26/10/2007 - Global pelagic market meltdown

Large Pacific mackerel was selling for USD 0.56 kg in Thai supermarkets in October. (Photo: T. Engoe)

WEEKEND FEATURE: Global pelagic market meltdown

WORLDWIDE
Friday, October 26, 2007, 23:50 (GMT + 9)


ICES has announced another bumper catch of Atlanto-Scandian herring for 2008, and even with a large percentage of the Atlanto-Scandian herring caught mainly off Norway, in Icelandic and Faroese waters, it is finding its way to fishmeal plants, as the world supply continues to rise in coming months.

Bumper harvests of Pacific mackerel have made the Japanese market nearly free of imports of Atlantic mackerel. They have instead started to push large volumes of cheap Japanese-caught mackerel into Asian markets.

Prices are and have been falling as mackerel and herring has been pushed onto existing markets, many already showing a glut, raising the question of whether the global market for small pelagic fish could be facing a meltdown.The other possibility is that increased resources in marketing and increased purchasing power of many emerging economies could make the pelagic industry turn the increased supply into profit.

Japan is expecting another year with very high catches of Pacific mackerel, as is South Korea, which is heavy handedly dumping mackerel onto other Asian markets. Retail prices in Thailand for Pacific mackerel during periods with discounted prices have been below USD 0.60 per kilo in large supermarket chains.

The table shows estimated imports for 2007, and includes sardines, sardinella, herring, mackerel, horse mackerel and other small pelagic fish. The increase in net imports by the world's leading importers is estimated to be around 2.5 million tonnes in 2007. This is a very large volume. The increased supply of herring alone this year represents around 10 per cent of the net imports by the main importing nations, and in addition remains the increased catches of Pacific mackerel, mainly by Japan.

Estimates for 2007
Net import of small pelagic fish
Country
Tonnes

Nigeria
370,000

Russian Federation
360,000

Netherlands
260,000

Japan
240,000

Ukraine
240,000

Ghana
220,000

China
180,000

Cote d`Ivore
110,000

Cameroon
80,000

South Korea
70,000

Egypt
70,000

France
60,000

Belarus
60,000

Kazakhstan
60,000

Romania
60,000

Malaysia
60,000

Total net import
2,500,000



Source: FIS.com, FAO, Eurostat and Japanese Customs
China market with potential
China is a small importer of pelagic fish if taken in to consideration it being the most populous country in the world. It is difficult to obtain reliable numbers. But import of herring is estimated to between 15,000 and 18,000 tonnes. The net import of all pelagic fish species accumulated is only 180,000 tonnes. Not much for a country the size of China. This is both because of the country’s own catches, and pelagic fish not traditionally being consumed in large volumes in most of China.

In addition there is herring produced from roe for the Japanese market, while whole herring is imported to China in transit. The herring roe is extracted and sent to Japan, while herring meat is sold locally.

Experience garnered from other markets has pointed to the Chinese market potential, but there is a need for large resources into marketing.

The Nippon factor in Thailand

The large Big-C supermarket chain in Thailand introduced herring into their fish assortment one year ago. A spot test undertaken some months ago by FIS.com revealed herring as being appreciated by Thai consumers, but were not purchasing the produce at the supermarkets; they didn't have a clue about the taste of the fish “plaa herring.”

Pacific and Atlantic mackerel have also been introduced to the Thai market, with great success. The product was called “plaa saba Nippon”, or Japanese mackerel.

Mackerel was riding high on the market and touted as Japanese, given that food from the Nippon is regarded as high quality by Thailand. This made “plaa saba Nippon” all the more popular with the high end market seafood segment in Bangkok. Consumption increase in the countryside, however, was slow, and herring was just herring, failing to conquer this market segment, despite riding on the back of trendy Japanese food.

The marketers of herring may believe it should have success just because of the low price of the fish, but herring will need more PR. If given the chance, it may sell in the tens of thousands of tonnes in Thailand within a couple of years.

The large West African markets

The West African nations of Guinea Bissau, Ghana, Togo, Benin, Nigeria, Cameroon, Gabon, and the Republic of Congo all import large volumes of small pelagic fish, as does their northern neighbour, Egypt. An estimated one million tonnes finds it way to these countries in total. Even a country like Angola, who has a long coastline with rich resources of pelagic fish, is an importer.

