China’s aquaculture industry is undergoing a period of significant change, driven by falling farmgate prices, soaring feed costs, and shrinking profit margins.
“The Chinese market—especially aquaculture—has seen fish farming profits drop sharply in recent years,” Mr. Liu, aquafeed nutritionist from Tongwei, told Aquafeed.com during the 2025 China Feed Industry Expo in Qingdao. “In the past, even during the off-season, some fish could sell for 40–50 yuan per kilo. Now, prices often don’t exceed 30 yuan.”
Mr. Zhang, production department manager from Haid Group, echoed the concern, citing the example of largemouth bass (“California bass”). “When it was first introduced, farmers could earn up to 20,000 yuan per mu. Now, even a good harvest might yield just 7,000 yuan—and in bad years, they suffer loss. Profit margins have tightened considerably.”
With feed accounting for 60–70% of production costs, fish farmers are seeking more efficient, cost-effective solutions. “Farmers need feed that promotes growth but is also affordable—that’s their biggest demand,” Mr. Liu explained.
The shift is not only economic but technological. As aquaculture techniques mature, survival rates improve, and the focus has turned to maximizing profit. According to Mr. Liu, this means cutting costs in areas like feed and farm management.
This transformation is also fueled by changing consumer preferences. “Production of traditional feeds and low-value species is decreasing,” said Mr. Liu. “Consumers are demanding high-end, better-tasting, and more nutritious species. Older aquaculture practices are being phased out in favor of high-value, specialty species.”
How the aquafeed industry is adapting to this change?
Haid Group sees this as a pivotal moment. “There are no highly profitable species in the industry right now. Transformation is essential—we must lower costs and improve operational efficiency,” said Mr. Zhang. “It’s no longer just about formulas. It’s about a platform — a comprehensive system about how efficiently a company operates overall. You need to reduce various costs — including private costs (e.g., internal expenses), procurement advantages (buying raw materials more cost-effectively), and financial services (how financing helps aquaculture operations).”
Beyond having consistent raw materials and product quality, Tongwei has spent the past two years building standardized feed mills. “Each subsidiary now has an advanced, smart, automated production workshop. All of Tongwei’s current production systems, including the supply chain and sales systems, are being developed with intelligent standards. Even marketing and sales are becoming fully digitized,” Mr. Liu said.
The whole industry is undergoing transformation and upgrading. Companies must rely on technology and product quality to survive. Companies like Fujian Tianma Science and Technology Group, which specializes in eel feed, also manufacture feed for other high-end fish like grouper and large yellow croaker. “We specialize in special-purpose, high-end feeds, typically priced above 10,000 yuan (USD 1,400) per ton. The whole industry is undergoing transformation and upgrading. Companies must rely on technology and product quality to survive,” a spokesperson from the company said.
The company is working on improving the feed for eel larvae. “Traditionally, red worms were used, but now we’ve developed a full-formulated feed that can completely replace red worms,” the company said.
Tianma Tech is also working on reducing phosphorus discharge in wastewater. “Normally, aquaculture wastewater has high phosphorus content, which requires chemical treatment with phosphorus-removal agents. We’re currently in the final testing stage of a feed formula that reduces phosphorus discharge at the source,” the company said.
Credits: Aquafeed.com
RAS shrimp farming: The next big leap
China produces between 1.5 to 2.5 million tons of shrimp annually. “The demand is huge, and it’s still growing. Actually, farmers are shifting from fish to shrimp because the profitability is better,” Mr. Liu said.
Shrimp farming requires high-quality seawater and strict control of disease. Many locations can’t support traditional shrimp farming anymore due to these challenges. Moreover, traditional farming methods are gradually being phased out because the land used is often repurposed for agriculture or commercial development.
To meet the growing demand, Tongwei has heavily invested in indoor recirculating aquaculture system (RAS) shrimp farming. These greenhouse shrimp farming systems (“factories”) raise shrimp in cement ponds and use intensive stocking and water recirculating systems in fully controllable environments. “In recirculating systems, you don’t need to constantly exchange water. Instead, water is reused and treated, which minimizes pollution and preserves water resources. They are the future,” Mr. Liu explained.
A resilient future for aquaculture
Despite the current challenges, the outlook remains positive. “Aquaculture will continue to grow—it’s a key source of high-quality protein,” said Tianma Tech. “While pig and poultry feed demand has slowed, aquaculture feed—especially for specialty species—is on the rise.”
As China’s aquaculture industry evolves, success will depend on innovation, sustainability, and the ability to adapt to shifting market demands. The companies that embrace these changes are poised to lead in the next chapter of global aquaculture.
