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Affectedby cold wave, this year’s over-winter fish is just 30% that of last year. But the fry stocking quantity drops sharply about 30% in the first half of 2016. Although the ponds will not be kept empty, a large number of farmers choose to lower the farming density while watching for market condition. The export also meets troubles because of the sulfanilamide residue problem in last year. This year, the processing factories are strict about the drug residue problem, which almost disappears in Guangdong and Guangxi province. When everyone thinks there would be a good market for tilapia in 2016, the price, however, continues to fall. In April, the highest price for one jin above size is 4.5 yuan/jin, which decreases to 4 yuan/jin. After the Dragon Boat Festival, it falls below the cost price of 3.75 yuan/jin. At present, the general size of the fish is half jin to one jin, which is expected to go to market in June and July.
Present cultivating status under three different farming modes
Maoming and Zhaoqing, Guangdong
Maoming farmed as many as more than 0.3 million mu of tilapia. Apart from a small part of mixed farming of fish and shrimp, the main farming mode is vertical culture. The farming area is about 0.13 million mu in Zhaoqing, mainly by vertical culture. The fish will be fed by excrement of livestock before the fish grows into 200g, and after that, fish meal will be used. Because excrement of livestock may cause drug residue, many farmers would do the drug residue test by themselves. After making sure the fish meet their demand, the factories will purchase the fish. This farming mode can save the cost about 2.5 yuan/jin. Up to 13rd June, factories in Gaoyao buy the fish at 4.1 yuan/jin. One jin size above fish in Maoming is sold at below 3.75 yuan while 2.85 yuan is the price for one jin size below fish. Removing the transportation cost, the pond price for more than one jin size fish is just 3.55 yuan/jin.
Zhanjiang, Lianjiang and Leizhou
Because of the depressed market, the feeding quantity decreased. The farmers may feed 10 bags of feed before, but now it’s only 2 or 3 bags. Some fish has dead in the ponds with bad water quality. In general, about 40%-50% ponds has already stopped the feeding. Only 10%-20% ponds cultivate the fish with enough feed. Most of the farmers are watching for the market condition to feed the fish. About 20%-30% ponds don’t stock the fry anymore or choose to culture the four Chinese family fishes (black carp, grass carp, chub and bighead carp).other fishes. Fish and shrimp mixed farming situation is relatively better in the regions with seawater. And the farmers here can obtain government allowance for shrimp farming, so these farmers are positive to feed the fish.
Hainan
Most regions in Hainan employ intensive farming of tilapia. But, now, most farmers hold a wait-and-see attitude because the flat market. The farming density decreased and only a small quantity of feed is used in the pond. The farmers are waiting for the price going up. In normal situation, they would stock the fry in May, but they are still waiting at present. On one hand, the bigger fish and smaller fish has to be separated in different ponds. On the other hand, a large number of farmers are reluctant to stock the fry without big profits. They can culture 2 or 3 seasons of fish before, but now just one or two season.
The price of intensively-farmed fish is near to 4 yuan/jin. In 13rd June, more than one jin size tilapia is sold at 3.9-4.0 yuan/jin. The cash price is 3.7 yuan/jin, below the base price.
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Guangxi
There are a total of 0.18 million mu of tilapia farming area in Guangxi, mainly the shrimp and fish-mixed farming mode, and four Chinese family fishes-mixed farming mode. As for the shrimp and fish-mixed farming, 1, 000 fish and 3, 000 white-leg shrimp will be stocked into one mu area while 1, 500 tilapia and 1, 500 family fishes into one mu area. Each year, there will be one or two seasons of farming. In 2016, about 60% fish will be sold to domestic market and 40% to processing factories. The fish is expected to go to market in August whose price is not influenced by international market to a large extent. The price is estimated at more than 4 yuan/jin.
Because export fish already meet the standards and streptococcus is more likely to break in the environment with the high temperature, farmers have no choice but to sell the fish at low prices. But the processing factories’ orders drop and they plan to reduce its processing capacity to half. So, the processing factories and the farmers have to play the game between themselves. The continuous price dropping is the outcome of lose-lose situation. It’s expected the price will back to improve after August.
Tilapia industy is export-depended industry. Hainan, Guangdong and Guangxi are the main producing region of tilapia in China. The processing factories in Guangxi has lost its advantages because the factories in Guangdong can gain tax reimbursement for export from the government, and the sulfanilamide residue exceeds the export standards, which forced Guangxi to shift its market from the world to domestic consumers. Unless other farming modes make a breakthrough in the current situation to let the fish price back to normal, intensive farming is not suitable to Chinese characteristic farming in short term.
The flat market of tilapia is not only the problems in processing factories but also the problems in the whole tilapia industry. Over-capacity, insufficient industry agglomeration, loose organization, lack of bargaining power, no development in deep processing, no additional value…are all the problem waiting to be dealt with.
