TILAPIA 2015 KUALA LUMPUR VIETNAM TILAPIA 2015 : ACCELERATING START Dr. Nguyen Huu Dzung Vice President Vietnam Association of Seafood Exporters and Producers (VASEP) Kuala Lumpur April 2-4, 2015
Vietnam Fisheries 2014: An overview Land area: 329,560 sq km Coast line: 3,260 km EEZ area: 1 million sq. km Total production : 6.30 million MT (+ 4.4% to 2013) Catching: 2.71 million MT (+ Aquaculture: 3.61 million MT (+ 4.8% to 2013) Export turnover : US$ 7.836 billions (+ 16.5% to 2013). Labour force: more than 4.5 millions Fisheries continued to be a key national economic sector: Take 4-5% GDP; Take 5-6% of total national export turn-over. Rank 4 th Global for seafood export (follow: China, Norway, Thailand) Rank 5 th national for export value (follow: electronics, garment, crude oil, shoes)
Fisheries & Aquaculture Production 1,000 MT 7000 6000 5000 4000 3000 2000 Aquaculture 1.669 1.8282.003 1.570 1.344 1.338 2.435 Wild catch 3.074 2.859 2.648 6.050 6.300 5.745 5.200 4.850 5.126 4.160 4.580 3.696 3.432 1000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Aquaculture Area & Production
Seafood Processing Industry 2014 567 seafood industrial processing plants 455 plants qualified for exporting to the EU (compared to 1999: 17 only) More than 550 plants are meeting national standards of hygiene and safety, including GMP, SSOP, HACCP and ISO Processed seafood volume was over 1,500,000 tons Lacking of running capital, weak access possibility to the bank Shortage of raw materials: bigger from year to year Imported raw seafood for re-processing increased Product diversification enlarged, value-added products accepted by many supermarket chains in the US, EU & Japan 5
Vietnam Seafood Exports 1993-2014 US$ millions 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 21.0 24. Export value Growth rate 21. 22. 16. 5. 368.0 456.0 550.0 670.0 780.0 817.0 52. 19. 1478.0 971.0 20. 1777.0 2023.0 2401.0 2240.0 12.5 10.7 7.2 2739.0 14.1 22.2 3762.0 3348.0 12.4 4500.0 4250.0 19.6 6118.0 5033.0 18.4-5.7 6134.0 21.5.3 % 7836.0 6725.0 60 50 40 30 20 16.5 9.6 10 0-10
Export Markets Structure 2014 (By Value)
Export Products Structure 2014 (By Value)
Export Products Structure 2014 (By Value) Products (HS 03 and 16) 2014 Compared with 2013 US$ 10 6 % Shrimp 3.952.910 +26.9 Pangasius 1.768.157 +0.4 Tuna 484.235-8.1 Cephalopods 483.296 +8.0 Tilapia 35.784 + 265.3 Other seafood 1.116.560 +31.1 Total 7.836.037 +16.5
Vietnam s Pangasius Story Vietnam s 2 nd important farmed species, after shrimp Export value in 2014 was US$ 1.768 bill. Fastest development: from 2003 to 2008: 1.5 mill. tons Very high productivity: 500 ton/ha/crop Most vertically integrated farmed fish in Vietnam, 70% fish volume farmed by processors, modernization of farming and processing technology Many producers certified by BAP, Global GAP; first 27 farms ASC certified, with more 20% total production Against by US catfish : Antidumping case from 2002 Good fish but link with bad opinions in some markets 10
Pangasius Export Value, 2003-2014 2000.0 1800.0 1600.0 1400.0 1200.0 1000.0 800.0 600.0 400.0 200.0.0 82 17 EU Total 83 229 139 328 343 737 470 979 1453 581 1343 1427 539 511 526 1806 1744 1761 1768 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 426 385 344 11
