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In ternationa l
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African Journal of Agricultural Marketing ISSN: 2375-1061 Vol. 12 (2), pp. 001-007, February, 2024. Available 
online at www.internationalscholarsjournals.org © International Scholars Journals 

 

Author(s) retain the copyright of this article. 
 
 
 

 

REVIEW 

 

Aquaculture practices and market strategies of 
farmed tilapia in China 

 
Matlala Moloko P.1,2, Kpundeh Mathew D.1,2 and Yuan Yongming1,2* 

 
1
Wuxi Fishery College, Nanjing Agricultural University, Wuxi, 214081 China. 

2
key Laboratory of 

Freshwater Fisheries and Germplasm Resources Utilization, Ministry of Agriculture, Freshwater Fisheries 
Resource Center of Chinese Academy of Fishery Sciences, Wuxi 214081, Jiangsu China. 

 
Accepted 21 December, 2023 

 
Tilapia has become one of the major species of aquatic products in close link with both domestic and 
international markets. Nowadays, the demand for fish and fisheries product has being exacerbated by 
the continued increase in human population the world over. This was due to the fact that global 
captured fishery was declining following the increased human exploitation for the commercially 
important fishes. Aquaculture or fish farming has become one of the solutions to maintaining the 
continuous supply of fish to commercial markets. China was by far the largest producer and exporter of 
tilapia products irrespective of some constraints such as soaring production costs, price and weather 
fluctuations. In the country, tilapia production was mostly carried out in the southern and southeastern 
coastal areas where subtropical conditions favored the growth and reproduction of the species. This 
paper reports on production and marketing systems of tilapia in China. Tilapia products produced in 
China had to pass through different channels before reaching their final consumers. Major international 
markets for tilapia products produced in China included among others, the United State, European 
Union and Russia. This work will guide potential investors and competitors for tilapia market in China 
and the world at large. 

 
Key words: Tilapia production, marketing system/channels, export, China. 

 
INTRODUCTION 

 
Tilapia is an important food commodity, commercially 
produced in many South-east Asian countries, with Nile 
tilapia being the most important species (El-Sayed, 
2006). Tilapia farming industry in China is evolving 
rapidly. China is by far the leading tilapia producing 
country and is currently producing one half of the global 
supply (Fitzsimmons et al., 2007). According to Lai and 
Yang (2008), this prosperous tilapia production in China 
is being practiced in the Southern part of China, using 
almost all types of culture systems with different 
Intensifications. The increased tilapia production in China 
can be attributed to the wider acceptance of the species  
 
 
 
∗Corresponding author. E-mail: yuan@ffrc.cn. Tel: +86-510-  
85569021. Fax: +86-510-85550245. 

 
 
 

 
at the international market (Zhao, 2011), owing to the fact 
that, the local market is less rewarding and yet 
developing (Yang, 2010). China Customs bureau report 
for the first quarter of 2012 revealed that, in 2011, the 
country exported a rounded sum of 330,300 tonnes of 
fresh and frozen tilapia to the US; and exceeded 2008 
export by 32%.  

Just like any aquaculture venture, the success of tilapia 
culture depends on the marketability of the products and 
the wise and efficient use of the available resources 
(Bardach et al., 1972). According to Ruddle and 
Grandstaff (1978), tilapia industry can be categorized into 
three subsystems of aquaculture: procurement, 
transformation, and marketing; wherein, the formal 
includes procuring of production inputs such as seed, 
feed and labour. Transformation subsystem on the other 
hand includes the production process wherein seed stock 



2 

 

   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Figure 1.Trend of global Tilapia production from 2000 to 2010 (FAO GLOBEFISH). 
 

 

is reared to marketable sizes. Marketing, as a subsystem 
encompasses both domestic and foreign exchange, and 
includes the various marketing intermediaries and 
consumers.  

Commercial production has become popular in many 
countries around the world and the traditional markets 
which were in Asia and Africa have expanded in many 
countries within Europe and the US (Maribel, 2002).In 
China, the marketing system of fish such as tilapia in 
cooperate many activities stemming from harvesting, 
processing, selling and consuming; which can be referred 
to as marketing channel, distribution channel or supply 
chain. Marketing system of tilapia is largely controlled by 
the following factors in the production systems VIZ: (1) 
production cost, (2) operating costs, (3) competition 
among producers; (4) degree of processing, (5) 
production scale and consumers’ demand (Pillay, 1994). 
While the Marketing channels for tilapia product are 
governed mainly by the nature of the products, the end 
consumers and the characteristics of the farms; though 
the product sold from aquaculture farms are generally for 
human consumption (Beveridge and McAndrew, 2000).  

