Global tilapia production fell 13 percent in 2008, to 2.06 million metric tons. Given last winter’s snow and ice storms and lower-than-usual temperatures in southern China, which decimated production at many tilapia farms there, the drop was expected.
China, the world’s largest tilapia producer, representing more than three-quarters of total U.S. tilapia imports, is already on the path to recovery. According to one source, China’s tilapia production may return to pre-2008 levels this year. In 2007, the country exported more than 215,000 metric tons, an all-time high.
But sourcing product may not be as easy as it was in years past due to increased competition. Mexico and Russia, which account for upward of 30 percent of total Chinese tilapia exports, are purchasing more fish, and European countries are warming up to tilapia after years of giving the species the cold shoulder.
Additionally, more tilapia is staying in China, where the economy has grown tenfold in the past 30 years and is now the world’s third largest.
Due primarily to the drop in Chinese output, prices of frozen tilapia fillets in the United States increased steadily last year and are 50 to 75 cents a pound higher than they were in late 2007. By mid-January, they were commanding USD 2.10 to 2.20 for 3- to 5-ounce fillets, USD 2.35 to 2.45 for 5-7s and USD 2.70 to 2.75 for 7-9s.
Frozen tilapia prices are expected to soften in the coming months as availability increases, according to the source. Additionally, an unfavorable economic climate may prompt Chinese tilapia exporters to reduce prices to generate demand at home and abroad.