Pangasius Raw and Value-added 2014 Value-added Ratio : 0.92%!!! Frozen fillet and other raw products Value Markets (mill. USD) Nr Share (%) Nr Markets 12 Value-added products Value (mill. USD) Share (%) 1 USA 336.483 19.21 1 Netherlands 5.874 35.96 2 Brazil 122.970 7.02 2 Thailand 2.296 14.05 3 Mexico 115.088 6.57 3 China & HK 0.935 5.73 4 China & HK 112.217 6.41 4 The U.K 0.895 5.48 5 Spain 72.007 4.11 5 Germany 0.849 5.20 6 Columbia 70.118 4.00 6 Australia 0.748 4.58 7 Saudi Arabia 58.649 3.35 7 Singapore 0.615 3.77 8 The Netherlands 52.864 3.02 8 Switzerland 0.551 3.37 9 Egypt 45.734 2.61 9 Spain 0.476 2.91 10 Australia 42.456 2.42 10 UAE 0.440 2.69 Subtotal 1,028.585 58.72 Subtotal 13.678 83.74 Other markets 723.237 41.28 Other markets 2.657 16.26 Total 1,751.822 100.00 Total 16.335 100.00
Vietnam Tilapia Story Introduced to Vietnam from late 1950 The Vietnam s 2 nd white farmed fish, after Pangasius 50 years history mainly in small scale, slow development Use more for domestic consumption, less for export Export value in 2014: US$ 35.7 mill. (2% of Pangasius only, but increased 265% compared to 2013!) First Tilapia farms have been ASC certified by 2013 New waves of radical renovation started from 2014 One farmed fish of huge future for Vietnam 13
Present Vietnam Tilapia Farming Two main species: Red (Oreochromis sp.) mainly for domestic Black (Oreochromis niloticus) mainly for export Two main farming models: Monoculture Poly-culture with shrimp to reduce EMS Two main kinds of farming facilities: Cages in rivers, reservoirs and lakes Earth ponds Pond: 15,992 ha (3% national freshwater farming area) Cage s volume in rivers and lakes : 410.732 m 3 14
Vietnam Farmed Tilapia Mainly farmed in cages in open water bodies Concentrated on Mekong Delta, Central and Northern 2014: Production 125,000 tons (+25% to 2013) 2015: National Program for Tilapia Development Directorate of Fisheries has planed to 2020: Farming areas: 25,000 ha Production: 200,000 tons Exported: 80,000 tons of final products. Source: D-Fish report by Nov. 2014 15
Brook-stock and Fingerlings Production In 2014, total 236 tilapia seed production facilities Brood-stock: 44 facilities, annually 940,000 brook-stocks Resources of brook-stock: Mainly imported Fingerlings production: 455 millions (Northern provinces have produced 173 millions) Mono-sex fingerlings quality is poor Not yet seed vaccination, quality and disease control 16
Tilapia Export Development, 2004-2014 Years Volume Export value Change (ton) (USD) (%) 2004 974 1,946,196-2005 827 1,691,555-13.1 2006 812 1,699,994 0.5 2007 412 1,092,550-35.7 2008 480 1,258,179 15.2 2009 536 1,511,940 20.2 2010 848 2,563,928 69.6 2011-2,289,512-10.7 2012-4,043,158 76.6 2013-9,794,643 142.3 2014-35,784,642 265.3 17
Vietnam Tilapia Export 2004-2014 USD million % 40 265.3 300 35 250 30 200 25 20 15 10 5 0-13.1 0.5-35.7 15.2 20.2 69.6-10.7 76.6 142.3 150 100 50 0-50 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Value Change (%) -100 18
Vietnam Tilapia Export Export of tilapia from Vietnam is increased in last 10 years, but very slowly. In 2005 export value of tilapia was only 1.691 million USD In 2014, Vietnam exported tilapia to 60 markets, valued at 35.784 million USD, increased 265% to 2013. Top 5 markets took US$ 21.756 million (60.8 %). Top 3 are: USA 8.911 million USD (24,9%), Spain - 4.450 million USD (12.4%) Colombia 3.718 million USD (10.4%) Vietnam tilapia export still very small, equal 1% of China. 19
