While volumes continue to move upwards, production costs are rising steadily so margins are becoming increasingly thin.
By Eric Roderick

The global production of tilapia is second to that of carp, but it is predicted to assume the number one position soon. It is currently produced in over 150 countries in a wide range of culture conditions: in ponds and cages to intensive and super-intensive recirculation aquaculture systems (RAS), biofloc systems, as well as in aquaponics systems. Over 7.2 million tonnes of tilapia were produced in 2021 with a global value of over USD14.1 billion. Despite an apparent slowdown in consumption in the USA and Europe, the production in this sector is still increasing.
Global tilapia production is expected to reach 9 million tonnes in 2030 with an estimated value of USD2.3 billion. Rabobank (Sharma and Nikolik, 2022) reported that global tilapia production increased by 4.3% in 2022 and 4.8% in 2023 (Figure 1). Global demand for tilapia is projected to increase by 4.6% over the next 10 years. This expansion is fuelled by consumers’ increased focus on health and dietary choices, particularly in the USA and Europe, as well as soaring prices of other seafood species in the global markets. On the negative side, production costs are rising steadily and margins are becoming increasingly thin so efficiencies will have to be improved.
Green credentials
There has been a rapid global expansion of tilapia production during the last 10 years, especially in the big agri-industrial businesses using intensive rearing systems. Tilapia is a major global commodity and provides food security for millions of people in developing countries. Tilapia is now part of the global “white fish” market, competing with wild caught white fish, as well as farmed pangasius and catfish. With its green credentials and its ability to convert most forms of plant protein into a high-quality firm and mild tasting flesh, tilapia is seen as a real challenge to the dominance of these other white fish, particularly in terms of the value-added convenience food market which is expanding year on year.
Post recovery demand and trade
The long-awaited recovery in the seafood sector has finally arrived after the Covid 19 disruption. In the fisheries and aquaculture sectors, this pandemic caused a dramatic slump in demand, with retailers, restaurants and large- scale buyers having to scale down or ceased activities. According to FAO, fish and fish products are among the most heavily traded food products in the world. Tilapia, an important internationally traded product, was also impacted significantly by the recent trade war between the USA (one of the main importers and consumers of tilapia) and China (the world’s biggest producer and exporter of tilapia products). The 25% import tariff increases imposed by the USA on Chinese tilapia imports had negatively impacted margins along the supply chain.
This allowed other countries to significantly increase their production and subsequent exportation of tilapia into the USA as they can now be far more competitive on prices. Colombia and Brazil have increased their exports to the USA, as they can now compete more effectively with Chinese imports. Colombia is currently the main supplier of fresh fillets to the US market and continues to invest in sustainable development and improvement of production standards to meet the US strict import requirements. Colombia has several new tilapia projects on-going and there is a big push by the Colombian government to increase domestic consumption too. Whole red tilapia is the most popular product in the domestic market in Colombia.
Production
China is still the main producing country at 1.75 million tonnes in 2022, followed by Indonesia with 1.2 million tonnes and Egypt with over 1 million tonnes (an increase of 80% over the last decade and nearly all consumed domestically); altogether these three countries account for almost 75% of the total global production. Bangladesh, the Philippines and Thailand are also expanding, with Bangladesh producing over 370,000 tonnes and not showing any sign of a slowdown.
South and Central America are the fastest growing regions driven by Brazil and followed by Mexico and Colombia, where most of the production is either consumed domestically or exported as fresh fillets daily to the USA. There is a steady increase in most of the main producer countries of Honduras, Costa Rica, and Colombia. Brazil is currently the 4th largest producer where major expansion is occurring, mostly to supply local demand but also to compete in an overcrowded export market into the US. Brazil produced 530,000 tonnes in 2021 and tilapia accounted for over 60% of Brazil’s total aquaculture production.
The Brazilian Agricultural Research Company (EMBRAPA) reported that 4,862 tonnes of tilapia worth USD14.1 million were exported in the first half of 2022. This represents a 32% increase in volume and a 133% increase in value over the same period last year. Brazil has emerged as a strong contender in the frozen whole tilapia market, with exports in the first half of the year increasing in volume by 575% over 2021. Reports indicate that domestic demand is strong. New investments in Brazil include Tilabras which secured USD9.7 million in October 2022 from Ocean 14 Capital Fund. Tilapia farming is Brazil’s largest aquaculture industry, helped by the abundance of freshwater (10 million hectares) and its tropical climate. In Brazil tilapia products represent about 98% of Brazilian aquaculture.

