Tilapia - a global commodityThe ‘aquatic chicken’ comes of

age

Eric RoderickExecutive Director Fishgen Ltd

CEFAS October 2009

What is Fishgen?

A Swansea University Spin-out company, set up in collaboration with the UK government’s Department for International Development (DFID) and dedicated to supplying quality tilapia stocks for aquaculture worldwide

We have exported to over 40 countriesIdentified with Genetically Male Tilapia

(GMT®), a product unique to FishgenContinuous R & D programme for

development of new and better fish

What are tilapia? A tropical freshwater fish species originating in Africa (over 100

species, but Nile tilapia - Oreochromis niloticus most common) and farmed by the ancient Egyptians over 4000 years ago to feed the Pharaohs.

Eggs hatched and fry reared on the International Space Station and just a few weeks ago another space launch carried tilapia fry into orbit.

Well suited to aquaculture– Hardy, adapts to a wide range of culture systems from

freshwater to highly saline conditions– Easy to breed and fast growing, replacing over-fished local

species– Introduced worldwide for aquaculture ranging from traditional

extensive to modern intensive systems– Known as the “aquatic chicken”

Female Tilapia mouthbrooding eggs. A typical clutch varies from 500 to 1500 eggs, depending on the size of the female.

Tilapia eggs(rich in yolk)

Pictures from inside one of the Stepped pyramids in Saqqara, Egypt.

The pyramid was constructed in the 27th

Century B.C. and the reliefs depict fishing for Tilapia using nets and bottles to store the catch.

Typical tilapia pond harvest in Egypt

Tilapia productionCurrently second in volume to carpsPrediction: Tilapia will become most

important aquaculture crop in this century(3 million Mt by 2010)

Widest demand, no religious/cultural concerns, few environmental concerns

More genetic potentialGreatest variety of production systems

Tilapia Culture SystemsTilapia harvesting in Thailand Ivory Coast fisherman

Intensive raceway Tilapia farm in Brazil

Cage farm in Zimbabwe

Genetics in AquacultureAn embryonic science?

(Adapted from Gjedrem, 1997)

Fishgen’s ultimate goal!

World Tilapia Production of 2,348,656 mt in 2006

Asia

Americas

Africa

Others

China

EgyptPhilippines

Mexico

Thailand

Taiwan

Brasil

Indonesia

Bangladesh

Colombia

Cuba

EcuadorVietnam

Costa RicaHonduras Malaysia United States

Others

World Tilapia Production of 2,792,498 mt in 2008

Tilapia the “Green” farmed fishHerbivore / omnivore, low trophic level feederAlgae, bacteria, and detritus (bioflocs) are

important food sourcesPrepared feeds are mostly cereals and agriculture

by-products such as rice bran.Promoted by aid agencies and NGO’sDisease resistant and tolerant of poor water

quality. Anti-biotics and chemicals are not needed for commercial farming.

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Aquaculture Fishery

Global production of tilapia

According to SOFIA 2008 (State of the World’s Fisheries and Aquaculture) released by FAO, Aquaculture produces almost 50% of all fish eaten around the world, amounting to 52 million tonnes worth $78.8 billion. This is a massive rise from just 9% in 1980. The report also shows continuing declines in yields of capture fisheries, along with a rise of 80% in the number of fisheries that are fully or over exploited. 43.5 million people are directly employed in capture fisheries and aquaculture, with 86% of them living in Asia. Tilapia global sales for 2009 are predicted to be worth $5 billion.

