The Heart of Tilapia Farming

An area approximately one and a half times the size of San Francisco is dedicated to tilapia farming in maoming. Fish farms and processing factories are the backbone of this industry.Sixteen factories transform tilapia into products destined for export, primarily to American supermarkets.

The Tariff Impact

Multiple waves of U.S.customs duties have severely impacted Chinese tilapia exports. The $425 million in exports to the U.S. now face taxes reaching 170%, effectively excluding them from thier primary market [3].

Farmers and Factories in Distress

In late April,Maoming fish farmers reported a lack of new fry orders. Fish food manufacturers noted reduced purchases from their customers. Processing factories are scaling down operations, and many farmers claim they are operating at a loss.

Tongwei, a major aquaculture group in China, indicated that a tilapia breeder could lose their job due to these conditions.

These high customs duties strike us hard. The whole sector suffers. people are likely to lose their job.
Huang Songfei,a long-standing buyer in Maoming

While tilapia may represent a small portion of the overall trade between China and the U.S., the threat to livelihoods in Maoming is significant.

We are stuck.
Huang Songfei

Produce or Not Produce: A Tough Decision

March to May is typically the peak season for tilapia repopulation. Young fish are in high demand and quickly purchased by breeders. However, this spring, orders are scarce.

This is the moast difficult year we have known. normally, at that time, we would have already sold a lot. But no one buys. Breeders are afraid.
An anonymous employee

The employee’s manager reported that sales have dropped by more than half.

Some do not even export to the United States, but they still panic. It’s a chain reaction.
An anonymous manager

The price of tilapia plummeted by 17% in early April as the U.S. and China imposed further customs duties. Despite a slight rebound, prices remain dangerously low, and some farmers struggle to break even.

Export Factories in Trouble

Maoming’s 16 export factories are also facing difficulties. They once exported nearly 100,000 tonnes of tilapia annually, mainly to the U.S. and Canada, enough to satisfy the average annual fish consumption of 25 million Americans.

if it continues, everyone will go bankrupt.
Zhu Huazhi, buyer for several processing factories

More than 60% of their production was previously destined for the U.S.

Seeking New Markets

In Hainan, a neighboring province, the U.S. accounts for half of the tilapia exports. The local association of aquatic products has urged companies to seek new markets both in China and abroad.

However, replacing american demand is challenging. while markets exist in the European Union, Africa, and the Middle East, they cannot quickly or fully compensate for the loss of the U.S. market. For example, in Africa, demand is primarily for whole, low-processed fish.

The domestic market also offers limited immediate relief, as the local economy is weak, consumer spending is cautious, and consumption is stagnant.

Hope for a Trade Agreement

In Maoming, the primary hope rests on a potential trade agreement between the U.S.and China.

We will see who will survive that. I have faith in the Chinese economy. If customs duties are lifted, orders will return.
Zhu Huazhi