Taiwan Tilapia Production Zone Exclusive for Exporting

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1 Taiwan Tilapia Production Zone Exclusive for Exporting Fu-Sung (Frank) CHIANG, Ph.D. Professor, National Taiwan Ocean University Executive Director, Taiwan Tilapia Alliance

2 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,

3 Outlines! Why Aquaculture? Why Tilapia?! Current Developments of Taiwan Tilapia Industry! Taiwan s Tilapia Exports! Taiwan Tilapia Production Zone Exclusive for Exporting! Concluding Remarks

4 I. Why Aquaculture? Why Tilapia?! Why aquaculture?! Fish of the 21st. century: Tilapia! The role of Taiwan on the aquaculture sector 4

5 Why Aquaculture? 5

6 Peter F. Drucker Managing in the Next Society: Beyond the Information Revolution St. Martin s Press, 2002

7 "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.

8 Global Trends in Aquaculture Rapid growth in aquaculture production Important food supply Contribution in the economics: employment and business Development in maximizing its fully potential contribution Environmentally responsible and social acceptable industry Quality and safety toward a sustainable industry 8

9 Why Tilapia?

10 Tilapia! Tilapia is the fish for the 21 th century! Omnivorous fish! High density viable! The most labor-saving aqua-farming sector! The cheapest aqua-cultured white meat that compliments the natural environment

11 II. Current Developments of Taiwan Tilapia Industry! Tilapia Production in Taiwan! Taiwan s Flagship Product! About the Taiwan Tilapia Alliance, T 2 A! New Product R&Ds 11

12 The Development of Taiwan Tilapia Industry Tilapia History In 1946, from Singapore In Chen-Hei WU and Chi-chau KUO - Oreochromis mossambicus In 1949, named Wu-Kuo Yu (fish) 12

13 In 1966, from Japan - O. nilotca - O. nilotca O. mossambicus In 1968, Red tilapia - O. mossambicus albino In 1974, from Israel -O. aurea -O. aurea O. nilotica 13

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17 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 MT and US$85 millions.! During 2003, tilapia production accounted for about 23% of the total aquaculture production in Taiwan.

18 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

19

20 About the T 2 A "T 2 A was formed in 2002 "Through generic advertising to create an image of superior quality "Actively participate the exhibits worldwide "To educate farmers via training courses/workshops "Act as a gateway among industry, academia and government "To draft/implement the Code of Practices for Tilapia Farming "International Joint-Venture/Cooperation Programs 20

21 Taiwan s Flagship Products

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26 Fish Nugget or Fish Portion 26

27 Fish Burger

28 Gelatin is a protein derived from tilapia s s skin and can used to make capsules 28

29 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? 29

30 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 wholetilapia and frozen fillets.! Frozen breaded tilapia nuggets and gelatin are another new exporting products.

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32 32

33 U.S. Tilapia Imports in Value, China tilapia becomes Taiwan s s largest competitor since

34 Photo by F. Chiang

35 Photo by F. Chiang

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40 Commodity vs Niche Products! Stable Price or Declining Price for the Tilapia Products in the next 5 years? Year 2003 Whole Frozen (US$/Kg) 1 Frozen Fillet (US$/Kg) 4 Fresh Fillet (US$/Kg) Change -0.1 (-10%)( -1.0 (-25%)( 0

41 IV. Tilapia Production Zone! Application of Good Aquaculture Practice to Tilapia Farming! Current Status and Future Perspectives 41

42 Codes of Taiwan Tilapia Production Zone (Cluster) Certification (GAF)

43 The Contents of the Code of Practices for Tilapia Farming in Taiwan Food Safety Design and Construction of Farms Feed and Feed Use General Pond Operation Health Management Therapeutic Agents and Other Chemicals Effluents and Solid Wastes Community and Employee Relations Conservation of Biodiversity 43

44 Good Aquaculture Farm! On Jan. 30, 2004, the Council of Agriculture (COA), Taiwan set up the regulations for certifying the Good Aquaculture Farm, GAF.! The Fisheries Agency of the COA is responsible for implementing the GAF regulations.! The Aquaculture Development Association and Taiwan Tilapia Alliance are involving in the certifying process. 44

45 Procedure of the Certification! Farmers submit the Application form (including farm s s characteristics, license, certificates, pond layouts, etc.)! First Evaluation: : the COA s s appointed committee conducts the evaluation.! Second Evaluation: : on-site visit and contract signing.! Training Courses & Workshops! Third Evaluation: : 2 times of Environment and Residues Analyses

46

47 Training Courses and Workshops! Introduction to Computer! Water Quality Control and Testing! Drug Management and Analysis! Fry Production and Grow-Out Management! Fish Disease Control! Farm Management! Marketing and Trade

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50

51 Environment and Residues Analyses (Selected Items)! E. Coli (Meat)! Chloramphemium (Meat)! Furazolidone (Meat)! Nitrofuran (Meat)! Copper (Water & Meat)! Cadmium (Water & Meat)! Zinc (Water & Meat) 51

52 Tilapia Production Zone (I) County Yu-lin No. 29 Size (Hectare) Ponds 180 Production (M.T.) 3,836 Value (US M$) 5.5 Chia-yi , Tai-nan , Total ,

53 Tilapia Production Zone (II) County Yu-lin No. of Farms 29 Avg. Age (in Year) 48.0 Avg. Education (in Year) 9.3 Avg. Experience (in Year) 17.8 Chia-yi Tai-nan Total

54 V. Concluding Remarks 54

55 Aquaculture + Bio-Tech! Aquaculture will become the main source of animal proteins! Bio-technology (including genetically modified techniques ) on fries (seeds), water treatment, fish disease control, and feeds! Issue of consumer acceptance toward GM fish and fish products 55

56 Eat More Tilapia! Produce More Tilapia!

57 Taipei 101 Building Thank You! 57

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