TILAPIA IN

CFC/FAO/INFOFISH “ORGANIC” AQUACULTURE PROJECT

Fatima Ferdouse

INFOFISH

Market survey Market survey

• The project conducted market surveys in The project conducted market surveys in AsiaAsia, , North America North America and Europe and Europe

• Market potential for certified organic turned out to be good in Market potential for certified organic turned out to be good in East Asia compared to the western markets during 2008- East Asia compared to the western markets during 2008-20092009

• Consumers demand in Asia also seems to be larger for Consumers demand in Asia also seems to be larger for Chemical-free fishChemical-free fish

• With this feed back , trial production and marketing of With this feed back , trial production and marketing of chemical-free tilapia began in Malaysia chemical-free tilapia began in Malaysia

TRENDS IN GLOBAL ORGANIC FOOD MARKET

• GLOBAL ORGANIC PRODUCTION AREA : GLOBAL ORGANIC PRODUCTION AREA : 35 million hectares in 2008 35 million hectares in 2008

(0.70% of world agriculture land) (0.70% of world agriculture land)

• GLOBAL AQUACULTURE (food fish) PRODUCTIONGLOBAL AQUACULTURE (food fish) PRODUCTION : 50 331 239 : 50 331 239 tons (2007) tons (2007)

• ORGANIC FISHERIESORGANIC FISHERIES PRODUCTION : PRODUCTION : 53 000 - 55 000 tons 53 000 - 55 000 tons (0.10 % of world aquaculture production ) (0.10 % of world aquaculture production )

ESTIMATES ON GLOBAL ORGANIC FOOD PRODUCTION ESTIMATES ON GLOBAL ORGANIC FOOD PRODUCTION

ORGANIC FISHERY MARKET ORGANIC FISHERY MARKET

• US$ 300 - 400 million at distributor level US$ 300 - 400 million at distributor level

• US$ 800 - 900 million at retail levelUS$ 800 - 900 million at retail level

ESTIMATES …… ESTIMATES …… GLOBAL ORGANIC FOOD MARKETGLOBAL ORGANIC FOOD MARKET..

Organic Food and Beverage: US$ 50 billion in 2008Organic Food and Beverage: US$ 50 billion in 2008

USA : US$ 20 billionUSA : US$ 20 billionEU : >US$ 20 billion EU : >US$ 20 billion Japan: <1 US$ billion Japan: <1 US$ billion China : US$ 4 billion China : US$ 4 billion

Malaysia : US$ 25 millionMalaysia : US$ 25 millionSingapore : US$ 25 million Singapore : US$ 25 million

ASIA-PACIFIC ORGANIC FOOD MARKET :

• Organic food and beverage consumption in Asia/Pacific is higher than the global average (AC Nielson, )

• The leading markets identified are China, Taiwan, South Korea, Singapore, Thailand, Malaysia

• Organic salmon and cod were the only seafood one could see in SE Asian markets ------- except in China

• Marketers and consumers say-----”organic fishery products are unavailable to them”.

ORGANIC MARKET IN CHINA -2009• Organic food market was worth US$ 3-5 billion

• Certified organic fishery production totalled over 16 000 MT in 2007

• This was equivalent to only 0.4% of the total aquaculture production in 2007

• Nearly all organic fishery products entered the domestic market

Organic Seafood Survey in SE Asia

• Medium & High-end supermarkets

• Five star Hotels

• Fine dinning & restaurants

Global Production of Organic Fishery Products Global Production of Organic Fishery Products

• Europe : 24 500 tonsEurope : 24 500 tons• Asia : 19 000 tonsAsia : 19 000 tons• Americas: 7 000 tonsAmericas: 7 000 tons

• Africa: 2 000 tonsAfrica: 2 000 tons• Australia & NZ: < 1 000 Australia & NZ: < 1 000

tonstons

Salmon : 30% (Salmon : 30% (16 000 16 000 tons ) tons )

Trout :36%Trout :36%

Sea bream / Sea Sea bream / Sea bass :7%bass :7%

Carp :10% Carp :10%

Shrimp: 18% (Shrimp: 18% (8 800 tons )8 800 tons )

Tilapia : 2%Tilapia : 2%

PangasiusPangasius: 2%: 2%

Trial Production of Organic Tilapia Trial Production of Organic Tilapia

• MalaysiaMalaysia : Cage culture : Cage culture in in Tasik Kenyir , Tasik Kenyir , Terengganu Terengganu

• MyanmarMyanmar: Pond culture : Pond culture

Cage culture in Cage culture in Tasik Kenyir,Tasik Kenyir,MalaysiaMalaysia

• Initial culture was focused on chemical-free fish

‘-Organically’ farmed tilapia entered the ‘live fish ’ retail trade (supermarket) in Kuala Lumpur for the first time

-Local organic shop started marketing whole dressed fish and fillet through selected outlets -Consumer feed back was good , but regular supply has been a constraint ; demand increased after the trial marketing -, Tilapia price at farm gate and retail level increased for such fish over the last two years

Test Marketing

MYANMAR

• Initial farming was targeted for the organic Initial farming was targeted for the organic freshwater freshwater machrobrachiummachrobrachium or freshwater prawn or freshwater prawn

• The poly-culture system later offered opportuinities The poly-culture system later offered opportuinities for organic tilapiafor organic tilapia

MYANMARMYANMAR

• A potential Asian buyer visited A potential Asian buyer visited the farming site the farming site

• Taste test was done Taste test was done

• And she liked the “organic prawn And she liked the “organic prawn and tilapia ‘and tilapia ‘

• And the ‘organically grown ‘ And the ‘organically grown ‘ pangasiuspangasius

MYANMARMYANMAR

• Poly-culture (freshwater prawn Poly-culture (freshwater prawn and tilapiaand tilapia

• Farm -made certified feed was Farm -made certified feed was used to produce organic tilapia used to produce organic tilapia and prawn and prawn

• The farm followed organic The farm followed organic aquaculture procedures aquaculture procedures

• The ‘Organic Tilapia ‘ received The ‘Organic Tilapia ‘ received OAPC certification from Thailand OAPC certification from Thailand

Finally ORGANIC TILAPIA and F/W Prawn were exported for Malaysia and Singapore markets

OPPORTUNITIES

• Organic poly-culture

• Organic barb

• Organically grown pangasius

Malaysia : Price Premium for Chemical – free Malaysia : Price Premium for Chemical – free at Farm Gate at Farm Gate

(INFOFISH , 2009)

•PangasiusPangasius catfish : 35% catfish : 35%

•Tilapia : 36%Tilapia : 36%

•B/tiger Shrimp : 30-40%B/tiger Shrimp : 30-40%

Higher value of fresh/chilled fish will continue Higher value of fresh/chilled fish will continue to associated with the to associated with the quality marksquality marks

• Economic recession has slowed down growth in western organic markets . Naturland reported that only 36% of shrimp was marketed (in Europe/USA) as organic---due to supply-demand imbalance and too much market dependence on these markets

• In comparison , organic finfish ( salmon , bream , pangasius, sea bass and sea bream) market was less effected . Organic salmon and cod are also imported into East Asian markets

• In Asia , wild caught fishes currently fill up the place of organic fish due to lack of supply / inadequate supplies from local sources .

• Once available --- organic and chemical –free fishery products , particularly the fin fish species - will benefit significantly from the ‘ready’ domestic and regional markets .

• Environmental issues and aquaculture : Organic aquaculture would be able to weather issues such as ‘carbon labeling’ in the production cycle