Global trade in tilapia has witnessed an impressive 
flourishing in the last two decades, this according to 
Vunniccini (2001), is expected continue. In some 
countries famers can market their products directly to 
consumers whereas, in most cases, farmers may need to 
use middlemen during production chain. In China, 
marketable sized tilapia reach the market outlets through 
middlemen who act as go-in- between in the production 
system. This paper reports on production, marketing 
channels and mode of distribution of tilapia to the 
respective buyer or market outlets. Furthermore, this 
paper enlisted constrains encountered by farmers in the 
production and marketing of tilapia. 

 
 

 

GLOBAL TILAPIA PRODUCTION 

 

Some eighty-five countries across the world are culturing 
tilapia (Gupta and Acosta, 2004). Historically, tilapia was 
produced and consumed mainly in Africa and Asia, but 
nowadays has gained increased acceptance among 
consumers in developed and developing countries 
thereby forming a network of markets (Ferdouse, 2001; 
Vunniccini, 2001). Apart from catching consumers’ 
attention around the world, tilapia also plays a significant 
role in global aquatic production through culture-based 
fisheries; more so as global captured fishery is declining. 
Tilapia production continues to bloom and is showing a 
steady increase yearly. In 2000 to 2010, tilapia production 
increased from 1.27 million metric tons (mt) to 3.4 million 
mt (Figure 1). China, among other countries is the largest 
contributor to the 2010 global tilapia production (Figure 
2). 
 

 

TILAPIA PRODUCTION STATUS IN CHINA 

 

Tilapia production in China continues to increase, 
reaching 1,330,000 mt in 2010, compared with the 
600,000 mt in 2000 (Figure 3). This production follows a 
smooth trend from 2000 to 2010, although it dwindles 
from 2006 to 2008. Quality seeds, water availability, labor 
and farming experience, according to Zhao (2011) are 
key factors that have contributed to the rapid growth in 
tilapia production. The quality of seed stocked during the 
production cycle normally determines the survival rate of 
the fish (Xiao et al., 2012), which in turn will determine 
the yield, and informs the total revenue at the end of the 
production.  

The fall in production (1,110,000 mt) in 2008 reflected a 



3 

 

  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Figure 2. Major Contributors to 2010 global tilapia production 
(FAO GLOBEFISH).  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Figure 3.Tilapia production trend in China from 2000 to 
2010 (Statistic unit, MOA).  

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Figure 4. Percentage tilapia production of the major producing 
provinces in 2010 (statistic unit, MOA). 

 
 

 

representing 40.62%, which was higher than the 39.16% 
39.29% decrease. This fall according to Helga (2010), 
was due to price hikes within the production chain. Liu et 
al. (2012) further explained the rationale behind the 
decline, which according to their studies, was due to very 
low temperatures at the beginning of 2008; which 
informed the 25% decrease in production with reference 
to 2007. After the prices for major input reduced in 2009, 
the production recovered, acounting for 1,258,000 mt, 

 
 
 
 

 

obtained in 2010. Furthermore, a sharp increase in 
production was also observed in 2010 reflecting a 
49.51% compared to previous years.  

Currently major tilapia producing provinces in China are 
Guangdong, Hainan, Guangxi and Fujian. In 2000, tilapia 
production in Guangdong was 249,446 (39.6%), Fujian 
105,589 (16.8%), Guangxi 102,886 (16.4%), and Hainan 
64,786 (10.3%) mt (Lai and Yang, 2008). Out of the 
1,331,890 tonnes of tilapia total production in 2010, 
Guangdong continues to be the leading province (Figure 
4), contributing 624,178 (46.86%), followed by Hainan 
with 250,645 (18.2%), Guangxi with 214,404 (16%) and 
Fujian with 109,450 (8%) mt. 
 

 

DISTRIBUTION CHANNELS OF FARMED TILAPIA 
PRODUCTS 
 

Transformation of the seed into marketable size product 
is only one half of the battle, since the farmer will only 
obtain the output in the form of profit after the produced 
products are being sold to the market. This makes it very 
crucial for farmers to create mutual profitable 
partnerships with the market outlet as they would not 
compromise their profiteering adventure, in a bid to 
ensuring a sustainable tilapia industry. Before this time, 
when aquatic farming was in its rudimentary stage, it was 
meant to make available fresh products for the farmers 
and their families or their local communities. Lately, the 
production has expanded and the market has extended. 
Depending on the market demands and requirements, 
tilapia products in China can be distributed domestically 
or internationally to the market outlets. Generally, one or 
more intermediaries may be involved in the marketing of 
the products and naturally; a mark of price is tagged at 
each stage (Stigler, 1969).  

