Very interesting and informative article. Many thanks for sharing. I have some comments on two excerpts of the article in the following for discussion. Many thanks. Best, Junning “While tilapia production in China is believed to be stable at around 1.8m MT, its exports fell dramatically from a live weight equivalent (LWE) of 650,000 MT in 2013 to 178,000 MT in 2020. The LWE of fillet exports dropped the most: from 500,000 MT to 78,000 MT, while the exports of whole fish only dropped from 150,000 MT to 100,000 MT (Figure 2).” • According to UN Comtrade statistics, the United States imported 104 810 tonnes (product weight; close to 300 000 tonnes LWE) of frozen tilapia fillets (HS030461) from China in 2020, which was higher than the 92 810 tonnes in 2019 in spite of the trade war and the COVID pandemics. • However, the UN Comtrade statistics indicate only 31 697 tonnes and 4 834 tonnes of China’s export of HS030461 to the United States in 2019 and 2020, respectively. • The discrepancies between the import and export data are because a large amount of China’s export of tilapia fillets has been recorded under HS160419 (a commodity group including not only tilapia but also other fish products) in China’s export data whereas in HS030461 in the US import data. • According to FAO statistics, China’s 444 851 tonnes of tilapia export in 2018 comprised 196 943 tonnes of HS160419 (Tilapias prepared or preserved, not minced), 135 189 tonnes of HS030323 (frozen whole tilapia) and 112 719 tonnes of HS030461 (frozen tilapia fillets). • In summary, the observation in the highlighted text could reflect a data issue. “Chinese exporters sell whole tilapia in various sizes, ranging from 100/200 g to over 800 g. The most common size tilapia imported into sub-Saharan Africa is 100/200 and 200/300 g, but regional differences exist: Eastern, Middle, and Southern Africa tend to import small and medium-sized tilapia, while Western Africa tends to import medium-sized tilapia as well as some larger sizes.” • I don’t have the most updated data on tilapia trade price. But according to the UN Comtrade statistics, in 2018, the average import price of frozen whole tilapia was around USD 1.49/kg for sub-Saharan Africa, USD 1.92 for Eastern Africa, USD 1.60/kg for Middle Africa, USD 1.32/kg for Western Africa, and USD 0.95/kg for Southern Africa. These prices are inconsistent with the observations described in the highlighted text above – see Figure 3 in the article for the prices of tilapia by size. • Tilapia import prices calculated from official trade statistics may not be accurate, or the latest size patterns may differ from those in 2018. In any case, it would be useful to know the base of the highlighted statement (e.g. export opinions, trade statistics, anecdotal observations, etc.). • More detailed, quantitative information on tilapia consumption in Africa (live/fresh/frozen, size, original, price, etc.) will be highly useful. From: Sarnissa-african-aquaculture &lt;sarnissa-african-aquaculture-bounces(a)lists.stir.ac.uk&gt; On Behalf Of William Leschen via Sarnissa-african-aquaculture Sent: 21 July 2021 10:52 To: sarnissa-african-aquaculture Mailing List &lt;sarnissa-african-aquaculture(a)lists.stir.ac.uk&gt;uk>; sarnissa-french-aquaculture(a)lists.stir.ac.uk Subject: [BULK]Do Chinese Exporters Still Outcompete Sub-Saharan Africa’s Tilapia? Van: Willem <willem@aqua-spark.nl<mailto:willem@aqua-spark.nl>> Verzonden: woensdag 21 juli 2021 08:29 Aan: Willem van der Pijl <willem@aqua-spark.nl<mailto:willem@aqua-spark.nl>> Onderwerp: Do Chinese Exporters Still Outcompete Sub-Saharan Africa’s Tilapia? [https://mcusercontent.com/d5eb256f9a9def92894b295b9/images/28adb6fb-99e8-c5… DO CHINESE EXPORTER STILL OUTCOMPETE SUB-SAHARAN AFRICA'S TILAPIA? One of the concerns many in sub-Saharan Africa express is the competition local producers face from cheap tilapia imported from China. However, for a couple of years now, China’s tilapia exports are declining and, at present, only 10% of its total production of tilapia is exported. While China has been a significant source of competition in the past, this is no longer entirely true, and we can maybe even breathe a sigh of relief: competition from China has forced commercial tilapia producers in sub-Saharan Africa to become more efficient and to build a brand for their products. Their focus may therefore now shift to competition from other proteins, such as chicken, instead. [https://mcusercontent.com/d5eb256f9a9def92894b295b9/images/0c4ec478-da54-c0…] Figure 1: China's tilapia exports to sub-Saharan Africa Source: General Administration of Customs People’s Republic of China "China’s Tilapia Volume Used for Exports Declined from 650,000 MT in 2013 to below 178,000 MT in 2020" While tilapia production in China is believed to be stable at around 1.8m MT, its exports fell dramatically from a live weight equivalent (LWE) of 650,000 MT in 2013 to 178,000 MT in 2020. The LWE of fillet exports dropped the most: from 500,000 MT to 78,000 MT, while the exports of whole fish only dropped from 150,000 MT to 100,000 MT (Figure 2). The decline in exports is a clear indication of China’s booming domestic market—and just like for other seafood, such as shrimp, China’s role as a tilapia exporter might soon be over. This may be the case sooner for larger fish used for fillets than for the smaller whole round tilapia, for which sub-Saharan Africa is still the largest market. "Sub-Saharan Africa Has Become China’s Largest Tilapia Market" According to Chinese customs, after climbing from 75,000 MT in 2013 to 93,000 MT in 2018, sub-Saharan Africa’s imports of Chinese tilapia dropped to 61,000 MT in 2020. Sub-Saharan Africa accounts for 60% of China’s total official whole tilapia exports. Figure one provides an overview of Chinese tilapia to various regions in sub-Saharan Africa. Western Africa is clearly the largest importer of Chinese tilapia and its import volume continues to