After an “unnerving” 2014, the tilapia market is getting back into its regular rhythm.
Prices were higher and it was affecting consumption, according to an East Coast importer and distributor. But, he said, over the past 10 months there has been a return to the mean, with prices in the lower-USD 2 (EUR 1.77) range per pound. Eight months ago, prices were in running about 25 cents a pound more.
In fact, he said, now there are offers that are below market from packing facilities with too much inventory. “Spot sales are below production costs,” he said, but he doubted that would be sustainable beyond a few weeks.
Once consumption rises, as it usually does going into Lent, he predicted an equilibrium or slight pressure for prices to rise above current levels, which were between USD 2.25 to USD 3 (EUR 1.99 to 2.65) for frozen fillets from China, 3 to 5s (ounces) to 9 to 11s, in early February.
There is also less production between the Chinese New Year, which begins 19 February, and the June harvest, he added. “But if we see a lot fish available in July, then we could see the market soften.”
A spokesperson for another U.S. supplier reflected that tilapia buying activity in 2014 wasn’t as aggressive as expected. Prices are now lower, which could drive farmers to produce less, she said. Or they could hold out to see if prices strengthen slightly.
A Midwest distributor that purchases tilapia from Honduras said supply and price have been pretty steady, and demand in 2015 is on par with last year. “Tilapia is tilapia. It is what it is,” he said. “People aren’t going crazy over it.” That being said, he noted that it has broad appeal among retailers, casual dining and white-tablecloth establishments. “Everyone is using it, but in different forms.”
Although acknowledging that there are more sources now for tilapia, including U.S. farmers, the distributor said the U.S.-grown product is still too unstable in terms of supply and price to be a viable option for his customers.
“They can’t keep the price point in a reasonable range,” he noted. “They are pricing themselves out of the market, especially when compared with what is coming out of Latin America or China.” He said when prices start at USD 6 (EUR 5.31) a pound “it’s too much.” Fresh tilapia prices, f.o.b. Miami, have been in the USD 3.90 to USD 4.25 (EUR 3.45 to 3.76) range across the various sizes.
As one of the most popular species for the U.S. market, global tilapia production continues to rise, with a recent Rabobank report noting that production rose by 11 percent annually during the past decade. The United States, with imports valued at USD 1 billion (EUR 884.5 million), is the largest importer and China is the leading exporter.