These countries import herring, blue whiting, and horse mackerel from Europe, mackerel and herring from the United States, sardine, sardinella, mackerel and horse mackerel from Morocco and Mauritania, and the list is longer.

The West African market, as well as the large Egyptian market, are not buying much in the upper end with regard to size and quality. The fish is staple food for populations with low incomes. With regards to sardinella the West Africa is the main market.

There is a big difference in the West African market and many other potential markets round the world. They are large consumers of sardinella and sardine, which are very similar to herring.

To introduce herring to consumers is a much more easy task than getting people in Laos or North China to try the fish. So even if the Norwegian Seafood Export Council has sponsored marketing campaigns for herring in China, European exporters of herring will be knocking on the doors to traditional sardinella markets. Sardinella is still competitive in price when considering large fish, but consumers in West Africa will be willing to buy smaller herring at a price at which sardinella is becoming expensive even if it is larger.

Unusual large herring

So far this autumn purse seiners and trawlers that fish herring in the Norwegian Sea have landed unusually large hauls of herring of 300 grams or more. Some catches have even had substantial share of herring around 400 grams. However, this fish will not end up in West Africa. Instead it heads mainly to Russia and Eastern Europe. The smaller herring of four to five fish per kilo, and even smaller, will be sold to markets in West Africa and Egypt.

Herring prices, if they fall, will have an impact on sardinella and sardine prices. Especially in the Egyptian market, the competition will affect the imports and prices of Moroccan sardines.

The catches of sardines off Morocco are reportedly down this year, making it easier for the herring to increase its market share as prices decrease. Herring is by most consumers regarded as superior to sardinella, but also as equal to sardines. If the enormous herring production forces sardinella prices down this will have a very negative impact on the profitability of the pelagic trawler fleet fishing off of North Africa. Sardinella is the main share of their catch.

Herring and sardinella together

Interestingly, the Dutch exporters have historically dominated West African markets. One reason is the large number of Dutch-controlled vessels trawling sardines, sardinella, mackerel, and horse mackerel off Morocco and Mauritania. Some of these companies operating these trawlers also catch herring in the Northeast Atlantic. They will fight to keep Norway from getting a strong foothold in these markets, even if it might cost them dearly, as they have no alternative markets for the sardinella.

Herring caught early in the autumn is suitable for some markets. If a market is to be developed in Southeast Asia, the herring caught early in the year stands a much better chance to win the hearts of the population. They prefer to grill the fish whole, and if there is a roe inside, all the better.

The Russian wild card

Large herring and mackerel from the Northeast Atlantic have traditionally received a premium price, but this year there is an unusual high supply of very large herring, and also of small mackerel. The Russian market especially welcomes large herring. By the end of this year Russian imports of herring could surpass 200,000 tonnes. But the increase comes at a price, in fact a falling price. Total consumption of Atlantic herring in Russia in 2007 will be around 500,000 tonnes, coupled with probably around 200,000 tonnes of Pacific herring.

So, the bumper harvest of herring to be caught next year adds to the already witnessed largest herring fishery in modern history taking place in the Northeast Atlantic and Norwegian Sea. In Norway, especially, there are very large frozen stocks of herring.

Russian imports have increased fast, but not fast enough to stop stocks from building. It is possible the Russians have imported more than usual because of increased demand, or they could be stocking up as there have been strong rumours of the government slapping restrictions on imports by enforcing much tougher sanitary rules. The chance of this happening is dissipating, however, and will now be interesting to see whether or not the demand from Russia will continue as strong as previously.

Russia is the wild card on the global herring market. It is by far the largest market for Norwegian herring. For 2007 Russia has by end of week 41 imported 111,850 tonnes of whole frozen herring out of a total exported volume 235,481 tonnes.

If the current trend continues it will probably amount to 50 per cent or more of the total Norwegian production of frozen whole herring that end up on Russian meal tables. Coupled with the volume of herring fillets, this is a reality that Russia is currently keeping the prices on herring on the up and up. If the demand falls sharply, beginning of 2008 may end up with a dramatic fall in the price on herring. However, even if the demand falls to a normal level this would increase pressure on herring prices.

