Business

Avia Collinder, Business Writer

The local demand for freshwater fish is on the rebound, but there is no corresponding return to production to fill the gap despite urgings from the state for growers and processors to ramp up output.

An aquaculture fish monitoring committee, created by the Ministry of Agriculture and Fisheries to drive the production and gauge supply and demand, has missed an early July deadline to submit a report on the issue.

"They had their first meeting but there is work still to be done," chief technical director in the Ministry of Agriculture and Fisheries, Dr Marc Panton, said.

Jamaica suspended fish imports from south-east Asian fish sources in April citing sanitary and phyto-sanitary concerns.

The local consumption market is now looking to Jamaican processors for supplies, but the latter are wary that the demand shift might not hold.

Fish farmers lost local market share in 2008 and 2009 when locally produced frozen tilapia fillet were replaced by imported stock mainly from China that sold at half the price of domestic product.

Jamaica Broilers Group, which exported about 100,000 pounds of frozen fillet per week at its peak, had slashed production and later began importing frozen fillet in order to retain customers unwilling to pay high prices.

Following a meeting ministry officials had in May with local fish farmers and processors, Dr Panton reported that production was "a work in progress".

"I left the meeting feeling it was a good start to the discussion," he said.

"In general, the mood of the meeting was one of trying to get to a level of cooperation. We left with an understanding of how best to support the sector."

Panton said Jamaica could reclaim its position as the largest tilapia producer in the Caribbean, noting that in the Jamaican market fast-food chains KFC and Burger King could use as much as 30,000 kilograms of fish fillet monthly.

"We were the largest producer of tilapia in the Caribbean but, due to a liberal trade policy, productive capacity was wiped out," he said.

"We have the capacity to produce and we want to bring it back."

But, Jamaica Broilers, which up to early last year, was the largest local producer, is in a wait-and-see mode. Sales Manager Oliver Mair told the Sunday Business after the May meeting that his company was assessing the situation to determine how best to increase production.

"We still produce tilapia. We have never stopped (producing) on the local market," said Mair.

"We are looking at bumping up production to a point, but for us to revisit it is not a light decision."

He said then that the meeting was a first step towards that decision. Last week, he said there had been no change in the situation.

"There is no further update from the subcommittee; they are still meeting."

challenging tilapia market

Mair said compared to poultry production, Broilers' core business, the tilapia market was much more challenging.

"The poultry industry with 12,000 small farmers who are price competitive towards each other has proven a good model. Fish is different," he said.

"It takes 18-19 months for production, and cannot be ramped up overnight."

The local market for tilapia is made up largely of restaurants and hotels. Jamaica Broilers also exported to US grocers Winn-Dixie and Publix, as well as UK-based supermarket chain Tesco, but withdrew from the overseas market in 2008.

There are indications from some local farmers that the proposal of some form of subsidy to the industry might be a welcome suggestion from the aquaculture committee.

But, Panton said in May that providing fingerlings or baby fish stock to some farmers had met with protest from others.

Speaking of price competitiveness, he said those who are comparing Jamaican fish growing and processing operations to the Chinese should note the Asian country's vast land space, low electricity costs and few security problems which all result in lower production costs.

Development of land fishing, Panton said, would both provide employment and reduce pressure on sea fish.

avia.collinder@gleanerjm.com