In China, there are a variety of market outlets ranging 
from local/domestic market, to processing manufacturers 
up to the international market. Most marketing for farmers 
is done by the middlemen, since cooperative marketing is 
not too pronounced. Nevertheless some famers can still 
sell their product directly to the local market or to 
processing companies. The marketing channel for Tilapia 
products in China can be divided in two (Figure 5). First 
marketing channel start from the producer to domestic 
market, then to the consumer. The Second one is a bit 
long, starting from producers to processing companies, 
international market, then to the consumers. No matter 
the route used in the distributed channel, the end users 
will be the consumers. Most of the time, farmers may sell 
the entire production of live-fish to the middlemen, and 
then the fishes will be distributed according to the market 
outlet demands. During harvesting, farmers hire the 
harvesting team and buyers provide transportation for 
their fishes. Competition for international market has 
caused some processing companies to culture their own 
fish, so as to evade risk from buying poor quality ones 
from other farmers; in a bid to conforming to quality 



4 

 

   
 
 
 

Processing International 
 

Company 
Market

 

 
 
 

 

Producers Middleman  
Export 
Agents 

 
 
 
 

 
Local Market         Consumer 

 
 

 

Figure 5. Schematic representation of distribution channels of tilapia product. 
 

 
Table 1. Tilapia production, proportion exported and quantity retained for domestic market (China 
Custom Bureau).  

 
 Year Total production (mt) Exported quantity (mt) Domestic quantity (mt) 

 2002 707.000 26.000 681.000 

 2003 806.000 52.000 754.000 

 2004 897.000 67.000 830.000 

 2005 978.000 80.000 898.000 

 2006 1111.000 274.000 837.000 

 2007 1134.000 521.000 613.000 

 2008 1110.000 548.000 562.000 

 2009 1258.000 672 .000 586.000 

 2010 1332.000 799.000 533.000 
 
 
 

assurance required for exportation. 
 

 

TILAPIA EXPORT FROM CHINA 

 

The development of international export trade markets 
has had a significant effect on production and marketing 
of aquaculture produce in recent years. In the past, 
aquatic products were seldom sold beyond the local 
markets. Today in China, fish commodity such as tilapia 
can be sold both domestically and internationally. The 
export potential has attracted governmental and private 
sector’s interest and support; as most countries give high 
priority to increased foreign exchange earnings for a 
favorable balance of international trade.  

In China, international trade of tilapia is being promoted 
by allowing taxed free exportation; this has prompted the 
processing companies to focus more on exportation than 

 
 
 

domestic marketing. Before this period (2002 to 2007), 
the proportions of the total tilapia production being 
retained for domestic market were far more than half of 
the total production (Table 1). However, the table has turn 
due to the expansion of the international market and 
exportation promotion of a no tax charged for exporting, 
granted by the Chinese government. With this promotion, 
export volume is expected to increase steadily everything 
being equal. The United Nations Food and Agriculture 
Organization (FAO) fishery statistics data (2010), 
acclaimed China as leading producer for tilapia and its 
main importer being the United States. In 2010 for 
example, total export quantity reached 797, 000 mt, 
accounting for 60% of the total production, with a 
corresponding total domestic quantity of 533,000 mt. 
Consumers’ preference and alternative goods are yet 
another factor to reckon with when dealing with supply of 
aquatic products. USA received the large chunk of 



5 

 

 
 
 

 
Table 2. China’s Export and trade value obtained per importing country for 2010 and 2011 (China Custom Bureau).  

 
 

Importing country 
Export quantity from China (metric tons) Trade value (100 million US dollar) 

 

 

2011 2010 2011 2010 
 

  
 

 United State 150.600 168.800 5.99 6.09 
 

 Mexico 46.800 43.200 1.57 1.24 
 

 Russia 15.300 20.300 0.66 0.68 
 

 European Union 29.600 27.9 0.9 0.8 
 

 Total 330.300 322.800 110.900 100.600 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Figure 6. China’s 2011 Export to the main importing countries 
(FAO GLOBEFISH).  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Figure 7. Export products from China to the importing countries 
for the year 2011(FAO GLOBEFISH). 

 
 

 

exported tilapia from china (Figure 6), and is in conformity 
with what Carel et al. (2007) and Harvey (2001) reported 
and suggested respectively. In 2011, a total of 45.59% 
was exported to the US; 14.18% to Mexico; 8.98% to EU 
and 4.64% to Russia, whiles others (26.61%) accounted 
for cumulative quota sent to Africa and other countries.  

In 2011, US import drop by 10.78% compared to 2010 
import volume (Table 2). The export value also showed a 
percentage decrease of 1.64. EU and Mexico showed a 
percentage increase of both trade quantity and value, 
while Russia follows the US with a decrease.  

The main tilapia processed products in China  are  sold 

 

 

frozen whole fish, frozen fillet, fresh fish fillet, salted 
and/or smoked products, and canned and roasted fish 
fillet. China has earned a reputation as a producer of low 
cost frozen fillets for export in recent years. The real 
market setter for tilapia products is frozen tilapia fillet 
which made up 48% exports in 2011 (Figure7).  

