China’s tilapia prices rise, US demand depressed!

Recently, the price of tilapia raw materials in China has continued to rise, making it difficult for U.S. importers to make big-ticket purchasing decisions at the North American Seafood Expo (SENA).

The raw material price of tilapia in Hainan, China, has reached 11.2-11.6 CNY ($1.55-1.60)/kg, up 30 percent from 8.6 CNY/kg in the same period last year, according to market data.

In Guangdong province, the price is also higher, reaching 11.4 CNY/kg, and even higher in some areas.A domestic processor said, Raw materials are extremely scarce, and the situation this year is quite different from previous years.Even at 11.6 CNY/kg, it may still be difficult to buy fish."

Fish stocks in the first quarter of 2024 increased by 50% compared to the same period last year, and the tight supply of raw materials is expected to ease in May and June, but may not be enough to offset growing market demand.

This upward price trend has had a significant impact on the US market, which relies on Chinese tilapia supplies. At the Boston Seafood Show, many American buyers said they were hesitant because of high raw material prices and fears that prices might drop when orders arrive.

The head of a large Chinese tilapia processor said: "Although there is demand in the US market, due to the high price of raw materials at present, the factory price of Chinese tilapia is even higher than the price of internal circulation in the US market, which makes US buyers face greater pressure when purchasing." In addition, Chinese tilapia faces intense competition from alternatives such as Vietnamese basa fish and Alaskan pollock. Due to the relatively low prices of these products, US buyers may be more inclined to choose these alternatives when purchasing."

Industry experts pointed out that China's tilapia industry should maintain a reasonable production level, avoid price wars, and jointly cope with the current export situation.