Sunteți pe pagina 1din 15

CAROUSEL FISH FARM

PART I
1.0 Executive Summary
1.1 The following report and recommendation relate to the proposal by Carousel Fish Farm
to establish a Fishery at No 9 Park Avenue, G.R.A Enugu.
1.2 The project will require a start-up capital of N3,160,000, made up of N2,450,000 for
fixed assets and N710,000 for working capital.
1.3 The vision of the enterprise is to be the most outstanding and leading catfish producer
in South-East of Nigeria, and indeed the whole country.
1.4 The farm is located at Enugu because of its proximity to our target market and its
closeness to our sources of feed for the fisheries
1.5 A huge market exists for the business to serve. They include but not limited to
Households, Individuals, Hotels, Restaurants, Fast food eateries and Agriculture
merchants within Enugu State and the South-East geo-political zone of Nigeria.
1.6 The financial projections show that the project would be financially stable and liquid
by the time it matures. The sales figure stands at N2,000,000, N2,150,000 and
N2,300,000 for year 1, year 2 and year 3 respectively. Also the profits after tax are:
The cash flow position is equally good and encouraging by the second year through the
third year.
1.7 The competitive edge of the enterprise lies in its ability to produce fish at exceptional
and affordable prices within customer reach.
1.8 The sales forecast for the first three years are shown below:
Table 1: Sales forecast for the first three years
Year 1 Year2 Year 3
N970,000 1,509,400 1,529,100

From the point of view of the analysis of our findings, the proposed project is found to be
technically feasible, financially viable, and economically desirable. Thus the project offers good
investment benefits, and is therefore highly recommended for implementation.

PART II
2.0 Industry Analysis
The planned fish farm project is the result of strong industry and needs assessment studies
undertaken in the South Eastern Zone of Nigeria, particularly Enugu by the promoters of this
project. The study reveals vast opportunities available in the agriculture industry which can be
leveraged upon to contribute to the growing Nigerian economy in national food production and
perhaps, the exportation of fish and sea foods to other countries in order to make profit. Investing
in fish farming will firm up the Naira, improve GDP, reduce inflation and create more jobs.

The study also revealed that Nigeria’s total annual fish demand is estimated at 3.2 million metric
tonnes (mmt). However, just 30% of this demand is met domestically, resulting in an annual spend
of N125bn (US$625m) on fish imports. This implies that Nigeria’s aquaculture industry is greatly
untapped. Also, the current campaign for more consumption of fish protein has further heightened
the demand for fish. With the population of Nigeria growing at 5.7% annually, this expanding
demand trend is expected to be sustained in the future.

2.1 Vision Statement


To be the most outstanding and leading catfish producer in South-East of Nigeria, and indeed the
whole country

2.2 Mission Statement


Carousel Fish Farm Ltd, is a world class and registered fish and seafood farming company that is
committed to raising fish for both the South-East of Nigeria, and indeed the whole country. We
want our fish to flood the nooks and crannies of Nigeria and other countries of the world.

2.3 Key Success Factors


The key success factors are:
a. Fishery products are the most popular animal products found in the Nigerian marketplace.
Fish is cheaper than meat, so it sells faster. It is affordable even to average households.
b. Fish farms are environmental friendly. Much unlike poultry farming, fish farming can be
established anywhere as they do not pose any environmental hazard.
c. Fish has a rapid growth cycle, and besides fish farmers can make the use of special feeds
to enhance the growth rate of their fish. This way, the fish can be harvested and resold after
a very short time.
d. Fish farming is very lucrative. With adequate preparation, execution and management, one
could earn between N3million and N7million with an investment of N3million, after just
six months.
e. Fish is a great protein source. It is low on fat, and contains vitamins like Riboflavin and
Vitamin D, as well as Omega-3 fatty acids, which are helpful to the health and operations
of the heart and brain.
f. The main promoter has undergone training in entrepreneurship and in the cultivation and
harvesting of fish
g. Carousel fish farm intends to build a state of the art fish pond framework accommodating
optimum number of cat fish with lessened possible hazards
h. A diverse slaughters network, market chain management, optimum inventory level and
‘customer is king’ policy is are pivotal key success factors for the farm
i. Regular visits by vetinary medical workers and a hygienic cat fish house environment

