Tilapia as a global commodity : a potential role for Mexico?

The potential for commercial tilapia aquaculture to be developed taking an economic-focused approach was investigated in Mexico. The research examined various issues related to production, marketing and the business environment of the industry. Findings revealed that farmed tilapia products in Mexico can be produced competitively and profitably in large quantities, not only due to its suitability for culture in most of the country; but also due to the availability of more profitable markets (i.e. supermarkets), increasing demand for high quality tilapia products (e.g. fresh, large sizes and more value-added products) and implementation of more efficient business strategies (e.g. economies of scale and partnerships) and newer technologies (i.e. husbandry and equipment). Public/private sector partnerships proved to be the most feasible way to promote and develop tilapia farming in Mexico, particularly in the case of small and medium enterprises (SMEs). Through either economical, technological or consumables support from development bodies; and integration with other agri-business (e.g. agriculture and livestock) or within the industry (i.e. horizontally and/or vertically). In which economies of scale were promoted, efficiency was improved, dealing power was increased, and costs and risks were reduced. In which larger businesses reported production costs 50% lower (around MX 11 kg-1) than SMEs, allowing them to compete against larger sources (i.e. fisheries and imports). Additionally, a strong and fast moving domestic market influenced by the decline outputs (22% between 1990 and 2003) from the main source (i.e. catching sector) and the availability of more value-added products (e.g. fillets in various presentations) have promoted its expansion into more profitable markets (i.e. supermarkets and exports) and in sustained and/or increased prices within the past decade (compared to other seafood commodities, e.g. shrimp and salmon). However, concerns arise about the long–term sustainability of tilapia farming due to the high production costs (overall median value MX$ 19 kg-1), small and inconsistent outputs (85% of the farms interviewed produced less than 100 t year-1), lack of knowledge of proper farming techniques and marketing strategies, unlawful competition from imported products (labelling and taxes), poor law enforcement and monitoring from regulatory institutions, and poor institutional support and inadequate extension services, all of which have affected the sustainable development of tilapia farmers and associated groups. Further research is required for the development and promotion of more efficient and economically viable strategies for tilapia farming businesses to target key internal markets. Similarly, improved and more rigorous monitoring of development and support programs performance is required.