rise. In 2020, the region imported 42,000 MT according to Chinese export data. The markets in the region are interconnected. While Côte d’Ivoire is clearly the largest importer of Chinese tilapia, part of that import is destined for landlocked markets—such as Burkina Faso, Mali, and Niger—and some product might be informally supplied to Ghana and Nigeria, which have officially banned tilapia imports. Imports into Eastern Africa declined from 16,000 MT in 2015 to 10,000 MT in 2020. Rwanda (40%), Kenya (30%), and Zambia (20%) are the largest importers. While Rwanda increased its imports in 2020 (to 4,000 MT), Kenya’s imports remained flat (at 3,000 MT), and Zambia’s declined (from 12,000 MT in 2013 to only 2,200 MT in 2020). Exports to Middle Africa fluctuated between 15,000 MT and 22,000 MT from 2015 to 2018, dropped to 10,000 MT in 2019, and further to 5,000 MT in 2020. The big plunge would have been caused by reduced imports into Angola and Cameroon. The Democratic Republic of the Congo and Gabon are currently the region’s largest importers. China’s export data also shows a decline in Southern Africa’s imports. Import data from local customs, however, shows a steady increase from 6,300 MT in 2015 to more than 12,000 MT in 2019. [https://mcusercontent.com/d5eb256f9a9def92894b295b9/images/88612e66-835f-78… Figure 2: Decline in tilapia exports in LWE estimation of actual export volume Source: https://www.trademap.org Note: Export volumes converted to a LWE with a ratio of 0.37 for fillets and an average ratio of 0.9 for whole round, and gutted and scaled tilapia. "Insiders Believe Import Data of China, and Sub-Saharan Africa to be Underreported" Many insiders in the aquaculture industry in sub-Saharan Africa believe that the actual volume of tilapia imported from China might be larger than the volume declared to customs: it is thought that importers and exporters may agree to declare the product as, say, mackerel or as “other fish” to circumvent import duties on tilapia or bans that prohibit the import of Chinese tilapia. Suspicion is fueled by reports which describe higher import numbers than statistics show. An example includes a recent study of the impact that imported Chinese tilapia has on the dynamics of the fish market in Kisumu, Kenya. The 20,000 MT mentioned in the study is much higher than Kenya’s formal import numbers, which, for 2019, were reported at 2,500 MT of tilapia and an additional 8,000 MT of “freshwater and saltwater fish,” possibly also consisting of tilapia, imported from China. This total of 10,500 MT only accounts for half of the volume reported in the study. Either the study overestimated the volume or a considerable amount of product is smuggled into the country. This is just one example. There are suspicions that tilapia is also smuggled into other countries, such as Ghana, Nigeria, and Zambia. One industry source even claims that, especially when looking at medium-sized tilapia, legitimate imports are increasingly outcompeted by local producers. He therefore believes that legitimate imports consist mainly of small sizes, and that larger sizes might be smuggled into the country to escape import duties. [https://mcusercontent.com/d5eb256f9a9def92894b295b9/images/615af65f-966c-b4… Figure 3: CIF prices delivered to ports in sub-saharan africa quoted by chinese exporters in march 2021 "Chinese Exporters Offer Tilapia Delivered to Ports in Sub-Saharan Africa at $0.85-$1.50, Depending on Size" Chinese exporters sell whole tilapia in various sizes, ranging from 100/200 g to over 800 g. The most common size tilapia imported into sub-Saharan Africa is 100/200 and 200/300 g, but regional differences exist: Eastern, Middle, and Southern Africa tend to import small and medium-sized tilapia, while Western Africa tends to import medium-sized tilapia as well as some larger sizes. In early 2021, Chinese sellers offered tilapia at prices (CIF) ranging from $0.85/kg for 100/200 g to $1.53/kg for over 800 g. These prices may drop during the year when the peak harvest season in China starts in June, and when the—currently extremely high—container prices tumble. profile of the company and country we invest in. When looking at these prices, it’s crucial to understand that the quoted prices refer to the size of the fish after 20% glazing. This means that a product of 200-300 g actually consists of about 150-250 g tilapia that is procured at a lower price. A source in China states that his clients in sub-Saharan Africa are normally not willing to order a net weight product because of the higher price they would have to pay. This could indicate that Chinese exporters are not competitive in the market with a net-weight product. Chinese exporters can sell at these prices because they receive a subsidy of 10% for exporting tilapia to sub-Saharan Africa. In some cases, the smaller tilapia is believed to primarily be a by-product of farms that mainly target larger sizes. As there is no domestic market for this product, Chinese farmers are willing to sell it to processors at around—or even below—the actual production cost. "Local Producers Have Started Outcompeting Chinese Medium-Sized and Large Tilapia" Even though the actual volume of Chinese tilapia sold on the market in sub-Saharan Africa might still be around 100,000 MT, this should not be seen as a major threat to the competitiveness of local tilapia production. While the low prices for the smaller Chinese tilapia are hard to compete with, commercial local producers have started competing with Chinese prices for medium-sized and large tilapia. While the small Chinese tilapia is mainly sold to the lowest-income urban consumers of sub-Saharan Africa, medium-sized tilapia, more expensive than the poorest can afford, is sold mostly to the urban middle class. With Chinese tilapia being less of a threat, competition might come from other animal proteins instead. 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