Fillet prices halved

Early 2002 witnessed Norwegian exporters generate over NOK 12.00 (USD 2.23) per kilo for frozen herring fillets. Current price is around NOK 6.60 (USD 1.23) per kilo. Take in to considerations inflation, and prices are down more than fifty per cent. In comparison have prices on whole frozen herring been very stable. But export figures does not show the whole truth. It does not differ between large and small herring. In US dollars that are a widely used currency in the fish trade does the picture look a bit different. A low dollar is affecting exporters in many countries. Some of the importing countries have their currency pegged to the dollar. If the fall in the dollar is to be recovered by increasing prices, is there a risk of the markets reducing the volume.

So where is the world prices on small pelagic fish heading? They seem to be set for a fall, though it stands to be seen whether it will prove to be a dramatic decline. So far Russian demand has saved prices from collapsing or at least falling towards levels that make it as profitable to land the fish for fishmeal production as for human consumption.

If Dutch and Norwegian exporters spend their marketing money wisely, not battling each other by under-bidding in existing markets, prices could remain stable. The first half of 2008 will show whether the global market is able to absorb an increasing supply or we are headed for a global pelagic price meltdown.

By Terje Engoe
www.fis.com

12/10/2007 - Seafood fraud: Something fishy going on

Many species have distinguishing marks or specific origins, and an informed consumer can watch for the marks to ID the species. (Photo: FIS)

WEEKEND FEATURE: Seafood fraud: Something fishy going on

UNITED STATES
Friday, October 12, 2007, 23:50 (GMT + 9)


Disguise, swindle, or outright fraud, call it what you may, there is something going on with the seafood trade, and is well known to the industry, by any name. The Federal Drug Administration (FDA) in the United States published a very detailed explanation of hoe illicit activies are carried out, and have given advice on how to uncover and protect against them. FIS.com considers the report essential reading for the industry, and is publishing the report in full:

Fresh fish for dinner tonight. Twelve dollars a pound is a bit pricey to experiment with a new recipe, but on ice in the market, the fish labeled "red snapper" looks fresh and inviting. So you buy it.

But how do you know the fish really is red snapper and not rockfish, its look-alike that generally sells for about USD 2 a pound? Such species substitution — selling a cheaper fish as though it were a more expensive one — is one of several kinds of economic fraud involving seafood sales, which troubles consumers, reputable dealers, and the FDA.

Because seafood is such a high-value product, it is a particularly attractive target for fraud. Overbreading, another form of economic fraud, has consumers paying shrimp prices for bread crumbs, and overglazing charges lobster tail prices for ice. Abuses such as these hit consumers squarely in the wallet. FDA has recently begun focusing more intensely on its mandate to reduce economic fraud in the seafood industry. In 1991, the agency established the Office of Seafood, with a 60 per cent increase in funding for seafood inspection, including an increase in resources for field offices.

The seafood industry doesn't like economic fraud either. A 1985 National Fisheries Institute survey report said, "There was general agreement among the industries (processing, distributing and importing firms) as well as retailers and restaurateurs that there is widespread abuse of overglazing and overbreading of fishery products, inaccurate net weights, and species substitution." In a presentation at the Atlantic Fisheries Technology Conference in 1990, the National Marine Fisheries Service said, "No matter what the reason, industry’s desire for a level playing field to combat fraud is strong, and consumers want full value."

Though there are reported incidents, the extent of seafood fraud is not well documented. Few databases are designed specifically to track economic fraud. The ones that do usually include data from the National Marine Fisheries Service seafood inspection laboratory (which analyzes samples upon request), state-directed surveys, and weights and measure programs, such as that of the US Department of Commerce.

Fraud is not always intentional. It can occur because of misunderstanding or lack of information, or it can be an honest mistake by a grocery store if the store bought a misrepresented product. Ignorance of the mislabeling does not excuse the violation, however, and FDA holds the seller responsible.

