Taiwan Tilapia Production Zone Exclusive for Exporting

Fu-Sung (Frank) CHIANG, Ph.D.Professor, National Taiwan Ocean UniversityExecutive Director, Taiwan Tilapia Alliance

Fu-Sung (Frank) Chiang

! Consumer Economics, Ph.D. Cornell University, USA

! Food and Resource Economics, M.S. University of Florida, USA

! Executive Director, Taiwan Tilapia Alliance, 2002-present

! Advisor, Keelung Tourism Association! Committee Member, Fishery Advisory

Committee, Council of Agriculture, 1998-2002

Outlines

! Why Aquaculture? Why Tilapia?! Current Developments of Taiwan

Tilapia Industry! Taiwan’s Tilapia Exports! Taiwan Tilapia Production Zone

Exclusive for Exporting! Concluding Remarks

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I. Why Aquaculture? Why Tilapia?I. Why Aquaculture? Why Tilapia?

! Why aquaculture?! Fish of the 21st. century: Tilapia! The role of Taiwan on the aquaculture sector

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Why Aquaculture?Why Aquaculture?

Peter F. Drucker“Managing in the Next Society: Beyond the Information Revolution”

St. Martin’s Press, 2002

"Drucker (2002) predicted that the “bio-technology”and “aquaculture” will be the “new industry” in the next fifty years.

"He used salmon as an example to describe the relationships between wild catch and fish farming products.

"In addition, he believes that new and different species will be developed in the fish farming besides salmon.

"Thus, “aquaculture” should play an important role in providing the animal protein to human beings.

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Rapid growth in aquaculture productionImportant food supplyContribution in the economics: employment and businessDevelopment in maximizing its fully potential contributionEnvironmentally responsible and social acceptable industryQuality and safety toward a sustainable industry

Global Trends in AquacultureGlobal Trends in Aquaculture

Why Tilapia?Why Tilapia?

Tilapia

! Tilapia is the fish for the 21th century! Omnivorous fish! High density viable! The most labor-saving aqua-farming

sector! The cheapest aqua-cultured white meat

that compliments the natural environment

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II. Current Developments of Taiwan Tilapia Industry

! Tilapia Production in Taiwan! Taiwan’s Flagship Product! About the Taiwan Tilapia Alliance, T2A! New Product R&Ds

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Tilapia HistoryTilapia History•• In In 19461946,, from Singapore from Singapore

-- ChenChen--HeiHei WUWU and Chiand Chi--chau chau KUOKUO

-- Oreochromis mossambicusOreochromis mossambicus

•• In In 19491949,, named named WuWu--KuoKuo YuYu (fish)(fish)

The Development of Taiwan Tilapia Industry

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•• In 1966, In 1966, from Japanfrom Japan

-- O. O. nilotcanilotca-- O. O. nilotca nilotca ×× O. O. mossambicusmossambicus

•• InIn 1974, from Israel-O. aurea -O. aurea × O. nilotica

•• InIn 1968, Red tilapia- O. mossambicus albino

Tilapia Production in Taiwan

! Taiwan’s tilapia production and value are 85,414 MT and US$85 millions in 2003.

! The estimated tilapia production and value in 2004 are about 90,000-100,000 MT and US$85 millions.

! During 2003, tilapia production accounted for about 23% of the total aquaculture production in Taiwan.

Strategies of Taiwan Tilapia Industry

! Form a strategic partnership by all Taiwanese domestic producers, marketers, processors, and traders, i.e., Taiwan Tilapia Alliance

! Promote product certification and warranty to ensure the quality and food safety, e.g. GAP

! Development of high value-added products, e.g. Gelatin and Battered & Breading Tilapia

! Promote domestic demands & international cooperation

! Diversify the export markets

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About the About the T2A""TT22A was formed in 2002A was formed in 2002""Through generic advertising to create an image of Through generic advertising to create an image of

superior qualitysuperior quality""Actively participate the exhibits worldwideActively participate the exhibits worldwide""To educate farmers via training courses/workshopsTo educate farmers via training courses/workshops""Act as a gateway among industry, academia and Act as a gateway among industry, academia and

governmentgovernment""To draft/Implement the Code of Practices for To draft/Implement the Code of Practices for

Tilapia FarmingTilapia Farming""International JointInternational Joint--Venture/Cooperation Programs Venture/Cooperation Programs

Taiwan’s Flagship Products

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Fish NuggetFish Nugget oror Fish PortionFish Portion

Fish BurgerFish Burger

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Gelatin is a protein derived Gelatin is a protein derived from tilapiafrom tilapia’’s skin ands skin and

can used to make capsulescan used to make capsules

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III. Taiwan’s Tilapia Exports

! Taiwan’s Tilapia Exports ! US tilapia Imports! Commodity vs Niche Products:

Stable Price or Declining Price for the Tilapia Products in the Future?

Taiwan’s Tilapia Exports

! Taiwan’s tilapia exports increased from 15,328 MT in 1996 to 39,718 MT in 2003, an increase of 159% in five years, accounted for about 8% of the total Taiwan fishery product exports.

! Taiwan exports both frozen whole-tilapia and frozen fillets.

! Frozen breaded tilapia nuggets and gelatin are another new exporting products.

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•• China tilapia becomes TaiwanChina tilapia becomes Taiwan’’s largest competitor since 2002s largest competitor since 2002

U.S. Tilapia Imports in Value, 1992 - 2004

Photo by F. Chiang

Photo by F. Chiang

Commodity vs Niche Products! Stable Price or Declining Price for the

Tilapia Products in the next 5 years?

