China’s tila
pia producers are upbeat this year thanks to better, more stable farm-gate prices alongside stronger domestic demand, according to a fisheries advisor in the country’s top tilapia producing region, Hainan.
Farm-gate prices for tilapia since late March have ranged from RMB 4.7 (USD 0.76, EUR 0.57) to RMB 5 (USD 0.81, EUR 0.61) per 500 grams (for fish heavier than 500 grams) — nearly RMB 1 (USD 0.16, EUR 0.12) higher than the price last year. This represents a “reasonable profit” to keep farmers in the business, said Han Han, the Hainan-based country manager for the Sustainable Fisheries Partnership (SFP). In recent years she saw farmers exit the industry when export demand slumped due to the international economic crisis.
However, while prices are up sales from hatcheries show weaker stocking of fingerlings. “This might indicate the fears from previous years of low pricing and high disease risks still impact some farmers.” Meanwhile, said Han, several processors have complained that it is difficult for them to find raw materials.
Increased demand from domestic consumers is also good news for local fish farmers. Han says she’s heard from processors supplying domestic markets that there’s been an increase in local consumption in southwestern provinces like Sichuan, Guangxi and Yunnan. “We have heard similar comments from people who have tilapia hatchery businesses in those regions.”
In a bid to grow domestic demand for tilapia the China Aquatic Products Promotion & Marketing Association (CAPPMA) and several leading processors have hired marketing agents to draft strategic plans for tilapia branding and product design for Chinese consumers.
“I’ve noticed that the conversation on domestic marketing among key processors has started changing from concepts to actions,” said Han, whose organization has been promoting better practices for more sustainable tilapia production in Hainan.
New stringent measures for quality control and food safety are also setting new standards for the industry, Han said. She believes the trends bode well for more sustainable development of the tilapia supply chain here and points to improved collaboration in the industry as a source of optimism for better quality tilapia.
SFP is assisting Hainan’s tilapia sector in developing a Code of Good Practice (CoGP) devised from studies of Scottish salmon producers' group and others. The SFP is holding three small roundtables in Hainan’s three main counties, bringing together producers, retailers, officials and processors. The goal is to help the SFP work more closely with buyers and retailers to further push processors to assist farmers with executing the CoGP,
Lower disease levels in 2013 make for more positive news for the Chinese tilapia sector. “I’ve heard from a few group members saying that this year they’ve encountered much fewer disease problems,” Han said. “From following the industry media, I have noticed very few news items mentioning disease problems for tilapia this year.”
Han credits a change of farmer’s practices such as lower stocking density, more closely-monitored water, more efficient feeding schemes, and good weather. Guangdong and Hainan have not experienced as many days of high temperature as they had in previous years.
Cracking down on overuse of medicinal drugs and chemicals has been another priority for industry associations and government in Hainan. The Hainan Aquatic Product Processing and Marketing Association, the counterpart of CAPPMA in Hainan Province, has requested a zero-tolerance to sulfa-drugs violation in tilapia starting this month, Han said. “That means if any violation detected before pre-harvesting inspection, the fish is not eligible to enter any processing plants. Suppliers of fish face fines of at least RMB 1/500 g lower from the original price,” said Han, who expects similar measures to be originally rolled out to other provinces.
Several processors, meanwhile, have increased their frequencies of inspection on certain chemicals, and raised bars higher to make sure their products are safely meeting buyer’s requirements. “Farmers said some plants that used to only measure fish in size and weight now ask to inspect sample fish on chemical residuals and some even send their technician to test water quality occasionally.”
The SFP has been advocating for a zonal management approach for aquaculture over the past year with an aquaculture team led by its new aquaculture director, Anton Immink, an expert in the Scottish salmon industry from his days at the U.K.’s Stirling University.
“We believe the Scottish salmon industry happens to provide a good example of industry-led initiatives to mitigate environmental and disease risks, and to promote sustainability in aquaculture through a series of collaborative and self-regulated measures that help the industry itself grow into a united voice with more responsibility as well as capacity.”
The SFP has been helping retailers, under pressure to secure sustainable supply from fish farms and processing plants, to source sustainable tilapia. “What we’re doing in Hainan has raised a lot of attention and interest from buyers and retailers,” said Han.
Communication between players in the tilapia industry has been made easier by China’s vibrant online social networking scene — and in particular microblogging sites like Weixin and Weibo. These have helped spread knowledge among Chinese tilapia stakeholders, said Han. “I joined one Weixin group dedicated for people caring for tilapia, created by one of the hatchery owner, and often get comments about pricing, disease and sales.”
The SFP is hoping that better pricing will be one of the potential benefits but not the ultimate one of its sustainable approach to tilapia production.
