Tilapia exports increased 28% in comparison with 2021, totaling USD 4.3 million. Tilapia tops Brazilian fish exports: it accounts for 98% of shipments The United States are the largest buyers of Brazilian fish: they are responsible for 81% of such trade. Exports to that country grew 43% last year. Professionalization in the sector and increased production are partly responsible fo such results. Fish exports are expected to keep growing in 2023, given the reopening of the European market to Brazilian fish products, which had been closed since 2018. Due to the large supply of bodies of water and of grain for fish feed, Brazil has potential to be among the top fish producers. A study by Embrapa Fisheries and Aquaculture in partnership with the Brazilian Association of Aquaculture (Peixe BR) showed Brazil’s fish export revenue increased by 15% in 2022, reaching U$S 23.8 milhões, the highest in the history of the sector. The country that consumes Brazilian fish the most was the United States, which accounted for 81% of Brazilian fish exports. Tilapia (Oreochromis niloticus), the species that is sold the most to other countries, increased by 28% in comparison 2021, to a total of US$23.2 million. The information was published in Boletim Informativo 12 by Embrapa Fisheries and Aquaculture's Aquaculture and Market Intelligence Center (CIAqui). In general, the first semester of 2022 had higher export volumes than the second. Fish farming product exports totalled US$ 14.3 million, a 100% growth in comparison with the same period in 2021. A monthly analysis of the exports shows variations in the course of the year, and the highest volume both in terms of finances and in tons took place in the month of May. Tilapia remains the star among the most exported fish species, accounting for 98% of the country's fish exports. A foreign preference for frozen whole tilapia remained steady, having grown 70% in comparison with the previous year. Fresh fillets came second, with 25% of the total exported and an 8% increase from 2021. The frozen fillets category recorded the highest growth: 98% between 2021 and 2022. The second most exported species in 2022 was tambaqui (Colossoma macropomum), with US$ 268,000 and a decrease of 51% in comparison with 2021. The sorubim fish category took third place, with US$ 114,000 and an increase of 186% in the year, the largest growth among the species ranked. Photo: Envato Professionalization in the sector According to Embrapa researcher Manoel Xavier Pedroza Filho,the growth in production (especially of tilapia) and the search for new sales channels are some of the factors that explain the boost in Brazilian fish exports. “The sector's growth stems from increased professionalization and companies scaling-up production. This has allowed us to enter the international market, which is exceptionally demanding in terms of quality and volume,” he explains. “Meanwhile the domestic market has shown periods of stagnation in fish consumption, leading to a drop in demand and in prices. In this context, exporting becomes an alternative to escoamento production and reduces reliances on a single market”, the expert assesses. For Francisco Medeiros, chair of Peixe BR, 2022 was a challenging year, but domestic prodution kept growing. “The global economy deaccelerated due to the pandemic and also suffered the impact of the war between Russia and Ukraine. Moreover, it was a period of high production costs and of disadjustments in international trade. In spite of those and other adversities, Brazilian fish farming grew 2%. Such growth was not similar to in previous years, but the acitivy nevertheless showed an ascending curve, which proved there is a growing demand for farmed fish”, he states. “We produced 860,000 tons in total, with tilapia once again in the lead. Native fish remain a highly relevant segment, and other species like striped catfish (Pangasianodon hypophthalmus) are on the rise”, he reports. USA are top fish buyers The absolute leading importer of Brazilian fish, the United States were responsible for 81% of those sales, followed by Canada, with a mere 5%, then Taiwan, Libya and Mexico. Exports to the United Stated grew by 43% and reached US$ 19 million. Despite no shipments to Lybia in the last quarter of 2022, the destination saw a 550% increase in exports accumulated in the year. “Most exports to the United States comprise the categories of frozen whole fish, fresh or refrigerated fillets, and frozen fillets. In the latter case [frozen fillets], exports increased by 80%, confirming a growth trend that had been observed throughout 2021 in this category”, Pedroza asserted. For Canada, the main export in the sector were frozen whole fish, which represented 79% of the total (US$ 941,000). As for Taiwan, the top exported category was of byproducts that are not for human consumption(US$ 531,000), which includes items like oils, flours and scales. Among the Brazilian states that most exported fish in 2022, Paraná led with 58% of the total, a 114% increase from the previous year, followed by Mato Grosso do Sul, with 18% of the total, and Bahia, with 11%. São Paulo's growth was noteworthy: 127% in comparison with 2021. Photo above, to the left, by: Manoel Pedroza Foto: Envato Sales should keep growing in 2023 For 2023, expectations are also optimistic for both the domestic and foreign markets. With regard to exports, after a 15% increase in 2022, shipments are expected to keep growing in 2023, especially of whole tilapia and frozen tilapia fillets. Companies in the sector anticipate an increase in exports of the species, especially in the second half. The prospect of reopening the European market for Brazilian fish – closed since 2018 – could contribute to an increase in exports of fish farming products. Since the second half of 2022, tilapia prices have remained high as a consequence of reduced fish populations in previous months. According to data from the Center for Advanced Studies in Applied Economics at the University of São Paulo (Cepea-USP), published in the CIAqui Bulletin, tilapia prices in the domestic market increased by 16% in 2022, ending the year at BRL 8.51 per kilo. The future of Brazllian fish Brazil is one of the countries that has the world's largest potential for growth in fish farming in continental waters. This is due to the fact that it not only has the largest freshwater reserve in the world, but also a large supply of grains for feed production and an already well-structured production chain. Companies that have been operating for decades in other animal protein sectors – such as poultry and pork – are now investing in the tilapia chain as a way of diversifying their investments. In the western region of Paraná, some farmers' cooperatives are already large tilapia producers, operating in the same vertical integration system used to produce broiler chicken. On top of previously consolidated production, there is a prospect of growth in demand, both in the domestic and foreign markets. Fish consumption in Brazil is still low – around 9.5 kg per inhabitant a year–; however, an increase is expected in the long run. With regard to exports, the perspective is for an increase in volumes, especially of frozen tilapia products. There is a tendency of the number of importing countries to grow as new markets open up. For example, several companies that export tilapia already have Halal certification, which gives access different markets in Islamic countries. A long way ahead Despite being the largest historical volume in fish farming exports, the figure is still much lower than other more consolidated production chains, such as beef, which reached US$ 13.091 billion, according to the Brazilian Association of Refrigerators (Abrafrigo), or chicken, which earned US$9.762 billion in 2022, according to data from the Brazilian Animal Protein Association (ABPA). Even though it has enormous potential, the scientific assessment is that Brazilian fish farming is an activity with less than a decade of existence and faces several important bottlenecks, such as high production costs, high bureaucracy in environmental licensing processes, and the need for technologies to produce native species. For Pedroza, the production sector is gradually growing its structures. “Moreover, Embrapa is one of the institutions that have been conducting research to minimize technological bottlenecks, through actions such as the Aquaplus Platform genetic analysis), technologies to improve the quality of feed, breeding and genetic improvement of native species, and digital platforms for intelligence in aquaculture such as CIAqui and SITE Aquicultura”, he reports. Photos: Manoel Pedroza and Jefferson Christofoletti