00--1.0 (1.0 (--25%)25%)--0.1 (0.1 (--10%)10%)ChangeChange

66330.90.920042004

66441120032003

Fresh Fillet Fresh Fillet (US$/Kg)(US$/Kg)

Frozen Fillet Frozen Fillet (US$/Kg)(US$/Kg)

Whole Whole Frozen Frozen

(US$/Kg)(US$/Kg)

YearYear

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IV. Tilapia Production Zone

!! Application of Good Aquaculture Application of Good Aquaculture Practice to Tilapia Farming Practice to Tilapia Farming

! Current Status and Future Perspectives

Codes of Taiwan Tilapia

Production Zone (Cluster)

Certification (GAF)

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The Contents of the Code of Practices for Tilapia Farming in Taiwan

•• Food SafetyFood Safety•• Design and Construction of FarmsDesign and Construction of Farms•• Feed and Feed UseFeed and Feed Use•• General Pond OperationGeneral Pond Operation•• Health ManagementHealth Management•• Therapeutic Agents and Other ChemicalsTherapeutic Agents and Other Chemicals•• Effluents and Solid WastesEffluents and Solid Wastes•• Community and Employee RelationsCommunity and Employee Relations•• Conservation of BiodiversityConservation of Biodiversity

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Good Aquaculture FarmGood Aquaculture Farm!! On Jan. 30, 2004, the Council of Agriculture On Jan. 30, 2004, the Council of Agriculture

(COA), Taiwan set up the regulations for (COA), Taiwan set up the regulations for certifying the certifying the ““Good Aquaculture Farm, Good Aquaculture Farm, GAF.GAF.””

!! The Fisheries Agency of the COA is responsible The Fisheries Agency of the COA is responsible for implementing the GAF regulations.for implementing the GAF regulations.

!! The Aquaculture Development Association and The Aquaculture Development Association and Taiwan Tilapia Alliance are involving in the Taiwan Tilapia Alliance are involving in the certifying process.certifying process.

Procedure of the CertificationProcedure of the Certification

!! Farmers submit the Application form Farmers submit the Application form (including farm(including farm’’s characteristics, license, s characteristics, license, certificates, pond layouts, etc.)certificates, pond layouts, etc.)

!! First EvaluationFirst Evaluation: the COA: the COA’’s appointed s appointed committee conducts the evaluation.committee conducts the evaluation.

!! Second EvaluationSecond Evaluation: on: on--site visit and site visit and contract signing.contract signing.

!! Training Courses & WorkshopsTraining Courses & Workshops!! Third EvaluationThird Evaluation: 2 times of : 2 times of

Environment and Residues AnalysesEnvironment and Residues Analyses

Training Courses and WorkshopsTraining Courses and Workshops

!! Introduction to ComputerIntroduction to Computer!! Water Quality Control and TestingWater Quality Control and Testing!! Drug Management and AnalysisDrug Management and Analysis!! Fry Production and GrowFry Production and Grow--Out Out

ManagementManagement!! Fish Disease ControlFish Disease Control!! Farm ManagementFarm Management!! Marketing and Trade Marketing and Trade

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Environment and Residues AnalysesEnvironment and Residues Analyses(Selected Items)(Selected Items)

!! E. E. Coli Coli (Meat)(Meat)!! Chloramphemium Chloramphemium (Meat)(Meat)!! Furazolidone Furazolidone (Meat)(Meat)!! Nitrofuran Nitrofuran (Meat)(Meat)!! Copper (Water & Meat)Copper (Water & Meat)!! Cadmium (Water & Meat)Cadmium (Water & Meat)!! Zinc (Water & Meat)Zinc (Water & Meat)

Tilapia Production Zone (I)Tilapia Production Zone (I)

12.612.611,52511,525480480328.7328.7106106TotalTotal

3.33.34,3204,3201441441181182525TaiTai--nannan

3.83.83,3693,36915615693.693.65252ChiaChia--yiyi

5.55.53,8363,836180180117.1117.12929YuYu--linlin

Value Value (US M$)(US M$)

Production Production (M.T.)(M.T.)

PondsPondsSizeSize(Hectare)(Hectare)

No.No.CountyCounty

Tilapia Production Zone (II)Tilapia Production Zone (II)

17.117.111.911.946.346.32525TaiTai--nannan

19.119.19.49.449.149.1106106TotalTotal

20.920.98.28.250.950.95252ChiaChia--yiyi

17.817.89.39.348.048.02929YuYu--linlin

Avg. Avg. Experience Experience (in Year)(in Year)

Avg. Avg. Education Education (in Year)(in Year)

Avg. AgeAvg. Age(in Year)(in Year)

No. No. of of

FarmsFarms

CountyCounty

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V. Concluding Remarks

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Aquaculture + BioAquaculture + Bio--TechTech

!! Aquaculture will become the main source Aquaculture will become the main source of animal proteinsof animal proteins

!! BioBio--technology (including genetically technology (including genetically modified techniques ) on fries (seeds), modified techniques ) on fries (seeds), water treatment, fish disease control, and water treatment, fish disease control, and feedsfeeds

!! Issue of consumer acceptance toward Issue of consumer acceptance toward GM fish and fish productsGM fish and fish products

Eat More Tilapia!Produce More Tilapia!

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Taipei 101 Taipei 101 BuildingBuilding

Thank You!