2022, Volume 25, Paper 6
ISSN: 2209-6612

Analysis of the Tilapia Value Chain in the Philippines

Ross Nelligan – Postgraduate Student, Master of Global Food and Agricultural Business, University of Adelaide

Abstract

The tilapia value chain of the Philippines is an important contributor to food security now and will be into the future. A study of the chain is essential in order to strengthen the chain, mitigate risks and vulnerabilities and overcome constraints. The value chain consists of six main functional areas, from inputs through to retailers who interact with consumers of the fish and each functional area has its own set of risks and efficiencies. Value addition for the most common marketing channel shows that farmers add the most value as they raise the fish from fingerling to market size over a period of several months. Examination of the total variable costs required to raise each tilapia shows that feed is the biggest single cost and that almost one third of the retail price is profit for the chain actors. Location of physical facilities is one of the most critical value chain drivers in order to reduce transport costs and minimise loss of quality as the tilapia is physically moved between value chain actors. Analysis shows that the tilapia value chain has high efficiency and low responsiveness, broadly achieving strategic fit with its competitive strategy. By benchmarking against the tilapia industry in China, the performance of the tilapia value chain in the Philippines is shown to be lacking in the areas of production efficiency, certification, and processing capacity. Two main conclusions drawn from this study are that the tilapia value chain needs to better prepare for the effects of climate change by breeding heat-tolerant and salt-tolerant strains of tilapia, and secondly, a marketing campaign to improve consumer perception of tilapia could drive further demand and willingness to pay.

Key words: tilapia, value chain, Philippines, climate change, aquaculture

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