June 20, 2023
Rough times for China's tilapia industry
An eFeedLink Hot Topic

China is the world's largest producer and exporter of tilapia, with the United States as the biggest importer of Chinese tilapia.
However, China's tilapia exports have been trending low since the third quarter of 2022. Industry veterans projected the country's tilapia production to suffer a freefall this year, a great challenge for tilapia producers if that would happen.
Traditionally, tilapia demand from the US was strong from the fourth quarter through April, but this sales peak did not materialise last year. Orders for tilapia exports to the US slowed considerably in Q1-3, 2022, resulting in the price of tilapia falling sharply. High inflation also prompted US consumers to cut expenses on non-essential items including imported tilapia.
China's tilapia export products include frozen tilapia fillets, frozen tilapia, live tilapia, fresh or chilled tilapia, and fresh or chilled tilapia fillets. According to 2021 customs export data, China exported 78,834 tonnes of frozen tilapia products, with an export value of about US$172 million. Last year, it exported 74,784 tonnes of frozen tilapia, with an export value of about US$164 million.
As tilapia exports rose steadily over the past several years and stimulated the expansion of production in China, the modest drop in export in 2022 resulted in excessive availability in the domestic market. Producers switched from processed frozen fish fillets for export to live and frozen whole fish for domestic sales, which are lower in price. This, coupled with an abrupt influx of supplies in the local market, drove down prices precipitously.
Tilapia is mainly farmed in the southern Chinese provinces of Guangdong, Hainan and Guangxi, with a combined output of about 1.66 million tonnes in 2021 (738,000 tonnes in Guangdong, 316,000 tonnes in Hainan and 253,000 tonnes in Guangxi). When the tilapia market underperformed, farmers switched to other cultured species, such as snakehead, sea bass and catfish. As a result, tilapia production declined.
As tilapia is China's dominant aquatic product in the export markets, its reduced production will affect the country's export volume substantially. Southeast Asian countries that are developing their tilapia industries will also pose further challenges.
Nevertheless, China has the advantage of being the world's biggest tilapia exporter for many years. This position helped to solidify its market presence and establish stronger recognition among foreign consumers. These factors will help the Chinese tilapia industry weather short-term fluctuations.
- David Lin, eFeedLink