Portsmouth Business School

Thesis summary

My PhD is centred around the aquaculture production of tilapia and its global markets. It focuses in particular on the development of production and the local market of tilapia in Egypt.

Tilapia is one of the fastest growing aquaculture species in the world due to its biology (which makes it easy to produce), mild flavour and ease of preparation. This has led to tilapia being produced in all continents and more countries than most other farmed species and rapidly expand from markets supplying the poorest communities in developing countries to premium markets in developed countries. However, despite now being such an established product, the rapid development of tilapia production and worldwide markets are still relatively poorly understood.

This study investigates the development of tilapia in local and international markets and the interaction between different tilapia markets. The development of tilapia in international markets is investiagted by studying the US tilapia market, the world's largest importer. Local tilapia markets are investigated  by analysing the Egyptian market, the world's second largest tilapia producer. Interactions between spatially distinct tilapia markets and between different product forms are analysed by investigating the relationship between the three largest tilapia producers; South East Asia, South and Central America and Africa. The results provide an insight into the current demand for tilapia in world markets and how its future development is likely to affect tilapia producers and the seafood industry in general. As price data was more complete and readily available than that for quantities this study has primarily undertaken market integration analysis. However,  whenever possible demand analysis was also used to corroborate the market integration results and provide demand elasticities.

Pre-existing literature relating to the US market suggested that the rapid growth of tilapia demand in this market was due to tilapia taking market share from farmed catfish, wild flatfish and red snapper (Josupeit, 2005; Anderson, 2006). If correct, this would imply that the US catfish industry could instigate trade actions against tilapia imports in the same way as it has done against other seafood products in the past. Furthermore, the suggested competition between tilapia and wild fish implies a change in the consumption pattern of seafood products in the US. This is because until the 1990's the literature has indicated no competition between farmed and wild fish unless they belonged to the same species. This analysis of the US market has investigated competition between fresh and frozen fillets of US catfish and fresh and frozen fillets of tilapia. Also, the competition between fresh tilpia fillets and fresh fillets of wild sea dab, blackback flounder and whole red snapper is investigated. The results indicate that imports of fresh and frozen tilapia fillets are in different market segments, whoch fresh and frozen catfish compete in the same market. Furthermore, fresh and frozen fillets of catfish and tilapia imports do not compete in the same market whilst fresh farmed tilapia fillets compete in the same market as wild fresh fillets of sea dab, blackback flounder and wild whole red snapper.

The Egyptian market has been analysed because it is the world's second largest tilapia producer. However, despite high levels of production, the low quality of Egyptian tilapia prevents producers from exporting this fish to more profitable markets and has resulted in markets becoming saturated and prices falling. This investigation reflects on the difficulties Egyptian producers face when supplying tilapia to local markets and on their attempts to adopt the prodcuers and standards demanded by international markets. This disseration also highlights several possibilities for reducing production costs to preserve the profitability of the Egyptian tilpapia industry. Furthermore, this investigation provides the first sea food market analysis in Egypt. The study has considered the competition between different sizes of whole fresh tilapia and whole fresh mullet. The results indicate the three different sizes of whole fresh tilapia are in the same market together with the smallest size of whole fresh mullet. The largest size of whole fresh mullet was found to be in a seperate market from any of the sizes of whole fresh tilapia investigated.

Finally, this dissertation considers the relationship between tilapia from the three largest production regions; South East Asia, Africa and South and Central America. Differences in their methods of production, transport costs and qualities have been considered and market analysis undertaken to determine whether tilapia products from different producers can essentially be considered the " same" product. This knowledge is important if the fast development of farmed tilapia worldwide is to be better understood.