Top Ten Seafoods (U.S.)per capita (lbs)

2000 2001 2002 2003 2004 2005 2006 2007 2008Tuna 3.5 Shrimp 3.4 Shrimp 3.7 Shrimp 4.0 Shrimp 4.2 Shrimp 4.1 Shrimp 4.4 Shrimp 4.1 Shrimp 4.1Shrimp 3.2 Tuna 2.9 Tuna 3.1 Tuna 3.4 Tuna 3.4 Tuna 3.1 Tuna 2.9 Tuna 2.7 Tuna 2.8Pollock 1.6 Salmon 2.0 Salmon 2.0 Salmon 2.2 Salmon 2.2 Salmon 2.4 Salmon 2.0 Salmon 2.4 Salmon 1.8Salmon 1.5 Pollock 1.2 Pollock 1.1 Pollock 1.7 Pollock 1.7 Pollock 1.5 Pollock 1.6 Pollock 1.7 Pollock 1.34Catfish 1.1 Catfish 1.1 Catfish 1.1 Catfish 1.1 Catfish 1.1 Catfish 1.0 Tilapia 1.0 Tilapia 1.14 Tilapia 1.19Cod 0.8 Cod 0.6 Cod 0.7 Cod 0.6 Tilapia 0.7 Tilapia 0.8 Catfish 0.97 Catfish 0.90 Catfish 0.92Clams 0.5 Clams 0.5 Crabs 0.6 Crabs 0.6 Cod 0.6 Crabs 0.6 Crabs 0.7 Crabs 0.68 Crabs 0.61Crabs 0.4 Crabs 0.4 Clams 0.5 Tilapia 0.5 Crabs 0.6 Cod 0.6 Cod 0.5 Cod 0.47 Cod 0.44Flatfish 0.4 Flatfish 0.4 Tilapia 0.4 Clams 0.5 Clams 0.5 Clams 0.4 Clams 0.4 Clams 0.45 Flatfish 0.43Scallops 0.3 Tilapia 0.4 Flatfish 0.3 Scallops 0.3 Scallops 0.3 Scallops 0.3 Scallops 0.3 Flatfish 0.32 Clams 0.42Tilapia 0.3

US Consumption of tilapia from domestic and imported sources

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Domestic Imports

A major new initiative set up in July 2007 is the formation of the American Coalition for Tilapia (ACT) made up of producers representing almost 100% of the fresh tilapia fillets currently sold in the USA. “ The unifying purpose of the group is to promote the image, benefits and quality of fresh tilapia fillets produced in the Americas.”

This is a direct result of the FDA report restricting some farmed fish imports into the USA from Asia. A priority for ACT is the Carbon Monoxide used in China to enhance shelf life and fresh appearance of frozen tilapia fillets.

Tilapia situation in Latin AmericaEarly in year, fresh sales from

Central and South America increasedLate in year, severe problem with

letters of creditImporters cannot borrow to buy fishSlumping exports to the USOnly biggest firms with cash can

continue buying

Tilapia situation in Latin AmericaDecreased fresh sales from Ecuador

and PeruIncreased fresh sales from Brazil,

Nicaragua, Honduras, Colombia, Costa Rica

Fishgen’s partner in Costa Rica, Til-Gen

A new totally biosecure hatchery supplying broodstock to Central America.

Individual fry rearing units allow different strains to be reared separately.

Fishgen’s partner in Brazil –Sta Isabel

Tilapia situation in AsiaHuge decrease in frozen sales from

China in early part of year due to winter kill

Increased frozen sales from Indonesia and Thailand

By end of year, China equaled 2007 sales volume, but large increase in value

December 18, 2008

Government of China proposes to ban use of CO for treatment of tilapia (and other fish and meat products).

Final decision to be made in 2009.

Production costs in China rose 20% last year. Expect 10%+ increases in coming years.

Tilapia processing in Hainan, China

Above – Hand filleting to produce the fillets (seen left)

Hapas and concrete tanks used for genetic studies in Fishgen’s production centre in the Philippines

Tilapia (2008), Tesco, UK)

Tilapia – the UK market.Early 80’s - 1 farm, ( very small production on an eel farm in Devon) then in the late 80’s, a much larger operation in Derby, utilising waste heat from Courtalls Textile Factory.

Early 90’s - several new high tech indoor recirculation units built specifically to grow tilapia. Lots of early problems which are now being overcome.

Today 11 tilapia farms in the UK, one UK hatchery, and 5 academic research facilities, + another 12 small buyers of tilapia fry for backyard operations or integrated aquaponics units.

Total production for the UK (under optimum conditions and based on the farm sizes) should be 800 tonnes, but due to some teething troubles, actual production at the moment is nearer 300 tonnes.

