Tilapia is one of the most sales seafood products in the world. For the year 2020, the tilapia market is like a rocket despite the pandemic influence. The price of tilapia stays at an extremely high level, and the demand never goes low.
China is the most extensive farming country in tilapia. From last year, China exported over 75.53% of the global tilapia products in 2020. And America imported around 48.92% tilapia over the whole tilapia market in 2020.
Due to the freight cost and the raw marital shortage situation, the tilapia market meets new challenges.
The Exchange Rate
In the Chinese market, the exchange rate gave the factory a bit of challenge. The price in the farm keeps increasing in the RMB rate, but the price they offer to the importer is the USD rate. The slight difference in the rate makes the factory profits get a bit lower.
The feed meal price.
The feed price now is about doubled as the level of last year. As the global economic status stays at a low level, the feed price will keep increasing. As for farmers, they want the factory to improve the tilapia raw material local price to ensure the profits of tilapia farming. But for tilapia, it is popular mainly because it is a cheap fish. If the tilapia price gets too high, then it will lose its market. The local tilapia increased 5.2% like last year, which is the highest level of the past three years. But still, some farmers turn to farm other more profitable fish like barramundi and sea bass.
The farming situation last year is so bad. 40% of tilapia is dead because of the cold weather, making the supply chain of tilapia mass. Factories are full of orders, but the raw material is less than the orders. In the situation, some client they find substitutional products to buy like panga.
Some factories already know the challenges ahead, and they start to focus on the Chinese domestic market with big-sized fillets. Tilapia is tagged as Hainan tilapia will supply in the Chinese domestic market. With the high freight cost to the exporting market, the domestic market seems attractive to some factories and farmers.
Although the tilapia price increased 11.27% from January 2020 to March 2021, the export number is less than 2019 by 25%. How can the tilapia market go through the challenges as the exchange rate, the feed meal price, the less seeding situation, and the high freight cost?
The new season, a summer season, is coming in June. The temperature is suitable for tilapia growing. In the next half year, the influence of the pandemic and the Even Given case will be easy. But the price of tilapia is almost impossible to decrease due to the continuously high demand. If the freight cost keeps increase, the tilapia market will share some focus in the domestic market. In 2021, tilapia farming will get back to 1.8 million tons. But how much will be in the export market? We will find the answer at the end of 2021 or maybe the first two months after the new season because the Christmas purchase will usually start in August.