Tilapia Marketing in the Americas

1. Tilapia Marketing in the Americas Kevin Fitzsimmons, Ph.D. Professor - University of ArizonaSec. / Tres. - American Tilapia Association President - US. Aquaculture Soc. Chapter of WAS August 2001

2. Tilapia introductions to the Americas • Oreochromis mossambicus first in the Caribbean in 1949 by C.F. Hickling • To United States in 1954 • Oreochromis aureus introduced in 1957 • Throughout the Americas by 1970 • Oreochromis niloticus into Brazil 1971 • Red strains developed in 1970’s and 80’s • Oreochromis niloticus spreads in 1990’s • Total production of 257,000 mt in 2000

3. Production widely distributed around the Americas. • Tilapia introduced to every country • Tilapia, mojarra, St. Peters fish, Jamaican freshwater snapper, Cherry Snapper • Used in hundreds of recipes • Live, Whole, fillets, fresh and frozen, smoked

4. Supply and Demand • Supply primarily from tropical countries • Demand is in producer countries and US • With rapid increases in supply, demand must increase at least as fast to support price.

5. Major Tilapia Producers in the Americas (for year 2000) • Mexico - 102,000 metric tons/year • Brazil - 45,000 mt / year • Cuba - 39,000 mt / year • Colombia - 23,000 mt / year • Ecuador - 15,000 mt / year • Costa Rica - 10,000 mt / year • USA - 9,072 mt / year • Honduras - 5,000 mt / year

6. Production of Tilapia in the Americas 2000 (by volume)

7. Major Tilapia Products in International Trade • Costa Rica - fresh fillets • Ecuador - fresh and frozen fillets • Honduras and Jamaica - fresh and frozen fillets • Mexico, Brazil, Colombia, Cuba USA - strong domestic demands, minimal exports

8. Estimated cost of production • Brazil, Ecuador, Cuba - $1.10 / kg • Costa Rica, Jamaica - $1.20 / kg • Colombia, Mexico - $1.25 / kg • USA - $2.00 / kg • Canada - $2.10 / kg

9. International markets • Costa Rica was first major exporter • Ecuador is now major exporter from the Americas • Honduras has rapid expansion • Colombia, Cuba, Brazil and Mexico are supplying strong domestic markets • Prices on international markets will not increase from present levels.

10. International markets • Ecuador has passed Costa Rica as supplier of fillets to US • Ecuador integrating with shrimp production • Colombia and Mexico were exporters to US, but exports levels decreased while production increased

11. Tilapia production and Markets in Mexico • Production in most states of Mexico • Intensive in north, lake ranching in south • Strong domestic markets; on ice, fillets in grocery stores • Will eventually develop export markets.

12. Tilapia production & Markets in Brasil • Production in Southeast and Northeast • Red tilapia in Southeast for fee-fishing and food • Cage farms allowed in NE reservoirs. • Tilapia leather industry • Jump in interest with ISTA 5 in Rio. • Will eventually develop export markets.

13. Tilapia in Colombia • Before 1980, Colombia had strong domestic market • Developed export trade to US • Domestic market has grown so strong that exports were suspended • Colombia imports tilapia from Venezuela and Ecuador

14. Tilapia aquaculture in Colombia

15. Tilapia production in Ecuador • Replacing shrimp because of white spot disease • Using shrimp infrastructure • Exporting to US and EU • Will they revert to shrimp if disease is controlled?

16. Tilapia aquaculture in Ecuador

17. US Tilapia consumption (mt)

18. Source of US Tilapia supply 2000 (by volume)

19. US. Tilapia imports 1993-2000

20. Value of tilapia products imported to U.S.

21. Tilapia Production in the US = Live Sales

22. International market changes • Increasing domestic consumption in producing countries especially Colombia, Brazil, Mexico, Costa Rica • Colombia starting to export again, Mexico and Brazil will follow

23. Current International Market Trends • Increase in demand for all forms of tilapia • Demand increase will be greatest for fresh fillets • Prices have been constant for several years and will remain stable, will not increase with inflation.

24. Current International Market Trends • US and EU growers will concentrate on live sales and highly processed forms • Latin America and Southeast Asia will be primary US suppliers • Latin America, Caribbean and Africa will supply EU

25. Marketing - Push vs. Pull • Push = get distributors to take more product • Pull = get consumers to demand more product • Push = often more expenses with product, prices and profits lower • Pull = advertising, higher prices and profits

26. Marketing - Push • Lower prices • Advertise in business magazines • Add value to product -processing • Better bulk packaging • Other sales incentives

27. Marketing - Pull • Advertise to consumer • Advertise in general interest magazines • Product placement - movies, TV, books • Value adding to product • Better retail packaging • Point of sale recipe cards & promotions • Testimonials

28. Internet Tilapia Market sites

29. Internet Tilapia Market sites

30. www.tilapia.org

31. Dear Kevin, • I recently began using Tilapia fillets farm raised by Sea Best and distributed by Beaver Street Fisheries, Inc. I buy these in individual vacuum sealed packages in one pound bags at Wal-Mart in San Marcos, Texas. My husband has diabetes and we both are very weight conscious. This fish is the perfect food item for us, I love the way it is packaged, just use what I need for one meal, it is reasonably priced, always available in the market and consistently high quality. I trust you will forward these comments to the producer. • I LOVE THE PRODUCT!!!! • Marian Birnie Aug. 12, 2001

32. Packaging and Delivery

33. New product forms -Push and Pull Smoked tilapia Sashimi grade tilapia

34. Changes and Predictions • Further intensification in virtually every country • Production will be 75% Oreochromis niloticus, 20% Red strains, O. aureus and O. mossambicus mostly for hybridization • Production will be 50% intensive ponds, 25% cages, 10% intensive recirculating systems

35. Changes and Predictions • Further intensification in virtually every country • Production will be 75% Oreochromis niloticus, 20% Red strains, O. aureus and O. mossambicus mostly for hybridization • Production will be 50% intensive ponds, 25% cages, 10% intensive recirculating systems

36. Changes and Predictions • Further intensification in virtually every country • Production will be 75% Oreochromis niloticus, 20% Red strains, O. aureus and O. mossambicus mostly for hybridization • Production will be 50% intensive ponds, 25% cages, 10% intensive recirculating systems

37. Changes and Predictions • Leather goods from skin will become a significant contributor to profitability • Processing and "value-adding" will intensify in producing countries • Polyculture with shrimp will become common in most shrimp farming areas

38. Changes and Predictions • Processing and "value-adding" will intensify in producing countries

39. Changes and Predictions • US production will increase slowly, intensifying current production methods • Production in the Americas will reach 500,000 mt by 2010 and 1,000,000 mt by 2020

40. Marketing tilapia • Increasing demand / markets should begin in producing country • Opening new markets will be required in US • Plenty of techniques can be used to build markets • Many are free or low cost (placement, samples, live tanks, Web sites) • Most effective forms require investment