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Brazil's Tilapia Boom Faces High Costs and Foreign Competition

BRAZIL
Friday, September 05, 2025, 01:00 (GMT + 9)

Despite Production Growth, Producers Grapple with Tight Margins and Inexpensive Imports

FOZ DO IGUAÇU—Tilapia production in Brazil is experiencing a remarkable boom, driven by increased domestic consumption and a growing international presence. However, as the sector expands, producers face significant challenges, including high production costs, price fluctuations, and intense competition from inexpensive imports.

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Fish feed remains the primary hurdle, accounting for approximately 75% of the total production cost. Despite a slight decrease in feed prices in the first half of 2025, profitability remains under pressure. According to a study by the Center for Advanced Studies in Applied Economics (Cepea), the average gross margin per kilogram sold dropped by 45.5%, from US$0.55 to US$0.29, compared to the same period last year.

"Even a modest reduction in feed costs can make a difference in producer profitability, especially in regions with greater production efficiency," explained Thiago Bernardino de Carvalho, a Cepea researcher and professor at Esalq/USP.

Growth in Consumption and Exports

Domestic fish consumption in Brazil has seen notable growth, reaching 2.84 kg per person in 2023, nearly double what was recorded a decade ago. On the export front, tilapia's performance is particularly impressive, representing 95% of the country's total fish exports and generating US$26.3 million in the first half of 2025.

However, the sector faces a serious threat from foreign competition. The entry of lower-cost tilapia from countries like Vietnam, coupled with the uncertainty of tariffs from the United States, Brazil's main trading partner in the sector, has raised concerns.

During his presentation at the 7th International Fish Congress & Fish Expo Brasil (IFC Brasil) in Foz do Iguaçu, Professor Carvalho emphasized the need for producers to strictly control costs, explore new markets, and diversify their products to ensure long-term profitability.

Despite these challenges, the potential of tilapia in Brazil is undeniable. With the expected reduction in feed costs and the industry's ability to compete globally, Carvalho projects a promising future for tilapia, which is solidifying its position as one of the country's leading animal proteins.

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