Tilapia Export Market Structure 2005 Country Value (USD) Percentage USA 666,752 39.4% Belgium 515,418 30.5% The Netherlands 197,880 11.7% Germany 119,723 7.1% Italy 114,107 6.7% France 42,346 2.5% Others 35,330 2.1% Grand Total 1,691,555 100.0% 20
Tilapia Export Market Structure 2005 Belgium 30.5% Netherlands 11.7% Germany 7.1% Italy 6.7% USA 39.4% France 2.5% Others 2.1% 21
Number of Tilapia Export Markets Số TT NK cá rôphi qua các năm từ 2004-2014 70 70 66 66 60 60 50 50 52 52 40 40 36 36 30 30 20 20 10 10 11 11 8 8 15 15 12 13 12 13 17 17 22 23 22 23 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Series2 22
Tilapia Export Market Structure 2014 Country Value (USD) Percentage USA 8,911,672 24.9% Spain 4,450,093 12.4% Colombia 3,718,744 10.4% Netherlands 2,974,238 8.3% Belgium 1,717,745 4.8% Germany 1,614,374 4.5% Others 12,397,777 34.6% Grand Total 35,784,642 100.0% 23
Tilapia Export Market Structure 2014 Others 34.6% USA 24.9% Spain 12.4% Germany 4.5% Belgium 4.8% Netherlands 8.3% Colombia 10.4% 24
Vietnam Tilapia Advantages Strong & dynamic farming and processing capacities Rich experiences in pangasius industry, easier shifted to tilapia Large and still clean water environment International feed industry in country Young and skillful labor forces Existing large partners in different markets Improved aquaculture management policy. 25
Vietnam Tilapia Challenges Un-controlled environment of open water bodies Shifting farm cage to the modern earth pond model Controlling production in an ecological region Quality of brook-stock and mono-sex fingerlings Lacking vaccines to prevent diseases Increased feed price and main input raw materials Lacking a well designed and managed program Lacking guaranteed better price between certified and non-certified products Social responsibility to surrounding communities 26
Vietnam Tilapia Champions NAVICO: Big Pangasius producer and now Nr 1 Tilapia farmer of Vietnam - An Giang province VINH HOAN: Nr 1 Vietnam s Pangasius producer - Dong Thap and Tien Giang provinces MINH PHU: Nr 1 Vietnam Shrimp producer - Ca Mau and Hau Giang province HOANG LONG: The First Tilapia Farm Certified by ASC Dong Thap Province Will be much more this and in the coming years 27
NAVICO Tilapia Huge cage systems in Mekong River (20 km long!) Establishment of High Quality Tilapia Fingerlings Production Center with capacity to 1 billion fingerling a year Rich experiences on farming, processing and export Modern large processing plants for pangasius ready to be shifted to tilapia International technical experiences (Dr. David Little) High quality brood-stock Cooperation program with GenoMar (Norway) 28
NAVICO Tilapia Challenges Poor water quality management in cage culture in rivers: Selection the right sites for cages Control discharge resources to the rivers Diseases control and fish health management in river cage culture Brook-stock and fingerling production and quality Vaccine for tilapia Development of Mekong Tilapia brand Set up a quota system for tilapia production. 29
Thank You and Let s Working Together! Vietnam Association of Seafood Exporters & Producers (VASEP) Headquarter: # 218 Lot A. 6 th Str. An Phu - An Khanh. Dist. 2. Ho Chi Minh City Gov. Relations Office: 10 Nguyen Cong Hoan str.. Ba Dinh dist.. Ha Noi. Vietnam Tel: +84 437 715 055 Fax: +84 437 715 084 Email: dungnh@vasep.com.vn Website: www.vasep.com.vn; www.pangasius-vietnam.com; www.vietfish.org 30