Philippine tilapia industry roadmap

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The Philippine Tilapia Industry Roadmap serves as the blueprint for a sustainable development of the industry. The plans that were formulated and identified are inclusive, attainable, market-driven, and attuned to the needs of the industry. They seek to address three general questions: where are we? where do we want to go? and who will do it?

The report presents the vision, mission, goals, plans, and targets of the industry. It is a product of industry consultations (virtual consultation and meeting with bureau heads of BFAR Regional Fisheries Production and Support Services Division and Technology Outreach Stations and tilapia focal persons nationwide), interviews of key informants and industry survey from the hatchery and grow out operators, and feed and fish processors
were also undertaken.

Where Are We?

Tilapia is presently identified as one of the priority species in Philippine aquaculture asnit is considered the second most farmed species next to milkfish (Chanos chanos). Nile tilapia (Oreochromis niloticus) and its hybrids are cultured in freshwater and brackish water environments. The industry was hailed as the 6th major producer of farmed tilapias in the world in 2019 with a total production of 279,385.9MT which accounted for the
4.5% of the total world tilapia production. In 2020, the tilapia industry registered a 6.91% contribution (304,326.59) to the country’s total fisheries production of 4,400,373.01 MT.

A ninety-nine percent increase was observed in tilapia production over the span of 18 years from 152,985.0 MT in 2002 to 304,326.59 MT in 2020. Majority of the production was from Central Luzon, having extensive fishpond areas for culture. Alone, it contributed 45.73% to the total tilapia production in 2020. The CALABARZON region is next where supply mostly comes from cages situated in Taal Lake. The annual per capita consumption of tilapia in 2019 was 2.9 Kg per year. The industry has been able to export tilapia with a total volume of 8,165 MT from 2005-2019. It was sold on a wholesale price of PhP 80.60/kg and on a retail price of PhP 109.00/kg.

In terms of supply/value chain, tilapias goes through the different marketing layers –from  producers, bakuleras/viajeros, processors, and retailers including the institutional buyers before it reaches the consumers. It is sold primarily in the domestic market either fresh or
live.

SWOT analysis revealed that the availability of quality broodstock and tilapia strains from BFAR, easy access to latest breeding and farming technologies, and established market linkages mechanisms and subsidies from government are the strengths of the industry. In contrast, the identified weaknesses of the industry are the high cost of raw materials (fish meal) and equipment for tilapia feed production, high production costs particularly in feed inputs, weak mechanism for product traceability, numerous marketing layers, and weak credit access. The roadmap identifies opportunities that would further enhance the industry such as the availability of local agri-by-products/agricultural wastes as potential
raw materials for feeds and supplemental feeding, adoption of green water technology in the production of tilapia, increase of export demand in international market, and increasing interest to engage in tilapia production, processing and marketing. Lastly, the identified threats along the chain segment is the erratic climatic and weather conditions and the occurrence of natural calamities, emergence of new diseases and volatility of farm
gate price.

The average production cost to operate a one-hectare tilapia fishpond farm in 2019 is PhP 302,000, accounting 256,959 (85%) to the total cash cost. Feed, on the other hand, costs 172,033 accounting for the 56.9% of the total production costs. These inputs correspond to the net return of PhP 184,490 per hectare. 

The benchmarking analysis of the Philippine tilapia industry (hatchery and grow-out operations) was done both locally and internationally in terms of production system, farm practices, labor capacity, and technological and machinery capacity and productivity. Likewise, a competitive analysis was done based on local and international data. The performances (hatchery and grow-out operations) that were measured are fingerlings
selling costs, supply reliability, and marketing strategies.

It is observed through the benchmarking that modern farms normally have more advanced facilities, labor and technological capacities, and higher production volume than typical farms. Comparing the state of the Philippine tilapia industry to that of China, the latter has invested on more advanced facilities and technological and production capacities.

The identified strengths of the Philippine Tilapia Industry are the full support of government and the availability and easy access to quality seedstocks. On the other hand, high production costs and too many marketing layers are among the identified weaknesses in the industry. Further support from the government and high cost of raw materials and equipment, respectively, are some the opportunities and threats.

Where Do We Want To Go?

The collective vision, mission and goals of the Philippine tilapia industry are as follows: Vision: A globally competitive and sustainable tilapia industry that is private sector-led and market-oriented, with strong government support that will improve the quality of life
of Filipinos.

Mission: Development of a globally competitive, eco-sensitive and climate resilient Tilapia Industry that is private sector-led, client driven, supply-reliable following an innovative value chain that is based on sustainable standards. Goals: (1) to increase tilapia production from 304,326.59 MT (2020) to 352,797.9 MT (2025), (2) to ensure quality and traceability of inputs and outputs, (3) to promote use of environment friendly tilapia feeds and reduce cost of feed production by utilizing locally sourced raw materials, (4) to reduce fishery postharvest losses from 25% to 10% in five years and (5) to develop and/or improve a more efficient marketing system for the tilapia industry.