Mary Snyder, chief of the policy guidance branch of FDAs Office of Seafood, says the agency is doing what it can to educate retailers so they can guard against fraud. FDA advises retailers to be specific when ordering seafood and encourages them to take the initiative to learn about the products. In addition, FDA has put retailers on notice about the agency's emphasis on enforcement through letters warning about economic fraud. As a result, some supermarkets advised their seafood buyers that they would report abuses to FDA.

What Species Is It?
This question doesn't have to come up if a product is properly labeled. But it does, because species substitution is likely the most widespread abuse. Speaking to the National Fisheries Institute in April 1991, FDA Commissioner David A. Kessler, M.D., said: "There is no place in the seafood industry for those who substitute a less expensive or less desirable species of fish for one that consumers value more. We will seek out those who perpetrate fraud — and we will bring them to justice."

FDA is reeling in abusers making big profits. For example, in May 1992, FDA detained 1,200 pounds of fresh rockfish from Canada, invoiced at USD 1.50 per pound. According to FDA's Seattle district, it was labeled red snapper, the federally recognized name for a species that comes from the southern Atlantic and the Gulf of Mexico. FDA estimates the firm could have realized an excess profit of about USD 12,600 on that shipment alone over what it would have received if the fish had been properly labeled. In another case in 1989, FDAs Chicago district seized a 45,000 pound lot of oreo dory (average price USD 2 per pound), imported from New Zealand, bound for Ohio markets labeled as orange roughy, which also comes from New Zealand but generally sells for USD 6 per pound. FDA estimates the firm could have realized an unfair profit of about USD 150,000.

"It's not always possible to 'see' that a lesser product has been substituted for another," says Snyder, who is also FDA's species identification expert. Sometimes, FDA regulators must use laboratory verification such as identifying the fish scale and patterns, or isoelectric focusing, a technique that identifies a species by analyzing the pattern of proteins in the flesh. When charged with an electric current, the proteins form a unique pattern for each 7 species. The pattern from the species in question is then compared with the known pattern for that species, very much like comparing fingerprints.

Many species have distinguishing marks or specific origins, and an informed consumer can watch for the marks or ask the fish market manager where the fish comes from. Consumers can also check one of many well-illustrated seafood cookbooks. These have information on what species look like, and how to tell the difference between substitutes and the real thing. Usually there's also information about the texture and taste of a species. If a product isn't as expected after it's cooked, FDA advises consumers to discuss the problem with the fish market manager where the product was purchased.

To guide species identification, FDA maintains a seafood names list, which is being expanded this year to include shellfish. The list is used mostly by industry so it can uniformly label its products using FDA acceptable market names. Developed in co-operation with the National Marine Fisheries Service, the list includes over 1,000 species currently sold in the United States or that have a strong potential for sale here. It does not list endangered species nor those prohibited for sale. For example, escolar, a fish commonly known as "castor oil fish," was deleted from the new edition after it was reported to cause diarrhea in many consumers.

The seafood list shows the acceptable market name, the scientific name, and any regional names. Regional names can cause confusion, sometimes deliberately, other times inadvertently. For example, rockfish is called "Pacific red snapper" in California. People in California know what to expect when they see "Pacific red snapper" but in other parts of the United States, consumers only know red snapper as a highly valued fish from the Gulf of Mexico. FDA does not allow rockfish sold across state lines out of California to be called anything other than "rockfish."

Sometimes regional names for fish are "made up" to make the fish sound better or of higher value, Snyder says. She gives the example of tilapia, a common imported fish that is also bred in the United States and other countries through aquaculture (on fish farms). Because it is also found in the Sea of Galilee in Israel, it traditionally has been called "St. Peter's fish," for the biblical fisherman of the New Testament. Importers have tried bringing it into this country labeled "St. Peter's fish," but FDA has informed them that it must be labeled tilapia.

Colors Added to Fish Feed
Some aquaculturalists have begun using the color additives canthaxanthin and astaxanthin, both derived from beta carotene, a vitamin A component that imparts an orange color. Canthaxanthin is approved for use in chicken feed — the color gives chicken flesh the yellow cast that some people find desirable. Astaxanthin has not yet been approved for any food or feed use

When used in feed for rainbow trout, these color additives turn trout flesh the color of salmon, a much higher valued species. In addition, some aquaculturalists grow the fish to larger than trout size, and then market it as "salmon trout." There is no such species and this is not an acceptable market name, Snyder says.

