June 3, 2005

 

US aquaculture can expect lower feed costs

 

 

Lowe grain prices this year are expected to reduce the costs aquaculture feed, according to a report by the US Department of Agriculture's (USDA) Economic Research Service (ERS). 

 

The ERS report noted that prices of corn and soymeal this year are expected to be much lower through Q1-3, with year-over-year differences narrowing in the fourth quarter.

 

The factors that have encouraged higher aquaculture production in the US last year¡ªstrong economic growth, better seafood sales at restaurants and higher prices of aquaculture products¡ªwill continue to impact the outlook for domestic production and trade.

 

Lower feed costs are expected to benefit producers of key aquaculture species, such as catfish and tilapia, as feed accounts for the bulk of total farm production costs.

 

Catfish sales by US farmers to processors are expected to increase only slightly in 2005, hovering between 630 million and 640 million pounds, according to the ERS.

 

The ERS also reported that import volumes of US tilapia climbed to 249 million pounds in 2004, up 25 percent from 2003; in value terms, this was US$297 million, up 23 percent from 2003.

 

Increased demand for relatively low-priced, white-fleshed fish at restaurants, and greater public awareness of the nutritional value of fish, contributed to rising sales.

 

More than half of all tilapia products imported into the US come from China, with frozen tilapia fillets making up 77 percent of US tilapia imports in 2004.

 

The US also imports fresh tilapia fillet from Ecuador, which has a proximity advantage over China.

 

Formerly a major shrimp producer, Ecuador has diversified into fish to cater to the fresh fillet segment of the lucrative US market.

 

China and Ecuador are expected to expand aquaculture output even as demand for tilapia products in the US market grows.