The previous slide gave a price of £8.99 / kilo, in early 2008. Actual price today in Tesco is £3.00 per fish (around 500g) equating to £6.00 / kilo.

UK farm gate prices range from £2.34 to £4.00 per Kg for Whole Round fish depending on the volume and purchaser.Imported Chinese frozen fillets cost £1.11 landed cost!

In 2008 all Tesco’s fish were imported from Jamaica which has historically been the only source of whole tilapia to all the UK supermarkets. Tesco’s tilapia label today states that the fish are sourced from Indonesia, Ecuador, Honduras, Zimbabwe and the UK.

In July, Fish Farming International published interviews with the three largest global tilapia production companies: Regal Springs (60,000 mt in 2008, 71,000 predicted in 2009 with farms in Honduras, Indonesia and Mexico), AquaChile(22,000 mt in 2008 with farms in Chile, Costa Rica, USA and Panama) and Tropical Aquaculture Products Inc (10,200 mt for 2008 with farms in Ecuador Costa Rica, Columbia and Brazil) and they were all increasingly targeting European markets where prices are higher than their main market in the USA.

Belgium’s Vitafish, the largest recirculation farm in Europe built a few years ago at a cost of £15 million, with a target production of 4000 tonnes of tilapia, has just gone into receivership, due to massive disease issues brought about by importing cheap tilapia fry from Thailand. Importing fry caries significant risks.

Fishgen’s Partner in Spain -Valaqua

Fishgen’s USA Partner – Til-tech

Demands on farmers and processors Demand for even more food safety, high quality,

“organic” or “green” tilapia products. - Reduce or eliminate use of methyl-testosterone hormone.- No anti-biotics or other chemicals- Reduce environmental impacts- More integrated, re-use water for farming crops- Re-use processing waste products

More value-added tilapia products More demand for all forms, especially frozen meals Rapidly increasing demand from Europe

Developing countries improved quality control:Required for US, EU, and Japan markets

Samples checked for bacterial and chemical contamination

Follow HACCP procedures, ISO, and EU guidelines

Many plants are using ozone dips to reduce surface bacteria

Improvements in packaging

IQF Filletsin re-sealable

packages

Industry by-productsFormed fish productsFertilizerFish mealLeather goods and pharmaceuticals from

skinsBiodiesel (Honduras farm produces

300,000 gallons annually using fish waste from the processing plant).

Organic TilapiaThere is no globally accepted Organic Certification for tilapia, and currently only 2 farms worldwide are producing organic tilapia.

HQ Sustainable Maritime Industries, a big USA company grows its 40,000 tonnes of tilapia in Hainan Island, in China and the Chinese government certify that 5000 tonnes is produced organically under the “TiLove Ya” brand.

Regal Springs – another US company with tilapia production in Honduras and Indonesia markets 2% of its Honduran production as Organic, certified by Natureland and Biosuisse. Regal Springs gets 100% premium prices for its organic fish.

New product forms

Smoked tilapia

Sashimi grade tilapia

Tilapia Orange Juice

Flowers made from Tilapia scales

Leather goods made from Tilapia skin, produced in Brazil

Global Aquaculture Tilapia Sales

For year 2000 =US $ 1,744,045000(FAO FishStat 2007)

2005 sales = $ 2,457,312,000(FAO FishStat 2007)

2010 sales >$ 5,000,000,000

Future Trends Additional processing in producer countries Need to meet stricter food safety, quality,

and environmental criteria More demands for food safety, quality

assurance, improved packaging, and environmental safeguards (with little if any increase in price)

Farmers and processors will need to meet these demands by increasing efficiency, not price

Future global tilapia aquaculture

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ConclusionsGlobal tilapia production will exceed

3,000,000 metric tons in 2010.Constantly improving production systems

with demands for more sustainability. More demands for food safety, quality

assurance, improved packaging, and environmental safeguards (with little if any increase in price)

ISO, HACCP and NGO certifications will be a fact of life.

Our Fishgen tilapia come fully trained!

Thank you