Color additive experts in FDA's Center for Food Safety and Applied Nutrition are aware that the regulation listing canthaxanthin to color food may lead some to think that it may be used in fish and fish feed. FDA did not intend to list this color additive for these uses. The agency is currently working on a regulation that would make it clear that the use of regulated colors in animal feed with the intention of coloring the animal flesh must have a specific listing for such use.

Water Added
Sodium tripolyphosphate (STP) is one of a family of phosphates the seafood industry may use as humectants, substances that maintain moisture in products. STP is used to process scallops, shrimp and lobster tails.

The phosphates are currently listed by FDA as "generally recognized as safe," a classification that means a food additive may be used for certain purposes. However, FDA is concerned that the seafood industry is using STP in ways that constitute economic abuse, especially in scallops. Atlantic sea scallops, for example, usually consist of 75 to 79 per cent water. They can lose a considerable amount of their moisture after the shellfish are harvested and the meat is removed from the shell.

Soaking in an STP-water solution keeps scallops from losing their natural water. Prolonged soaking, however, can result in Atlantic sea scallops with excessive water, adding to the product's total weight. Inspections of processing plants by FDA's Boston and Baltimore districts showed that some scallop processors were soaking the shellfish for up to 36 hours, resulting in a 4 to 5 per cent weight gain.

Consumers could be defrauded into buying water-augmented scallops at the same price per pound as scallops that are naturally larger. FDA met with industry representatives to discuss the use of STP. The industry agreed to determine the effects of various treatment times and STP concentrations on scallops, and to determine whether STP soaking provides benefits beyond restoring water loss, such as improving the texture of the scallops.

Excessive water has also been found in shelled oyster containers. FDA is concerned that this practice adulterates the product because the water is absorbed by the oysters, increasing their apparent weight. The agency is currently revising the regulation that defines the number of oysters and amount of liquid.

FDA does not object to the industry practice of using a frozen glaze of water to protect products such as frozen shrimp and lobster tails from freezer burn. Such glaze, however, cannot be pan of the net weight. FDA has sent warning letters to processors and trade associations saying that the agency will take regulatory action where evidence of this practice is found.

Over-breading and Fresh Thawed
It's disappointing to open a frozen seafood package and find more breading than fish. In 1991, the Connecticut state government surveyed breaded frozen shrimp products and found an average of 33.5 per cent shrimp — the rest was bread crumbs. The FDA standard for breaded shrimp requires that the product contain at least 50 per cent shrimp. The method for breading is included in the standard.

FDA is taking enforcement action against processors who overbreed. For example, in March 1991 in Mississippi, FDA seized 1,788 pounds of frozen breaded shrimp, valued at USD 5,000 (USD2.80 per pound), which contained only 41.4 per cent shrimp. With an 8.2 per cent shortage of shrimp, FDA estimated the firm could have realized a profit excess of USD 300 at the consumers' expense.

Sometimes, fish in the market is labeled "previously frozen." FDA allows the sale of thawed fish that has previously been frozen, but it must be labeled as such and cannot be labeled fresh. Fish spoils more easily than most flesh foods, and even in ideal storage conditions, it has a very short shelf life in its fresh condition. Therefore, to protect the product, many processors freeze fish as soon as possible, often at sea. This can be an excellent product. However, if a fish has previously been frozen and is then thawed for sale, the label must state that the product was previously frozen.

Is It Really Caviar?
Unless it's roe (fish eggs) from the sturgeon species, it's not caviar, FDA says in a policy established many years ago. Sturgeon roe sells for about USD 35 an ounce; roe from other species such as salmon or lumpfish sells for USD 1 an ounce. Two years ago, FDA issued a warning letter to a firm that had labeled whitefish roe as "American Golden Caviar."

FDA is working to protect consumers from fraudulent practices in the seafood industry. The agency gives talks to industry groups, displays at trade shows, and has open exchanges with state regulatory agencies, as well as increased training for its own field investigators. And a hot line is available to answer consumer questions. But FDA emphasizes that the best defense against fraud is the educated consumer.