The US is the largest importer of tilapia, but domestic production has remained static for many years as it is not possible to compete on prices with frozen whole tilapia from Asia and fresh fillets from Latin America. The only viable option for big US producers like the vertically integrated Blue Ridge Aquaculture in Virginia which claims to be the largest indoor tilapia farm in the world, is to supply live tilapia mainly for the Asian market throughout the USA and Canada. They get a premium price, but this is a niche market. Traceability, freshness and locally produced (low food miles) are becoming important now.
Regal Springs, the largest vertically integrated tilapia producer in the world, plans to further increase production in 2023 with most of the growth coming from their Mexican and Honduran operations. It produced 68,000 tonnes in 2022 with farms in Honduras producing 28,000 tonnes Indonesia 26,000 tonnes and Mexico 14,000 tonnes. Mexico is where most of the increase will be generated,

with a planned 30-35% increase in production as new farms come on-line fully. Regal Springs has started using blockchain technology to support the full traceability of its Naturally Better Tilapia brand range in Europe, the first aquaculture white fish producer to do so. The company recently received USD14 million in capital commitments that supplement more than USD20 million invested in operations in the last two years highlighting investor confidence in tilapia.
In Asia, Vietnam is expanding its tilapia production supported by its government’s efforts to raise production and create another whitefish export commodity with plans to double production by 2023. The Philippines is also increasing its tilapia production with strong domestic demand. Vera Bella a new Filipino company is marketing tilapia ice cream and tilapia cookies with good uptake by supermarkets. India has also increased production significantly to replicate the success in Bangladesh.

The Middle East is a latecomer to tilapia aquaculture; rising food security issues and increasing importation costs are reasons why many Middle East countries are beginning to invest heavily in aquaculture to reduce their dependence on expensive imported products. High imported feed costs, low seed availability and limited local technical skills are the main obstacles which need to be addressed. With the shortage of water, many high- tech RAS and aquaponics projects are under construction throughout the region. Saudi Arabia has demonstrated the potential of aquaculture there with the success of its huge shrimp farm.
Africa, the home of tilapia, is only recently expanding its aquaculture industry, with investors eager to capitalise on the growing demand for tilapia throughout Africa due to the dramatic decline in capture fisheries over the last few years through overfishing. Driving the increase are Aller Aqua, Skretting, Nutreco and De Heus which have built new feed mills to supply high quality affordable feed to the industry. Many new hatcheries are supplying good quality fry and fingerlings.
African tilapia production usually means Egyptian production plus a small percentage spread thinly throughout Africa. There are new farms planned in Namibia, Rwanda and Uganda. Uganda’s “Aquaculture parks” on Lake Victoria are driving the expansion there. Yalelo, Chicoa and Victory Farms are all expanding their production to meet rising demand fuelled by the massive decline in wild catches. Victory Farms have recently received a USD35 million funding for its farms in Kenya and Rwanda, with plans to build new farms in Ethiopia Uganda and Tanzania.

Across sub–Saharan Africa annual increases of 10% are currently predicted. Aqua Spark, the global aquaculture investment company has announced investments of USD50 million in Africa with promises of USD300 million more in the coming years. These investments reinforce the belief that African aquaculture will finally deliver.
Threat from Streptococcus
As with all rapidly expanding agricultural enterprises, diseases tend to accompany global expansion. Historically the biggest threat to tilapia health was through Streptococcus spp. infections (Streptococcus agalacticae and S. iniae) which caused mortality ranging from 40- 80% resulting in significant economic losses especially when larger fish are affected.
Spring Genetics (Part of the Benchmark group) is undertaking genetic selection breeding programs to provide resistance to both Streptococcus species mainly in Latin America. Genomar has been marketing its Streptococcus resistant strains in Asia since 2021 under the brand name “Genomar strong” after a 5-year R&D program.
Tilapia lake virus (TiLV) is still causing high mortality and many governments require TiLV free health certificates for imports of new tilapia stocks. There appears to be some resistance building in the populations exposed to TiLV. Also, the invasive nature of tilapia is being highlighted. As biodiversity issues become more important globally, many countries restrict imports of non-native species or only allowing them into closed RAS with high biosecurity status.
Many tilapia species can hybridise leading to loss of genetic purity in several of the endemic tilapia species. More research is needed to evaluate more of the lesser- known strains and species of tilapia. Some of these could have valuable genetic traits to help the industry expand and be more sustainable in the future.
Reference
Sharma and Nikolik, 2022. What To Expect in the Aquaculture Industry in 2023. https://research.rabobank.com/far/en/sectors/animal-protein/ what-to-expect-in-the-aquaculture-industry-in-2023.html
Eric Roderick is a tilapia specialist, based
in Wales, UK.
The article was published in issue July/August 2023 AQUA Culture Asia Pacific