Dan Burden, International and Special Projects, Extension Value-added Agriculture and AgMRC, Iowa State University, djburden@iastate.edu.

Revised May 2010.


Overview
Tilapia (til ah pe ah), sometimes called Nile perch, 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, tilapia ranked fifth on its 2008 “Top Ten” list of the most consumed fish and seafood in the United States. That year, the average consumption of tilapia was 1.2 pounds per person.

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. Although tilapia can live in either fresh or salt water, 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. As a result, tilapia do not accumulate pollutants and other toxins in their bodies. 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.  (NASS 2006)

Of the 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.  (NASS 2006)

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.

Global tilapia production fell in 2008. The drop was anticipated, after Chinese tilapia farms were subjected to severe winter storms in February 2008. However, tilapia production in China, the world leader in tilapia culture, seems to have already recovered. From January through August 2008, the country exported 151,000 tons of tilapia, 2,200 more tons than it did during the same period the previous year.  (FAO 2009)

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
The dollar value of U.S. exports of tilapia generally increased from 2001 through 2006. However, the drop in value of tilapia exports in 2007 only continued during 2008, declining 25 percent to $3.3 million. Mexico remained the largest buyer, with imports totaling $1.1 million in 2008.  (FASS 2009)

Imports
According to the Department of Commerce, tilapia imports to the United States in 2008 totaled 395.7 million pounds and were valued at $734.5 million.  (ERS 2009)

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, dominated by Latin American countries, is still experiencing demand, especially from restaurants and supermarkets.

China supplied nearly 60 percent of the tilapia imported into the United States in 2008. The country dominated the frozen sector of the U.S. market, providing 57 percent of the whole tilapia and 83 percent of the tilapia fillets. Ecuador, Honduras and Costa Rica continued to be the primary suppliers of imported fresh tilapia fillet. Together, the three countries provided 81 percent of the fresh tilapia fillets imported in 2008.  (ERS 2009)

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
Census of Aquaculture (2005), National Ag Statistical Service (NASS), USDA, 2006.

Aquaculture Data, Economic Research Service (ERS), USDA.

Global Agricultural Trade System (GATS), Foreign Ag Service (FAS), USDA, 2009.

Nile Tilapia, Cultured Aquatic Species Fact Sheet, Fisheries Global Information System, FAO.

Tilipia Market Report, Globefish, FAO, 2009.

Top 10 Consumed Seafood, National Fisheries Institute,aboutseafood.com, 2009 - Lists the top ten species consumed in the United States by pounds per person.