“Both buyers and producers will benefit from a stable, predictable and responsible industry in the long run. We cannot say that buyers and retailers will guarantee a better price immediately for those adopting CoGP although we encourage some pilot processors and buyers to consider economic rewarding measures at some point,” said Han. “But it is obvious that with such industry-led initiatives Chinese tilapia producers will become more united, reliable and confident, then they’ll have more power in bargaining the price.”
pia producers are upbeat this year thanks to better, more stable farm-gate prices alongside stronger domestic demand, according to a fisheries advisor in the country’s top tilapia producing region, Hainan.Farm-gate prices for tilapia since late March have ranged from RMB 4.7 (USD 0.76, EUR 0.57) to RMB 5 (USD 0.81, EUR 0.61) per 500 grams (for fish heavier than 500 grams) — nearly RMB 1 (USD 0.16, EUR 0.12) higher than the price last year. This represents a “reasonable profit” to keep farmers in the business, said Han Han, the Hainan-based country manager for the Sustainable Fisheries Partnership (SFP). In recent years she saw farmers exit the industry when export demand slumped due to the international economic crisis.
However, while prices are up sales from hatcheries show weaker stocking of fingerlings. “This might indicate the fears from previous years of low pricing and high disease risks still impact some farmers.” Meanwhile, said Han, several processors have complained that it is difficult for them to find raw materials.
Increased demand from domestic consumers is also good news for local fish farmers. Han says she’s heard from processors supplying domestic markets that there’s been an increase in local consumption in southwestern provinces like Sichuan, Guangxi and Yunnan. “We have heard similar comments from people who have tilapia hatchery businesses in those regions.”
In a bid to grow domestic demand for tilapia the China Aquatic Products Promotion & Marketing Association (CAPPMA) and several leading processors have hired marketing agents to draft strategic plans for tilapia branding and product design for Chinese consumers.
“I’ve noticed that the conversation on domestic marketing among key processors has started changing from concepts to actions,” said Han, whose organization has been promoting better practices for more sustainable tilapia production in Hainan.
New stringent measures for quality control and food safety are also setting new standards for the industry, Han said. She believes the trends bode well for more sustainable development of the tilapia supply chain here and points to improved collaboration in the industry as a source of optimism for better quality tilapia.
SFP is assisting Hainan’s tilapia sector in developing a Code of Good Practice (CoGP) devised from studies of Scottish salmon producers' group and others. The SFP is holding three small roundtables in Hainan’s three main counties, bringing together producers, retailers, officials and processors. The goal is to help the SFP work more closely with buyers and retailers to further push processors to assist farmers with executing the CoGP,
Lower disease levels in 2013 make for more positive news for the Chinese tilapia sector. “I’ve heard from a few group members saying that this year they’ve encountered much fewer disease problems,” Han said. “From following the industry media, I have noticed very few news items mentioning disease problems for tilapia this year.”
Han credits a change of farmer’s practices such as lower stocking density, more closely-monitored water, more efficient feeding schemes, and good weather. Guangdong and Hainan have not experienced as many days of high temperature as they had in previous years.
Cracking down on overuse of medicinal drugs and chemicals has been another priority for industry associations and government in Hainan. The Hainan Aquatic Product Processing and Marketing Association, the counterpart of CAPPMA in Hainan Province, has requested a zero-tolerance to sulfa-drugs violation in tilapia starting this month, Han said. “That means if any violation detected before pre-harvesting inspection, the fish is not eligible to enter any processing plants. Suppliers of fish face fines of at least RMB 1/500 g lower from the original price,” said Han, who expects similar measures to be originally rolled out to other provinces.
Several processors, meanwhile, have increased their frequencies of inspection on certain chemicals, and raised bars higher to make sure their products are safely meeting buyer’s requirements. “Farmers said some plants that used to only measure fish in size and weight now ask to inspect sample fish on chemical residuals and some even send their technician to test water quality occasionally.”
The SFP has been advocating for a zonal management approach for aquaculture over the past year with an aquaculture team led by its new aquaculture director, Anton Immink, an expert in the Scottish salmon industry from his days at the U.K.’s Stirling University.
“We believe the Scottish salmon industry happens to provide a good example of industry-led initiatives to mitigate environmental and disease risks, and to promote sustainability in aquaculture through a series of collaborative and self-regulated measures that help the industry itself grow into a united voice with more responsibility as well as capacity.”
The SFP has been helping retailers, under pressure to secure sustainable supply from fish farms and processing plants, to source sustainable tilapia. “What we’re doing in Hainan has raised a lot of attention and interest from buyers and retailers,” said Han.
Communication between players in the tilapia industry has been made easier by China’s vibrant online social networking scene — and in particular microblogging sites like Weixin and Weibo. These have helped spread knowledge among Chinese tilapia stakeholders, said Han. “I joined one Weixin group dedicated for people caring for tilapia, created by one of the hatchery owner, and often get comments about pricing, disease and sales.”
The SFP is hoping that better pricing will be one of the potential benefits but not the ultimate one of its sustainable approach to tilapia production.
“Both buyers and producers will benefit from a stable, predictable and responsible industry in the long run. We cannot say that buyers and retailers will guarantee a better price immediately for those adopting CoGP although we encourage some pilot processors and buyers to consider economic rewarding measures at some point,” said Han. “But it is obvious that with such industry-led initiatives Chinese tilapia producers will become more united, reliable and confident, then they’ll have more power in bargaining the price.”
