Prices for farmed tilapia harvested in Guangdong and Guangxi provinces of China have fallen since early October, squeezed down by good harvest volumes and weak domestic consumption, according to Undercurrent News industry sources.

This week -- week 41 (Oct 7-12) -- prices for 500-800g tilapia harvested from Guangdong farms and delivered to factories fell to CNY 10.2/kg ($1.44/kg), down from CNY 10.6/kg in early October and CNY 11.2/kg in September, according to Undercurrent's price portal. The smaller 300-500g size in Guangdong dropped CNY 0.4/kg week-over-week to CNY 8.2/kg.

In contrast, prices in Hainan province remained stable at CNY 10.6/kg for fish over 500g and CNY 8.6/kg for 300-500g fish. 

In Guangdong and Guangxi, strong harvests outstripped demand and prompted processors to cut purchase prices. By comparison, sources attribute Hainan's steady prices to farms still recovering from Typhoon Molave in September.

"Harvest volumes began to surge around the National Day holiday (Oct. 1), forcing us to lower prices. With more and more fish flooding the market, we've cut prices further this week," explained an executive at a major Guangdong processor.

"From a supply perspective, processors are not concerned about the availability of raw materials, as good prices in the first half of the year led to big increases in stocking in Guangdong," he added.

"I believe the tilapia market is entering a new downward cycle. The good news is that feed prices have also decreased, which is relieving some pressure on farmers," he concluded.

Chinese-language news publication Fish First reported that October is the peak season for tilapia harvesting, as fingerlings stocked in the first half of the year are harvested in the fourth quarter.

"Prices in Zhanjiang and Maoming are fluctuating daily. On Oct. 9, they were CNY 10.4/kg for 500g+ and CNY 8.4/kg for 300-500g. However, on Oct. 10, processing plants reduced the prices by CNY 0.2/kg again," the report said.

"Although factories in Guangdong are actively purchasing fish, the increasing volume has caused long lines of trucks transporting fish to the plants," it said.

Fish First also reported that the local consumption market is "very weak" after China's "Golden Week" holiday, and as prices keep falling, farmers are compelled to harvest more fish, resulting in a "panic" harvesting situation in the market.

Undercurrent previously reported that the frozen fillet markets in the US were experiencing significant disruptions and volatility due to a mix of environmental and supply-side challenges, impacting wholesale pricing.

Typhoon Mojie, which made landfall Sept. 6-7, has severely impacted tilapia processing in key production areas like Hainan and Guangdong.

As of Sept. 20, the US wholesale prices for tilapia, boneless/skinless, frozen fillets from China, individually vacuum-packed, for moisture-added product averages $3.00 per pound for 3-5 ounce sizes, $3.10/lb for 5-7 ounce sizes, and $3.25/lb for larger 7-9 oz. sizes.