To accomplish the goals of the short-term plans of the roadmap: (1) to increase tilapia production from 304,326.59 MT (2020) to 352,797.9 MT (2025), through the following strategies: (a) broodstock improvement for resilient tilapia strain, (b) broodstock development and maintenance, (c) fingerling production and distribution, (d) modernization of BFAR Tilapia Central, Satellite Hatcheries and National Centers and private sector, (e) technology dissemination (f) province-led agriculture and extension system, (g) diversification, (h) research for development for increase production,
(i) agri-industrial business corridors, (j) expansion of culture areas, and (k) fisheries career system, (2) ensure quality and traceability of inputs and outputs through: (a) food safety and regulation (e.g. promotion of GAqP, biosecurity measures, regisration and accreditation of tilapia aquafarms), (b) R4Ds on emerging diseases, (c) monitoring, control and surveillance of diseases, (3) promote use of environment friendly tilapia feeds and
reduce cost of feed production by utilizing locally sourced raw materials through: (a) R4Ds and transfer of technologies on the feeding management, strategies and development of low-cost feeds, (b) R4Ds on nutrigenomics, and (c) collective action/cooperative development (4) reduce fishery postharvest losses from 25% to 10% in five years through: (a) improvement of the quality of the fishery products, and (b) improve the traceability of
tilapia export products; and (5) improve and/or develop a more efficient marketing system for the tilapia industry through: (a) equitable access and strengthen local market network, (b) accessible credit and loan programs by financing institutions, and (c) regulation of tilapia market price.

Moreover, the medium-term plan is to contribute to the increase in fisheries production, food sufficiency and ensure food security for the Filipino people by (1) development of climate resilient tilapia, (2) implementation of Good Aquaculture Practices (GAqP), (3) mechanization of tilapia farming, (4) application of biotechnology in tilapia disease diagnosis and treatment, (5) continue improvement of cold chain technology, (6) development of value-added products for the local and international markets, and (7) development of cost-effective feeds using locally available ingredients and (8) implementation of electronic marketing adoption.

Finally, the long-term plan on the Philippine Tilapia Industry Roadmap is to sustain resilient breed of Tilapia, modernized marketing system and globally competitive tilapia products for a food secured Filipinos by (1) enhancement of fish immunity (vaccination and formulation of immunostimulants), (2) isolation and cryoconservation of somatic cells, (3) formulation ready-to-eat tilapia products, (4) improvement of electronic marketing system (5) exportation of fish fillet and value added products, and (6) application of genomics and marker assisted selection (MAS) in tilapia breeding and production.

Who Will Do It?
The implementation of the Philippine Tilapia Industry Roadmap shall be directly supervised by the Philippine Council for Agriculture and Fisheries (PCAF). A Philippine Tilapia Roadmap-Steering Committee (PTR-SC) shall be created to ensure that all programs are implemented and targets are accomplished accordingly. 

It shall be composed of the following:
• Tilapia Growers
• Tilapia Industry Associations/Cooperatives
• Tilapia Processors Group
• Association of Feed Companies
• Philippine Council for Agriculture and Fisheries (PCAF)
• Department of Agriculture (DA)
• DA-Bureau of Fisheries and Aquatic Resources (DA-BFAR)
• DA-Bureau of Agricultural Research (DA-BAR)
• DA-National Fisheries Research and Development Institute (DA-NFRDI)
• Department of Science and Technology-Philippine Council for Agriculture, Aquatic
and Natural Resources Research and Development (DOST-PCARRD)
• Department of Environment and Natural Resources (DENR)

• Department of Trade and Industry (DTI)
• Local Government Unit (LGU)
• Southeast Asian Fisheries Development Center/ Aquaculture Department
(SEAFDEC/AQD)
• Higher Education Institutions (HEIs)
• Philippine Fisheries Development Authority (PFDA)
• Philippine Center for Postharvest Development and Mechanization (PHilMech)
• National Irrigation Administration (NIA)
• Technical Education and Skills Development Authority (TESDA)
Seven Technical Working Groups (TWG) shall be created and these are – (1) Production;
(2) Training and Extension; (3) Infrastructure; (4) Product Development; (5) Regulatory; (6) Marketing, Credit and Insurance Program; and (7) Research and Development. Each group shall be in-charge of the implementation of their respective programs. Each group shall be composed of representatives from the tilapia industry associations, feed companies, fish processors, DA (BFAR, BAR, NFRDI, PCAF) DTI, HEIs, DOST-PCARRD and LGUs.

To ensure the smooth implementation of the plans and programs for the attainment of targets, the PTR-SC, the National Fisheries and Aquatic Resources Management Council (NFARMC) and National Agriculture and Fisheries Council (NAFC) will be responsible for monitoring the progress of each program.

Monitoring teams shall also be created at the regional and provincial levels under the Regional and Provincial Agricultural and Fishery Coordinators. Representatives from the industry associations, National Government agencies such as BFAR Regional Offices and Higher Education Institutions (HEIs) will form part of the team. 

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