Production is expected to increase against steady demand in the global market.

Global supplies of tilapia are estimated to end higher in 2012 than in the previous year, although China, the largest producer, supplied less. African markets remain the main focus for whole frozen tilapia from China because demand is strong. The USA has managed to maintain its position as the world’s largest market for imported tilapia with imports increasing in 2012 compared with the decline in 2011. The farming of tilapia continues to attract attention from various developing countries in Asia, Latin America and Africa, where most of the production is absorbed by domestic markets. More and more, some leading companies are focusing on certified tilapia, which has been available in the market since August 2012.

China

The overall supply of tilapia improved in 2012, compared with the year before when the industry was hit by severe weather conditions, resulting in high mortality rates of fish. This led to a decline in frozen fillet exports to the major market USA, although there were marginal increases to African markets for the whole frozen category. The improved supply led to a 9.6% growth in 2012 export volume compared with 2011 and an improvement on the previous period where the increase was only 2.3%.

The frozen fillet category appears to have recovered from the shortfall in exports during 2011 as exports increased from early 2012. This category made up nearly 50% of the total Chinese tilapia exports, with the US absorbing 60%. Exports also increased to Russia and Ukraine and into relatively new markets such as Iran (+241%) and Kazakhstan (+124%).

USA

Bouncing back from an historic dip in imports in 2011, total imports of tilapia in 2012 were up by 19% in volume and 17% in value from 2011, drawing closer to USD 1 billion. Frozen fillet imports continued to increase and took a larger share (73% of total tilapia imports) compared with 69% in 2011. Imports of the whole frozen category experienced a significant decline (-61%) in volume from 2011 as supplies fell drastically from all major sources. China, the largest supplier to this market, is actively diverting exports of whole frozen tilapia to African countries where better prices can be found and where demand is also growing. Imports also increased from Colombia (+20%), possibly as a result of the free trade agreement (FTA) that Colombia and the USA signed in May 2011.

Meanwhile US imports of higher value fresh/chilled (air-flown) tilapia fillet in 2012 were more or less the same as the previous year, largely affected by a lack of consumer confidence as a result of the struggling US economy. The sharp decline in supplies from Ecuador (-14%) and Honduras (-22.2%) were well compensated for by higher shipments from Costa Rica (+139.1%) and Colombia (+11.8%). Total imports of fresh tilapia fillet into the USA last year were recorded as 20 595 tonnes valued at USD 146.9 million.

Prices of tilapia in the US market weakened in 2012 as imports recovered from the dip in 2011. Prices of the breaded fillet category were unchanged while the frozen fillet and whole frozen categories slipped back by 5.2% and 11% respectively. 

EU 
 
The African markets were the main drivers of the growth in the whole frozen category; exports were up by 3.3% from 2011. The prepared category, mostly made up breaded tilapia, was higher by 10%. The US is the leading market while increased supplies went to Israel and African countries.

In contrast with the US market, EU imports of tilapia in 2012 were on a decline compared with the positive trend in 2011. The market imported 16% less tilapia than a year ago. The import value was also down by 23%. China was the largest supplier to the EU markets, accounting for 88% of total supplies from external sources. Indonesia contributed 8% while other sources included Thailand, Viet Nam and Taiwan Province of China. Malaysia has regained its export status as a supplier with 112 tonnes following the lifting of an EU ban.

Within the EU, Poland, Spain and Germany are the largest markets. Much trade also took place within the EU member countries. However, during 2012 imports declined into most of the countries. The UK, France, Czech Republic and Greece, however, imported more tilapia compared with 2011. China was the leading supplier, although Indonesia was the leading supplier to the Danish market.

The market acceptability of warmwater fish is more or less assured in the EU, but at the same time, overall demand for fillet is unlikely to increase rapidly in the EU. However, considering the declining supplies from capture fisheries, farmed freshwater fish is most likely to gain a higher share in the fillet market.

Asia

The usual demand for fish during the Chinese Lunar New Year celebration peaked in mid-January 2013. As a result the prices of popular species such as grouper, Chinese pomfret, red tilapia, salmon, tuna and abalone, which are widely served during the festivals, went up by 20-50% in the regional markets. Chinese families around the globe, but particularly in the Far East and Southeast Asia, had re-union dinners while hotels and restaurants offered a variety of banquet menus.

Exports of frozen whole tilapia and frozen tilapia fillet from Taiwan PC in 2012 were down to by 4.3% to 29 226 tonnes from the same period in 2011, with the whole frozen category accounting for 86% of total exports. Higher supplies were directed to the Middle East markets such as Saudi Arabia, Kuwait, Bahrain, Qatar and the UAE, which made up 36% of the whole frozen category export share. Exports declined by 11% to the USA, which is the main market. Exports of frozen tilapia fillet went up marginally by 2.8% from 2011 while the export value rose by close to 12%. Exports of sashimi quality tilapia filllet (izumidae) to the Japanese market were higher by 9.27% at 165 tonnes. Average export prices to Japan during 2012 were USD 11.14/kg compared with USD 10.50/kg the year before.

Supplies of tilapia are expected to increase from Indonesia as the government places further emphasis on developing the industry. The Ministry of Marine Affairs and Fisheries (MAFF) reports that tilapia production in 2011 amounted to 567 078 tonnes and an estimate of 850 000 tonnes is predicted for 2012. MAFF is targeting a production of 1.1 million tonnes in 2013.

As Filipino Catholics began their observance of Lent on 13 February, fish prices went up in some markets in Metro Manila. Demand for fish usually increases at this time. In Quezon City, vendors put up prices of some fish products by as much as PHP 10 (USD 0.25) per kilogram. In early February, fish prices in some markets in Metro Manila had gone down because of the warmer weather, which vendors said allowed fishermen to catch more fish. Tilapia was sold at PHP 90 (USD 2.2) per kilogram. The Philippines produced 257 385 tonnes tilapia in 2011, which represented 10% of the total national aquaculture production.

In India, where Nile tilapia farming was introduced in recent years, the availability of farmed tilapia has increased and demand is growing in the local market. Reportedly, the fish is able to compete with pomfret, one of the most popular species.

Certified Tilapia

The demand for certified tilapia is growing in European markets. Malaysian tilapia producer Trapia Malaysia has been certified by the Aquaculture Stewardship Council. The company uses GenoMar Supreme Tilapia fingerlings from its onsite hatchery next to Lake Temenggor in the north peninsula of Malaysia. The certified fish are sold as frozen fillets and loins to North America, Europe and Asia, and as live and fresh in the local market. The farm is EU approved and also holds GlobalGAP certification, awarded in 2010. The processing plant holds BRC certification and chain of custody certification from both GlobalGAP and ASC.

Canadian company PC Blue Menu’s tilapia certified by ASC is now available at select Loblaw locations in Canada. Loblaw is the first grocery retailer in North America to offer the ASC-certified product in stores and is part of Loblaw’s commitment to source 100% of all seafood from sustainable sources by the end of this year. The company also plans to introduce additional ASC-certified products, including pangasius and tropical shrimp, later this year.

Outlook

Supplies will increase moderately in 2013 as China slows down production and other countries expand farming activities. The USA will continue to lead as the world’s largest importer while domestic markets in major producing countries, including China, will be absorbing supplies as well. African markets, too, will be a focus for Chinese exports as long as demand is strong. Global demand in general will continue at a steady pace.