Tilapia markets in the Americas, 2001 and beyond

Kevin Fitzsimmons, University of Arizona, 2601 E. Airport Drive, Tucson, Arizona, 85706 USA

15 January 2002, CRSP Research Report 02-176

Abstract The total market for tilapia in the Americas was almost 300,000 metric tons of live weight fish in 2000. Production in the Americas was approximately 257,000 mt and the US imported fillets and frozen tilapia representing more than 30,000 mt of harvested fish from Eastern Hemisphere producers. Expanding demand sufficiently to absorb the rapidly expanding supply has become a critical task to support the current prices for tilapia products.

During the 1980's and 90's several different seafood publications declared tilapia to be the "new fish of the year". Since then tilapia has become one of the more popular seafood entrees in the Americas. As high quality tilapia products began to appear, its recognition as a quality seafood product has increased from Canada to Chile. Tilapia are not truly a new product in the Americas. Mossambique Tilapia, Oreochromis mossambicus were first introduced to the Caribbean by C.F. Hickling in 1947. They were quickly introduced throughout Central and South America. O. aureus, O. niloticus and several hybrid red strains were introduced in the 1960's and 1970's.

Mexico currently produces and consumes (~100,000 mt) more tilapia than any other country in the Americas. The US is the next biggest consumer (>90,000 mt) but just a minor producer (<9,000 mt). Brazil and Cuba are the next largest producers/consumers. Costa Rica, Honduras, Ecuador, and Jamaica are the major exporting countries. Each has a well-developed infrastructure of production, processing and export, with Honduras being the most recent. Each of these exporting countries has some domestic consumption, but the relatively small population base and high level of investment required for large-scale production has driven them to look toward US and European markets.

As supply continues to expand, consumer demand must also increase. "Push" and "pull" strategies are used by marketers to increase demand. Examples of these techniques are described as well as advertising and sales tools. One example of the efforts made by some producers to increase demand was the creation of a marketing entity. Several of the largest tilapia producers and importers/exporters to the U.S. have jointly funded the Tilapia Marketing Institute (TMI). The TMI has begun a broad ranging program to increase U.S. demand for tilapia products. The Institute is pursuing a generic campaign to increase demand for all product forms of tilapia.

This abstract was excerpted from the original paper, which was published in D. Meyer (Editor), 6to. Simposio Centroamericano de Acuacultura Proceedings: Tilapia Sessions, 22-24 August 2001. Tegucigalpa, Honduras, pp. 72-81.

Supermarket outlets for tilapia in Honduras: an overview of survey results

Nelson Omar Fúnez, Ivano Neira, and Carole Engle, University of Arkansas at Pine Bluff, Department of Aquaculture and Fisheries, Pine Bluff, Arkansas 71611 USA

15 January 2002, CRSP Research Report 02-177

Abstract Tilapia culture was initiated in Honduras in the late 1970's. In the last decade, tilapia production in Honduras has grown rapidly because of market expansion for fresh tilapia fillets in the United States. Domestic markets would provide stability by offering additional market alternatives hence reducing risks associated with one target market. A comprehensive study was designed to characterize existing supermarket channels for tilapia in Honduras and to identify strategies to further develop supermarket outlets in Honduras for farm-raised tilapia. A survey instrument was designed to elicit information on the types of fish and seafood sold, prices, availability of tilapia, and supermarket buyersı attitudes towards a variety of attributes of tilapia. The survey showed that tilapia is a well-known product in Honduran supermarkets. Overall, 50% of supermarket managers responded that they were either somewhat or very likely to sell tilapia in the next year. However, the lack of demand, freshness, and seasonal availability were mentioned as primary reasons for not selling or having stopped selling the product. These results suggest that, if tilapia farmers can combine adequate marketing strategies such as intense advertisement campaigns with availability of high quality tilapia, it maybe possible to futher develop the domestic market for tilapia in Honduras.

This abstract was based on the original paper, which was published in D. Meyer (Editor), 6to. Simposio Centroamericano de Acuacultura Proceedings: Tilapia Sessions, 22-24 August 2001. Tegucigalpa, Honduras, pp. 82-86.

Markets for tilapia (Oreochromis sp.) in Nicaragua: a descriptive analysis of restaurants, supermarkets and stands in open markets

Ivano Neira and Carole Engle, University of Arkansas at Pine Bluff, Department of Aquaculture and Fisheries, Mail Slot 4912, 1200 N., Pine Bluff, Arkansas 71601, USA

15 January 2002, CRSP Research Report 02-178

Abstract No marketing studies, either qualitative or quantitative, have been done on the potential to develop a domestic market for farm-raised tilapia in Nicaragua. Domestic markets would provide stability by offering additional market alternatives that reduce risks associated with one target market. A comprehensive study was conducted in Nicaragua of potential buyers of farm-raised tilapia: restaurants, supermarkets, and open-stands market vendors. Three survey instruments designed for marketing studies in Honduras were used as a basis for the Nicaraguan studies. Approximately 20% of the restaurant managers, 66% of the stands in open-air markets, and 23% of the supermarkets sold tilapia. Restaurants, supermarkets, and open market vendors generally had positive attitudes towards tilapia. In the Northwest region, few people were familiar with tilapia. In the South-Central region, people had positive attitudes toward tilapia, but were afraid of contamination of tilapia from Lake Managua. It may be important for tilapia growers to differentiate farm-raised from wild-caught tilapia. According to the managers interviewed, consumers perceive tilapia as a freshwater fish caught in a polluted lake, and are unaware of the advantages of a high quality farm-raised fish. Tilapia farms and processors in Nicaragua will need to guarantee and ensure the flavor, quality, and safety of their product and promote these attributes. Broad-based consumer education and labeling programs may be needed to assist consumers to differentiate between farm-raised and wild-caught tilapia.

