Egypt's tilapia farming sector has undergone
rapid development over the past 10 years. The Egyptian tilapia sector has risen
exponentially to become a global production powerhouse, second only to China in
volume. But the country's fragmented sector, strong domestic demand and unique
challenges are keeping the industry from potentially breaking out on the global
stage.
Tilapia production in the country has reached 900,000 metric tons annually --
an 80 percent increase in about 10 years, according to Skretting, the world's
largest aquaculture feed supplier.
Egypt has risen to become the sixth-largest largest aquaculture producer in the
world by volume, thanks to Nile tilapia, which is growing 5 percent annually.
Several fish feed producers are supporting this growth, both domestic and international.
The three largest overseas players are currently Skretting, Aller Aqua and De
Heus-owned Koudijs Kapo Feed.
Nearly all Egyptian production is consumed locally, and local demand will
continue to develop in the coming years, even as export markets grow. What's the hold up? One obvious potential limitation to the tilapia sector's
growth is the availability of water, an issue Egyptians face in general. It is
completely dependent on the Nile for food production, including aquaculture. The positive aspect of aquaculture is that
water can be reused. "In order to grow even more, the sector
needs several developments such as a cold chain supply, investments,
refrigerated transportation vessels," said Aller Aqua Egypt CEO Hussein
Mansour. He said the sector needs to be handled, managed and operated better to
expand as well. "There are expansion plans in the backstage, however we
haven't taken the final decision on them. But we have several options to expand
even further," Mansour said. The production rise is traced to an increase in
small independent farmers starting new aquaculture ventures, backed by the
government's public support of fish farming and increased fish consumption to
16 kilograms per capita annually.
Tilapia farming is not consolidated and there are still many farmers -- tens of
thousands -- mostly originating from family-businesses. Some of the larger
farms produce 5,000 metric tons of fish, highlighting the fragmentation.
The growth is expected to continue. The Food and Agriculture Organization of
the United Nations (FAO) anticipates that Egyptian aquaculture will increase by
more than 68 percent by 2030.
According to the World Bank, global tilapia production is projected to jump
from 4.3 million metric tons in 2010 to 7.3 million tons in 2030. Other feed giants are carefully eyeing the trend
and looking for opportunities. For example, BioMar, the third-largest fish feed
producer, says it has prioritized other markets for now, but is "always open to
enter the Egyptian market if the right opportunity arises" 
Photo: Jespere Heldbo
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