2.4 Inherent Risks.


a. In fish farming, there are no by-products. Much unlike in poultry keeping where by-
products like the bird droppings can be sold as manure or components of fish feeds, and
eggs can be sold to consumers thereby constituting an extra income in poultry keeping; fish
farming has no such ‘by-product advantage’. The business intends to use these bird
droppings as components of fish feeds.

b. Due to production costs, fish from man-made ponds are usually costlier than those obtained
by fishermen from rivers. The business will therefore face the challenge of competition
from local fishermen, who supply fish to wholesalers and consumers at cheaper prices. The
business intends to major on catfish, which can be made in ponds in order to gain
competitive edge over fishermen who harvest other types of fishes that grow only in the
sea.

c. Compared to setting up a poultry or snail farm, establishing a fish farm is more expensive.
It is capital intensive and involves a lot of planning.

d. Fish are delicate animals that require careful management. Any slight error in maintenance
could lead to a drop in fish production. In some cases, some fishes may die, and this
amounts to financial losses. Competent staff and personnel will be employed to carefully
manage the fish.
2.5 Business Ownership
The business is a sole proprietorship owned and managed by Ajah Ogochukwu Peace, who has
undergone the requisite training for the management of a fish farm.
2.6 Locational Factors
The fish farm is located at No 9 Park Avenue, G.R.A Enugu. This choice of location is informed
by the following reasons:
1. Availability of land to contain expansion of the fish farm
2. Existence of good road network and ease of market access
3. Availability of cheap and reliable labour
4. Its proximity to produce markets in Enugu will make it easy to access feed supply sources
for the fishery.

2.7 Available Market


As mentioned earlier, information from survey shows that about Nigeria’s total annual fish demand
is estimated at 3.2 million metric tonnes (mmt). However, just 30% of this demand is met
domestically, resulting in an annual spend of N125bn (US$625m) on fish imports. This implies
that Nigeria’s aquaculture industry is greatly untapped. The current campaign for more
consumption of fish as a better alternative to other types of animal protein has further heightened
the demand for fish in the state and country. Within Enugu area, expert opinion has it that not more
than 32% of existing demand for fish are being met by existing producers and suppliers. This
leaves about 68% of demand-supply gap, implying a huge market available for new entrants into
the business. This is cheering information for the promoters whose primary market is in the Enugu
area. Also, with the population of Nigeria growing at 5.7% annually, this expanding demand trend
is expected to be sustained in the future.

PART III
3.0 Products
Carousel Fish farm will provide only the following product:
a. catfish

3.1 Product Description

Fish farming consists of two major subdivisions, which could either be operated separately or as
an integrated process. The two subdivisions are the nursery and the grow-out pond operation. The
nursery operation is the basis for the grow-out operation and as such it cannot be operated without
the nursery.

 Nursery Pond Operation

The nursery involves the inducement of the female fish to lay eggs, which are then
fertilized, incubated and hatched fish are known as fries. These fries are then nurtured from
between three and four weeks into fingerlings which is the size suitable for use in the fish
grow-out operation.

 Grow-out Operation

The nursery and grow-out operation is referred to as primary operation. It involves the
nurturing of the three or four weeks within which they could grow into post fingerlings,
mini juveniles and juveniles respectively. At this point, there are nurtured for between three
to four months into grow-out or table size fish suitable for sale and consumption.

Consequently, Carousel Fish farm has planned her fish farm in such a way that about 2 tons of fish
will be up for sales every three months. A ton of catfish weighs 1000kg and a single mature
juvenile weighs about 1kg. Two or three mini juveniles weigh 1kg also. Thus, in all, the farm will
produce about 2000 fishes every three months and 5000 every 6 months. The schedule of
production will ensure that the farm maintains its reputation amongst her customers as the place
where suppliers of juveniles are most assured.