The majority of fish for domestic markets are still sold 
live to local restaurants in the provinces of China. 
Guangdong province not only leads with almost half of all 
production in China, it also contributes much to the 
exported volume. The neighboring provinces such as 
Hainan, Fujian and Guangxi are also contributing to 
international market quota. 
 

 

CONSTRAINTS 

 
Major constraints of tilapia production in China include, 
though not limited to the following. 
 
 
Soaring production costs 

 

The costs for labor, feed, rent, chemicals and 
infrastructure have greatly increased lately. Although 
China used to maintain lower rates for labor in the past, 
the rates for labor have shoot-up by at least 50% over the 
last three years. Aside from labor cost, other major input 
prices have also increased significantly. Higher costs and 
lower market prices for the products have an inverse 
relation to profit making; and are increasing the risks 
involved in entire production thereby discouraging many 
tilapia farmers from investing. Just as the cost of labor 
has increased dramatically, currency exchange rates 
have also inflicted pressure. 
 

 

Price fluctuation 

 

The market price of tilapia has changed drastically over 
the past few years. In 2009, the market price of 500-g live 
tilapia from farmers dropped by U.S. $0.16 /kg. Reacting 
to this, many tilapia farmers began to stock carp or other 
species instead of tilapia. This drop in price caused 
Guangdong, Guangxi, Hainan and Fujian Provinces to 
lower their scale of production. 



6 

 

 
 
 

 

Weather fluctuation 

 

Severe weather fluctuations are negatively impacting 
tilapia production lately. While high summer temperatures 
may have increased disease-related losses of tilapia, the 
very low temperatures at the beginning of 2008 directly 
reduced tilapia output by 25% (230,000 mt) with 
reference to 2007. In addition, many tilapia ponds 
suffered damages that caused hundreds of thousands of 
broodstock and millions of grow out to escape out of their 
confinement. The farms in Hainan for example suffered 
some 80% farm loss. 
 

 

Inadequate cooperation and communication network 

 

The major reason why many producers are incurring 
losses in their production venture is due to the weak 
cooperation and poor communication of market 
dynamics. Production trend and marketing information 
are liable to change with time, but with improved 
cooperation and communication network among market 
actors, future change can be forecasted and timely 
communicated to parties involved; this will abate losses 
and aid in the monitoring of market capacity for importing 
countries and changes in consumers’ preferences, buying 
patterns and earnings. Farmers need to have 
contingency marketing plans so as to tackle the 
temporary or long term loss of export market; this 
therefore call for diversification of tilapia market, and 
exploring other importing countries in order to reduce the 
marketing risks. 
 

 

National brand, policy bottleneck and international 
accreditation 

 

The world market now demands healthy aquaculture 
products from farm to table. Compliance to international 
regulations will foster international trade of tilapia. In 
China, most processing companies whose raw materials 
is live tilapia, would like farmers to comply with key 
standard operating procedures. Nevertheless, some 
tilapia producers still find it difficult to comply with such 
regulations, claiming that it adds to their production cost; 
and this informed the huge volume of tilapia products in 
the domestic market during the early 2000 (from 2000 to 
2007). Now, with government support of tax free 
exportation, farmers are making effort to comply with the 
International Standards of Operation (ISO) and Hazard 
Analysis Critical Control Point (HACCP) which informs 
the present status of China’s exportation of tilapia 
products to the international markets. 
 

 

CONCLUSION 
 
Tilapia production in china is  carried  out mainly in 

  
  

 
 

 

Guangdong, Hainan, Guangxi and Fujian provinces, with 
Guangdong being the leading province. The production 
trend of tilapia in China has changed due to rising market 
demands and favourable production and export policies 
granted by the Chinese government; this is expected to 
continue, everything being equal. Tilapia products 
produced in China reached its final consumers through a 
system of marketing within the production chain. Larger 
quantity of tilapia products from China are exported to the 
US market through a marketing system that involves 
middlemen. Irrespective of some constraints, tilapia 
producers in China are thriving to keep up with the needs 
of their commercial market, by adopting international 
regulations on quality assurance. Findings in work could 
be of interest to potential investors and competitors for 
tilapia market. Future studies should be done to ascertain 
whether other tilapia products such as tilapia fish oil can 
have a market and whether export agents can supply 
directly to the consumer. 
 

 

ACKNOWLEDGEMENTS 

 

This work was supported by China Agriculture Research 
System (CARS-49). The Authors are appreciative to all 
the farmers and the Ministry of Agriculture (MOA) for their 
support. All the reviewers are gratefulness acknowledge. 
 

 
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