This abstract was based on the original paper, which was published in in D. Meyer (Editor), 6to. Simposio Centroamericano de Acuacultura Proceedings: Tilapia Sessions, 22-24 August 2001. Tegucigalpa, Honduras, pp. 87-91.

Technology for successful small-scale tilapia culture

Daniel E. Meyer, Panamerican Agriculture School, Zamorano, Honduras

15 January 2002, CRSP Research Report 02-179

Abstract Tilapia are tropical African fish that adapt well to the artificial conditions of the culture environment. These fish are hardy and resistant to diseases. They gain weight quickly at temperatures between 25 and 30°C and they reproduce on the farm without special management or infrastructure.

Tilapia feed primarily on algae, other small organisms, and organic matter present in pond water and sediments. They quickly learn to consume artificial diets and can adapt to saltwater. Tilapia flesh is firm and white, and has an excellent flavor.

In spite of all the advantages of tilapia, most small-scale fish culture projects established in Central America during the past 30 years have failed These failures are often related to several fundamental errors committed when establishing objectives for rural development projects, in the site selection process for building new ponds, and in the implementation of fish culture projects in rural areas.

In many instances the aim of the extension or development program is to improve the nutritional status of the rural family by providing techniques for culturing fish. Fish are an excellent source of animal protein for humans. Historically, the emphasis on improved family nutrition has not been sufficient motivation to make tilapia culture a part of traditional agriculture production in rural Central America. There has been too little emphasis on establishing fish culture to improve the economic status of rural families in the region.

We often make the mistake of constructing ponds at high elevation or in situations lacking adequate water resources. A warm climate and a year-round supply of adequate water are requirements for successful culture of tilapia.

Often farmers are unable to obtain fingerlings to continue culturing tilapia in subsequent cycles following the first harvest. Many extension agents promoting tilapia culture do not have adequate knowledge to advise and assist farmers in this new technology. Most farmers do not have the knowledge and skills to manage the use of basic inputs (fertilizers and feeds) for successful fish culture.

Small-scale tilapia production is not a panacea for rural poverty. Fish culture can provide high quality animal protein to improve the diet of rural families. The sale of fish can also contribute to improving the economic status of rural families in the region.

This abstract was excerpted from the original paper, which was published in D. Meyer (Editor), 6to. Simposio Centroamericano de Acuacultura Proceedings: Tilapia Sessions, 22-24 August 2001. Tegucigalpa, Honduras, pp. 97-106.

Production and marketing strategies used by small and medium-scale fish farmers in Honduras: Production Strategies Characterizing Small and Medium-Scale Tilapia Farms

José A. Martínez Ayala, Department of Agribusiness, Panamerican School of Agriculture, El Zamorano, Honduras

Joseph J. Molnar, Department of Agricultural Economics and Rural Sociology, Auburn University, Alabama USA

Freddy Arias, Department of Agribusiness, Panamerican School of Agriculture, El Zamorano, Honduras

Tom Popma, Department of Fisheries and Allied Aquacultures, Auburn University, Alabama USA

15 January 2002, CRSP Research Report 02-180

Abstract This report examines samples of farms from Honduras departments have and do not have tilapia ponds as part of their farming systems. Data were obtain through personal interviews with 128 farmers, including 64 tilapia producers, in five departments: Olancho, Intibuca, El Paraíso, Francisco Morazán, and Santa Bárbara.

To obtain information about farms without tilapia, farmers were selected at random within the same community as the identified tilapia producers. Interviews were conducted in communities where the small-scale farmers with production of tilapia were located (Casley and Kumar 1988). The data are intended to constitute a representative sample of the population of the Honduran small aquaculture farmers in these departments. The analysis presents basic comparisons of landholding, farm, and personal characteristics of tilapia producers with the mirror sample of the farmers without tilapia. The analysis profiles basic differences between the two categories of farms, the operators, and their households. Younger farmers were more likely to become involved with tilapia farming. Those farmers more dedicated to their work inside their farm from which they obtain all their income, and whose principal occupation is being a farmer, were more inclined to adopt farming of tilapia. Farmers that use of their land more intensively and who dedicate themselves more to the farming of basic grains were more likely to adopt the farming of tilapia. Since Honduran small farmers tend to be a depressed segment economically, they tend to satisfy first their subsistence necessities by maximizing the use of their resources. The financing for both tilapia growers and nongrowers tends to be a limiting factor because more than 80% of the population works without financing, a clear barrier to farm investments. Tilapia growers participated more in development projects.

This abstract was excerpted from the original paper, which was published in D. Meyer (Editor), 6to. Simposio Centroamericano de Acuacultura Proceedings: Tilapia Sessions, 22-24 August 2001. Tegucigalpa, Honduras, pp. 107-115.