How to Avoid Seafood Economic Fraud
To get the best value for your money when buying seafood, it's important to know what you're buying. Be wary of unusual bargains — some seafood is seasonal. If there is a considerable difference between the price of a fresh product and what you are accustomed to paying, it could be that it is from the last season's frozen inventory. Buy from a reputable dealer. And if the fish you choose looks or smells different from what you expect, discuss it with the fish market manager.

Look for firm, shiny flesh that bounces back when touched. If the head is on, the eyes should be clear and bulge, and the gills should be bright red. The fish should not smell "fishy" — it should smell like a fresh ocean breeze.

It's easy to miss the telltale signs of species substitution. Sometimes, taste or consistency is the only way to detect it. If you feel you have purchased something different from what was represented, tell your fish market manager.

Here's how to distinguish some common species:

Haddock has a dark lateral line along the skin surface.
Skinless cod fillets have a distinctive white papery membrane along the belly and a white line of fat along the lateral line of the fillet.
Shark and swordfish look alike, but shark has a dark streak of flesh in the center and rough skin along the edge.
Red snapper comes only from the southern Atlantic Ocean and the Gulf of Mexico (ask your retailer where the snapper originated).
Orange roughy comes only from Australia or New Zealand and always arrives frozen. It may be sold thawed, but it must be labeled as previously frozen.
Scrod is not a type of fish. The term originated in the Boston area to describe the catch of the day. It is a fish under two and a half pounds that is either cod, haddock or pollock. Such fish should be labeled in the market or listed in a restaurant as "scrod cod," "scrod haddock," or "scrod pollock."
The US Food and Drug Administration (FDA)
www.fis.com

06/10/2007 - Investors salivating over the poor man's fish

Tilapia production for export could grow without affecting the volumes produced for domestic consumption. (Photo: T. Engoe)

WEEKEND FEATURE: Investors salivating over the poor man's fish

WORLDWIDE
Friday, October 05, 2007, 23:50 (GMT + 9)


Tilapia has been considered a species mainly for poor farmers in the third world for a very long time. The members of the American Tilapia Association, which have long understood the importance of the resource, are eyeing its potential on the world market while recently the management of the world's largest salmon farming company, Marine Harvest has told the market that they are looking for new species to farm, and tilapia was mentioned as one of the species being considered.

Cheap to produce

The problem with the tilapia trade is the low price it commands, but many seem to forget that the production cost is also very low. Where salmon needs fishmeal and fish oil to grow on, tilapia is a vegetarian with feed costing just a fraction of the cost of salmon feed. If fact, too high fat content in tilapia feed will have a negative effect on the taste and texture.

Tilapia is an herbivore feeding on algae and even bacteria growing in water. Some farmers that are not producing for export are fertilizing the tilapia ponds with excrement from pigs or poultry. The excrement increases the growth of algae, and the algae is then eaten by the tilapia. In this way the fish also solve an environmental problem in many rural areas.


Tilapia is an herbivore feeding on algae and even bacteria in water. (Photo: T. Engoe )


Salmon is reported to have disease problems worldwide. Millions of dollars are spent on antibiotics, vaccines, and veterinarians. Tilapia meanwhile is not fussy. It will accept periods with very low water quality, and it is nearly free of any diseases. This is also the main reason for why China, the world's largest producer of tilapia have had no problem with their tilapia export. There is rarely any need to feed the fish with antibiotics or any chemicals.

More than 2 million tonnes

Last year was 2,350,000 tonnes of tilapia produced worldwide. Only carp is farmed in larger volumes, but no other farmed fish species has been creating more jobs and values in third world countries than tilapia.

In 2000 was tilapia the 11th most popular seafood in United States, with tuna, shrimp, pollock, salmon, catfish, cod, clams, crabs, flatfish, and scallops all ranked higher in consumption and popularity.

In 2001 it overtook the position of scallops, while in 2002 it had surpassed flatfish, and continued swimming upwards in the ranking. In 2003 it left clams behind, in 2004 did it make it leaped passed crab and cod. Finally, in 2006 it became more popular than catfish and is now the fifth most popular seafood in US where it retails for close to USD 20 per kilo for whole fish. In Europe the fish is increasing fast in popularity, and is now a regular species in most large fish displays in United Kingdom. Tilapia is penetrating market after market at a steady pace.

