by Dan Burden, content specialist, AgMRC, Iowa State University, djburden@iastate.edu
Revised May 2007 by Diane Huntrods, AgMRC, Iowa State University.
Overview
Tilapia (including all species and hybrids) is the second most important group of farmed fish after carp and the most widely grown of any farmed fish. It is farmed in at least 85 countries, with most production coming from Asia (China) and Latin America (Ecuador, Honduras and Costa Rica).
The global supply of farmed tilapia surged in the 1990s and early 2000s, largely due to genetic improvements through widespread introduction of improved tilapia breeds, feed supply availability, effective management of reproduction through sex reversal and hybridization, and expansion of consumer markets.
According to the U.S. National Fisheries Institute, farmed tilapia ranked #6 on its 2005 “Top Ten” list of the most consumed fish and seafood in the United States. Each American ate 0.7 pounds of tilapia in 2005. Of the ten species listed, including shrimp, canned tuna, and salmon, tilapia consumption rose the most significantly, growing by 21 percent.
Wild Tilapia
Tilapia are a hardy and prolific fast-growing tropical fish. They can live more than 10 years and reach a weight of over 10 pounds. Most species are unable to survive at temperatures below 50°F.
Tilapia were originally found throughout the African continent in shallow, turbid waters of rivers and lakes. They are herbivores feeding mainly on plankton, filamentous algae, aquatic macrophytes and other vegetable matter. If water temperatures are favorable, wild tilapia spawn throughout the year with females producing up to 1,200 eggs. Some species deposit the eggs; others are “mouth brooders,” harboring and protecting the small fry in their mouths if danger threatens. Mouth-brooding species tend to lay fewer eggs but may have higher survival rates.
Farmed Tilapia
Currently, tilapia are produced in outdoor ponds as well as indoor systems for sale as a food fish to the restaurant and supermarket trade. In the southern United States, tilapia production in outside facilities is strictly regulated to avoid unwanted introductions and environmental damage to native fresh-water systems, particularly to sport-fishing resources.
Under culture conditions, brood stock are held onsite and spawned to produce eggs. Under ideal conditions, females may spawn every seventeen days. The eggs and resulting fry are maintained at a temperature of 80°F to 84°F. The pH is maintained at 7.5 to 7.8 while dissolved oxygen levels should remain at or above 8.0 ppm. Under these conditions, market-sized fish can be obtained in about seven months.
Some U.S. corporations have taken an interest in tilapia culture. At its headquarters in Decatur, Illinois, Archer Daniels Midland Company operates a 10-acre indoor hydrofarm that includes an aquaculture center where hybrid tilapia are produced along with hydroponic lettuce and cucumbers for sale to grocers and seafood wholesalers. This project demonstrates how waste industrial heat and grain co-products can be used in an integrated agricultural production system.
Production
As of 2005, 156 food fish farms in the United States cultured tilapia, reporting total sales of $31.3 million. While the largest number of tilapia farms were located in Hawaii (19 farms) and Florida (18 farms), California (15 farms) ranked first in sales (over $8.1 million). Idaho ranked second, reporting over $1.5 million in sales from seven farms.
Of the 156 U.S. tilapia farms, the largest number (128 farms) reared foodsize tilapia, reporting total sales of $29.6 million. Many of these farms were situated in Hawaii (18 farms), California (15 farms) and Florida (12 farms). Other tilapia farms specialized in stockers, fingerlings and fry, and broodstock.
As the tilapia industry has grown, so has the number of product forms. Today, fresh or frozen fillets are available in different sizes and packages, as skin-on, skin-off, deep skinned, individually quick frozen, smoked and sashimi grade, and are treated by carbon monoxide or ozone dipped. Interesting byproducts have emerged such as leather goods for clothing and accessories, gelatin from skins for time-released medicines and flower ornaments made from dried and colored fish scales.
Production Costs
In a University of Florida operational analysis, a model business analysis suggested that a small-scale, outdoor pond tilapia culture facility may be profitable. Positive average annual net returns and a cash flow that is positive throughout a five-year planning horizon supported this conclusion. Given the assumptions concerning yield, harvest size, market prices and per-unit input costs, the hypothetical six-acre tilapia culture facility required an initial investment of $65,850 and generated $40,259 in annual operating costs, yielding $29,221 in net returns during an average year. However, variables including market price, feed costs, survival rates, technical ability, geographic location of the facility, prevailing market conditions and additional factors including other input prices and stocking densities were also shown to potentially influence profits.
With the availability of frozen tilapia imports from China, almost all of the tilapia cultured in the United States is sold as a live product to attract the premium price necessary to cover production costs.
Exports
Since 2001, the dollar value of U.S. exports of tilapia has steadily increased from $2.5 million to $6.1 million. Mexico continues to be the largest importer, with imports totaling $5.5 million in 2005.
Imports
According to the National Marine Fisheries Service, tilapia imports to the United States in 2006 totaled 348.9 million pounds and were valued at $482.7 million. For the fifth consecutive year, the quantity of imported tilapia increased as did the average price.
The U.S. tilapia import market is split into two segments: the frozen and the fresh sectors. The frozen sector, both fillets and whole fish, is dominated by Chinese products. The fresh sector is experiencing good demand, especially from supermarkets, and rising prices.
China provides over 70 percent of the U.S.'s imported tilapia. Although it is concentrating on the export of frozen tilapia fillets, China also expanded its frozen whole tilapia exports to the U.S. market in 2006. The total value of imported fresh tilapia fillets was nearly $148 million. Most fresh fillet imports come from Ecuador, Honduras and Costa Rica.
Trends
Global production of tilapia is projected to increase to 2.5 million ton by 2010, with a sales value of more than $5 billion. The development of both the frozen and the fresh sectors of the tilapia import market is expected to continue, with fresh fillet prices likely to go up even further.
The shift from mostly whole fish to more fresh and frozen fillets will likely continue in the future, because Asian tilapia producers are expected to strongly compete to be the low-cost supplier to a U.S. market geared to a frozen filleted product. Imports of tilapia products will probably become a mainstay in the U.S. foodservice and restaurant sectors, where the mild, white-fleshed fish with a steady or declining price has provided an easy way to add a seafood item to menus. The questions for the U.S. tilapia industry are how best to compete with growing foreign production and how to determine which market segments are most favorable for domestic producers.
Sources
2005 Census of Aquaculture, NASS, USDA, 2006.
Aquaculture Outlook, ERS, USDA, 2006.
FAO, Fisheries Global Information System, Nile Tilapia Cultured Aquatic Species Fact Sheet.
Profile created July 2004 and revised May 2008.