China leading light for tilapia

Tilapia is farmed primarily in China's warm southern provinces. In 2006, close to 50% of the total production was concentrated in Guangdong Province. The growth in tilapia output is driven by strong domestic demand as well as exports. In China – particularly the southern coastal provinces – tilapia is popular because its good taste and quality compared to other cultured fish such as carp. Tilapia is also more affordable, compared with other high-valued, cultured species. An industry survey showed that 93% of consumers like tilapia in Guangdong, 76% in Zhejiang and 65% in Shandong. Tilapia is also increasingly popular in large cities such as Beijing and Shanghai.

Chinese tilapia exports doubled in just two years

In only two years, Chinese tilapia exports have doubled to exceed 180 000 tonnes in 2006. Total export value reached US$ 400 million in 2006, which compares to US$ 160 million in 2004. These figures give an idea about the importance of the tilapia industry for total Chinese fish exports, even though in total terms, tilapia makes up for only 5% of total import earnings.

Not surprisingly, the USA is the main importing country of tilapia from China, with 105 000 tonnes in 2006. Imports by the USA alone grew by 25 000 tonnes in 2006. Tilapia is the most important item among Chinese fish exports to the US market.

Second major importing country of Chinese tilapia is Mexico, with 33 000 tonnes in 2006, double the 2005 figure. This enormous quantity of tilapia from China has disrupted the local tilapia producing industry which is not able to compete with the imported product. The average unit value of tilapia exported to Mexico is US$ 1.80/kg, a figure which shows that there is hardly any room for the Mexican tilapia industry to survive. The only way out seems to be improved genetics for tilapia, and higher quality in the fresh sector.

It is also interesting to note the emergence of Russia is a main buyer of Chinese tilapia, with 5 500 tonnes in 2006. The interest of Russia in tilapia from China is paralleled with record imports of pangasius from Viet Nam. Russia is an interesting market for whitefish at a competitive price.

What is preserved tilapia?

In recent years, an interesting custom entry emerged in Chinese trade statistics: preserved tilapia. As no of the major partners shows this entry, it is unclear what product is meant. It is value added tilapia, such as breaded tilapia fillets and tilapia fillets with the addition of lemon, pimento, herbs, or other spices. More than half of the 2006 Chinese tilapia exports are under this category.

Frozen whole tilapia has the lowest unit value of below US$ 1.00/kg, while frozen fillets and preserved tilapia reach US$ 2.70/kg. Despite the substantial increase in exports, the average unit value stayed quite stable at US$ 2.20/kg.

Chinese exports of preserved tilapia increased by 6 fold from 2005 to 2006, showing the expansion of value addition to tilapia by the Chinese industry. The USA is the main importer of preserved tilapia, with some 58 300 tonnes, followed by Mexico with 18 700 tonnes. It is interesting to note that Germany is the main importer of this product among EU countries with 1 400 tonnes.

The enormous growth in preserved tilapia exports from China was paralleled by a sharp decline of frozen fillet exports: only 35 000 tonnes in 2006, 20 000 tonnes less than in 2005.

Frozen whole tilapia exports are about stable over the years under review, with a bit less going to the US market (the US import statistics identify 40 000 tonnes of whole frozen tilapia imports, so some of the preserved tilapia is also whole tilapia, not only fillets. Mexico is also an important market for whole frozen tilapia from China, while UAE and Russia have just emerged as markets for this product.

Chinese total tilapia exports to the EU were 3 400 tonnes in 2006, still quite a limited amount when compared with Mexican or US imports. It has to be considered, however, that in 2005, EU imports of tilapia from China were only 700 tonnes, which means that in 2006 tilapia exports from China to the EU grew almost 5 fold. Germany is by far the main importing country, with the already mentioned 1 400 tonnes of preserved tilapia in 2006. Belgium and Poland are also relatively important (800 and 600 tonnes respectively).

Tilapia from China will boom further

2007 is expected to see further expansion of Chinese tilapia production and exports. The US and Mexican market will grow further, while the EU seems to have just started. Chinese tilapia exports of 250 000 – 300 000 tonnes seem to be a realistic forecast for the present year. Prices of tilapia are likely to stay at their present level, as demand is strong, and the additional production will be absorbed easily by the domestic and export market.

Helga Josupeit
© 2007 FAO