Strategies of Access to US Markets for Tilapia

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Strategies of Access to US Markets for Tilapia

• Kevin Fitzsimmons, Ph.D.University of
  ArizonaTucson, Arizona, USA
• Vice President, American Tilapia Association
• President Elect, US. Chapter of World Aquaculture
  Soc.

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Introduction

• Tilapia first imported in 1950s
• Aquaria and zoos
• Weed control and baitfish
• First aquaculture in late 60s and early 70s
• Many biologists learned through Peace Corps
• Early farms in geothermal areas in West, Florida
  and Alabama

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Harvesting from geothermal ponds in California
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Early Markets

• For stocking golf course ponds and irrigation
  systems
• Oriental stores and restaurants, live fish
• Live hauling to San Francisco, New York, San
  Diego, Toronto, Vancouver

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Introduction

• Tilapia is still a new product in US markets.
• Tilapia will be one of the big four seafood
  products in the 21st Century (salmon, shrimp,
  catfish and tilapia)

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Current Status

• Live production from domestic producers,
  processed from imports
• Recirculating systems and geothermal waters.
• Established market demand.
• Popular in several product forms.

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Source of US Tilapia supply 2000 (by volume)
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US. Tilapia imports 1993-2000
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Tilapia imports to US(1992-2000)
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Value of Tilapia imports (1992-2000)
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Typical prices for Tilapia products sold in the
U.S. (November 2000.)
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Established US market demand

• Now available in most regions
• Available in many forms
• Live, Whole, fillets, fresh and frozen, smoked,
  sashimi

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Middle Level Marketing

• White tablecloth restaurants
• Specialty seafood stores
• Live tanks at seafood counters
• Develop additional ethnic markets

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Current Trends of US Tilapia Markets

• US growers will concentrate on live sales and
  highly processed forms
• Increasing demand for all forms of tilapia, but
  greatest for fresh fillets
• Prices have been constant for several years, may
  decrease slightly
• Southeast Asia and Latin America will be primary
  suppliers

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Current Trends

• Increase in demand for all forms of tilapia
• Demand increase will be greatest for fresh
  fillets
• New markets need to be developed
• Further value added forms smoked, marinated,
  microwave ready

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Tilapia Marketing Institute

• Formed in 1998, hired marketing firm to develop
  generic market campaign
• Funds provided by Latin American, one Asian
  producer and their US marketers
• Recently added first US producer
• Goal is to increase recognition and demand for
  all forms of tilapia

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Problem areas in US markets for Tilapia

• Small fillet size from some producers
• Off-flavors
• Inconsistent supply
• Inconsistent quality
• Need more customer recognition

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Marketing Solutions

• Quality control programs
• Generic and brand advertising
• Tilapia Marketing Institute
• Local marketing efforts

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Current Trends for US Tilapia Markets

• US (and EU) growers will concentrate on live
  sales and highly processed forms
• Southeast Asia and Latin America will be primary
  US suppliers
• Africa, Latin America and Caribbean will supply EU

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International suppliers to US

• China has taken a large of Taiwan share
• China is expanding production
• Honduras and Ecuador have rapid expansion of
  exports
• Colombia, Costa Rica, Brazil and Mexico may
  increase exports
• Cuba could be major exporter if trade embargo ends

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International suppliers to US

• Ecuador has passed Costa Rica as supplier of
  fillets to US, by integrating with shrimp
  production
• Colombia, Thailand and Mexico were exporters to
  US, but exports levels decreased while
  production increased
• Philippines is big producer, some exports to
  Japan, currently no exports to US, but great
  interest

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US tilapia marketing goals

• Increase domestic demand
• Increase value added forms (breaded, marinated,
  ready to microwave)
• Maintain environmental awareness
• Market tilapia as ecologically efficient and
  sustainable

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Access to US markets

• Seafood restaurants, especially chains (Red
  Lobster, Landrys)
• Most grocery stores
• Competing with catfish, trout, salmon, sole,
  flounder and other marine species
• Compete with chicken, beef, pork

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Recommendations to enter US tilapia market

• Joint venture with existing marketing entity
• If solo, try to co-market with other products
• Avoid traditional seafood importing and brokers
  (they will not spend any money to develop
  markets)
• Develop value added products (fillets, breaded
  forms, sashimi, etc.)

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Recommendations to enter US tilapia market (cont)

• Find marketing partner (seafood chain, large
  grocery chain, wholesale stores, food service
  supplier)
• SYSCO and SHAMROCK
• Be willing to donate samples
• Be prepared to spend money for advertising and
  market development

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Internet Auction sites

• Inexpensive way to start
• Still need lots of infrastructure (storage,
  shipping, finances, etc)
• Intermediary costs

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Internet Tilapia Market sites
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Internet Tilapia Market sites
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www.tilapia.org