Investors moving into tilapia

Tilapia is mainly farmed in labour intensive economies at a low cost, where it is cheap to fillet and add value to products. In Thailand the mighty CP Group has contracted farmers all over the country, and have set up feed mills for fish feed in Thailand and a number of other Asian countries.

The Norwegian life science company Genomar AS is a leader in genetic selection of tilapia. They have branches in Philippines, China, and a number of other countries. Tilapia is on the verge of going from being a fish consumed by the economically impoverished to a fish being eyed by large corporations and investors.

AquaChile has invested in tilapia farms in Panama through the subsidiary Aquacorporacion Internacional in Cost Rica. The new planned farm will more than triple the Panamanian production of 5,500 tonnes of tilapia.

India – the next giant

The next and probable giant in tilapia may well be India. Large areas of the country have climatic conditions that are ideal for tilapia farming. Indian shrimp farmers dealing with white spot disease also have the possibility of converting to tilapia. No large investments are needed to convert a shrimp pond to a tilapia pond.


No large investments are needed to convert a shrimp pond to a tilapia pond. (Photo: T. Engoe )


Only a small share is exported

Most of the global tilapia production is consumed be the local population in the areas where it is farmed, but as investors are showing interest in the fish, more processing facilities are being built. Farms are modified and farming techniques are improved. The production of tilapia could grow very much without influencing the volume of tilapia available for local consumption.

For now, China is the world's largest exporter of tilapia. They doubled their export from 90,356 tonnes in 2004 to 181,831 tonnes last year. Still, less than 25 per cent of the Chinese tilapia production is exported.

China: Export of tilapia, product weight


Destination
2004 tonnes
2005 tonnes
2006 tonnes

United States
62,860
80,853
104,668

Mexico
15,884
16,343
32,894

Russian Federation
19
22
5,530

Israel
678
1,287
3,694

Germany
-
673
1,740

Hong Kong
1,016
842
1,702

Belgium
-
1,124
1,371

Puerto Rica
515
852
1,292

Dominican Republic
117
493
1,019

Canada
1,096
1,103
992

Others
8,171
9,266
26,929

Total
90,356
112,858
181,831



Source: Eurofish

United States to import 180,000 tonnes

This year tilapia import s to the US reached 47,600 tonnes during the first quarter. The main increase was in the import of frozen fillets, which increased from 14,200 tonnes first quarter 2006 to 25,100 this year.

The total import to US reached 158,300 tonnes last year and there is no reason to believe the increase will let up, as tilapia is both competitive in price and has a quality that is appreciated by American consumers. China and Indonesia are the largest sources of frozen tilapia fillets imported to US, with Thailand being the third largest source. China is also dominating the source of frozen whole tilapia, with Taiwan the second largest source. The UN Food and Agriculture Organisation has estimated US imports to reach 180,000 tonnes for this year.

From whole fish to value added products

What is more interesting than just total volumes imported or exported, is the change in presentation. In 2004 China exported 7,964 tonnes of tilapia characterised in export statistics as “preserved tilapia.” According to Eurofish this is considered value added tilapia, such as breaded tilapia fillets and tilapia fillets with the addition of lemon, pimento, herbs, or other spices. Last year 98,862 tonnes of the Chinese exports were “preserved tilapia”. The export of frozen whole tilapia increased from 43,840 tonnes to 46,901 tonnes from 2004 to 2006. Tilapia is becoming an important raw material for Chinese processors, not just a commodity.


Tilapia is becoming an important raw material for Chinese processors. (Photo: AARM)


Great potential in many countries

The development seen in China, on a different scale, can be replicated in many countries around the world. Brazil, Burma, India, and many African countries have large freshwater resources suitable for tilapia farming. They are now waiting for the investors who in addition to money have knowledge about processing and marketing. Marine Harvest has made their intentions public. AquaChile has already begun tilapia growing in ponds. Many will follow.

By Terje Engoe
www.fis.com