introduced initiatives to open more markets for local farmers. There are also plans to boost production from farmers with not enough capacity to meet the growing demand. The SugarCane Feeds Centre (SFC) in Longdenville has developed an arrangment to purchase tilapia from farmers and process and market the fish themsevles. The SFC report that consumers have been buying more farmed-raised fish because of concerns regarding pollutants following the oil spills in December 2013. 

Outlook

Demand for tilapia, particularly for the live market,  has peaked in many Asian markets corresponding to the Lunar New Year’s high consumption period. In China, there is concern over rising competition from lower value species, namely pangasius in the frozen fillet segment. In turn, exporters are targeting alternative markets. However, overall tilapia production is expected to increase in 2014.

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