New Business Idea AQUACULTURE Fish production and Marketing

 AQUACULTURE

Introduction
Aquaculture is the growing of fish and any other water creatures.
It is a foreign culture in our society. There has been a lot of
encouragement to local communities to get involved but it has not
yet formed grip. However, despite the initial capital outlay, this type
of farming would generate some good financial earning to the
farmers.

The business risk involved is healthy and safety-related risks
surrounding the manufacturing and processing. However, this is
can be solved by employing food scientists and adhering a strict
the regime of health and safety.
The Business Idea estimates fixed capital of US$14,428 and
operating costs of US$4,576,534 generating revenue of US$
295,200 in the first year of operation

Requirements
This business venture requires land with a permanent swamp
preferably owned by the promoter. Construction of ponds is better
done by hiring experts in that field. Once ponds are stocked, then
you need wheelbarrows, spades, slashers and hoes for day to day
operations and a seing net for harvesting.
Capital Investment Requirements in US$

Capital Investment Item	Units	Qty	@	total
Land	No	-	-	1,500
Pond Construction	No	3	4,000	12,000
Wheelbarrow	No	3	28	84
Spades	No	4	4	16
Slashers	No	10	1	10
Hoes	No	5	3.6	18
Seing Net	No	1	800	800
Total	14,428

Production and Operating Costs in US$

Cost Item	Units	@	Qty/ day	Pdn Cost/day	Pdn Cost/ mth	Pdn Cost/ yr
Direct Costs
Fingerlings (tilapia)	Pcs	0.07	72,000	5,040	131,040	1,572,480
Fries (Catfish)	Pcs	0.2	48,000	9,600	249,600	2,995,200
Fertilizers	Kgs	-	-	-	83	996
Fish feeds	Kgs	0.52	17	8.84	229.84	2,758
Sub-total	120	14,64	380,9	4,571

General Costs(Overheads)

Labour	225	2,700
Selling and Distribution	125	1,500
Miscellaneous	75	900
Sub-total	425	5,100
Total Operating Costs	381,378	355,576

1) Production costs assumed 312 days per year with daily capacity of fish farming
60,000fish.
2) Depreciation (fixed asset write off) assumes 4-years life of assets written off at
25% per year for all assets.
3) Direct costs include: materials, supplies and other costs that directly go into
production of the product.
4) Total monthly days assumed are 26-days.
5) The valuation currency used is United States Dollars
Market Analysis
This business proposal does not yield any profits in the first harvest
after six months. This is due to a huge excavation cost for quality
Ponds that lasts for 60 years. The fish market is readily available
because the lake fish is very expensive and scarce since most of it is
processed for export. Secondly, the fish skeletons which were being
sold to the public after processing for export are also currently
exported. Furthermore, aquaculture would be sustained better if
the farmers would indulge in poultry and Piggery because their
dropping would be of great use in the ponds.
Project Product Costs and Price Structure

Item	Period	Out put	@	Pdn Cost/ yr	UPx	Total Rve
Tilapia	6-month	36,000	0.16	5,760	2.3	82800
Per year	72,000	0.16	11,520	2	144000
Cat-fish	6-month	24,000	0.16	3,840	2.6	62,400
Per year	48,000	0.16	7,680	3	144,000
Total	180,000	28,800	433,200

Profitability Analysis Table

Profitability Item	Per day	Per Mnth	Per year
Revenue	1,388	36,100	433,200
Less: Production and Operating Costs	1,140	29631	355,576
Profit	248	33,169	77626