3.2 Costing

The costing of the fish is mainly built around two major cost items, they are:
a. feeding
b. staff salary

Feeding: Upon hatching, the fries (small fish) is started with atamia. This is the powder-like form
of the feed. It is the most expensive of all the feed stages but the consumption rate of these fishes
at this time is relatively low. This feed type contains adequate minerals, vitamins and nourishment
to support growth, development and protection hence they are specially made. Below is the cost
analysis of the feeding of the catfish for the first 6 months of maturity.

Table 2: Cost Analysis for feeding of Catfish for first Six months

Atamia Floating Floating


Feed Pellets Feed
Type 0.2, 0.6, 0.8- 1.2-2mm
1mm
Consumptio Consumptio Consump Total Salary Total Uni
Unit/N n Rate/Cost n Rate/Cost tion Cost of & other Cost t
o of (N) per (N) per Rate/Cost Feed Expens per Cos
Fish week week (N) per es cycle t
0-3 weeks 1-3 months week (6
3-6 months)
months

5000 15000 120000 480000 6150000 900000 1515000 303

3.3 Market Demand

Carousel Fish Farm is located at 9 Park Avenue G.R.A Enugu which is within the reach of some
markets like Ogbete, Meyo, New market, Orie-Emene, and Kenyatta where fish is high on demand.
Information from experienced operators in the business reveals that about 100,000 metric tons of
fish are demanded yearly in Enugu and its environs for the past 4 years. And that this demand
figure is expected to increase as population within the market area being considered increases.
Experienced operators are agreed on the fact that not more than 35% of the fish demand figures
are met by existing fish farms.

3.4 Projected Annual demand of Fish foods in Enugu and its environs (2019-2021)

As earlier stated, about 100,000 metric tons of fish were demanded yearly in Enugu and its
environs for the past 4 years. This figure is expected to grow with the growth in population. Since
population growth rate in the area hovers around 2.5% to 3.25% for about 5 years now, it seems
rational to expect that the demand for fish will grow with at least a growth rate of ½% for the next
three years. (See table)

Table 3: Projected Annual demand of Fish foods in Enugu and its environs (2019-2021)

S/N Years Annual Growth Rate Projected Demand (in tons)

0 Base year (0) (2018) 0.5% 100,000

1 2019 0.5% 125,000

2 2020 0.5% 150,000

3 2021 0.5% 200,000

Total 20% 575,000

Average 0.5% 143,750

The projected average annual demand of fish in Enugu and its environment is about 143,750. It is
expected that this level of demand will subsist for the years following.

3.5 Projected Demand-Supply Gap of Fish products in Enugu and its Environs

As earlier stated, of the total demand for fish, only about 35% of the demand are met by existing
fish farms in the area. Thus, the demand-supply gap of fish in Enugu and its environs is shown in
Table 4 below:

Table 4: Demand-Supply Gap of Fish in Enugu and environs

Adjustment Demand-Supply
Gap

Estimated average annual demand 200,000

Less 35% of supplies of existing fish farms in the area 70,000

130,000

Less 20% due to expansion of existing fish farms and establishment of 26,000
new ones
104,000

Less 5% estimate error 52,000

Estimated Demand-Supply Gap 52,000

Anticipated Annual Production of Fish 10,400

The plan however is to produce about 10,400 tons of fish yearly (based on the installed capacity).
This represents about 20% of the total demand-supply gap of fish. It is therefore assumed that sales
will not be a problem.

PART IV

Market, Consumers and Competitors

4.0 Market Analysis

Carousel Fish farm has an exciting business opportunity since the market for fish protein is
unlimited and ever increasing especially in Enugu and its environs due to the increase in population
and the campaign towards more consumption of fish protein as a better alternative to animal
protein.

4.1 Customers/Market Segmentation.


The following are classes of customers for the consumption of fish:
a. Agricultural Merchants: These are wholesalers and retailers who buy fish from farms,
freeze it and package it for the purpose of selling it. They are usually price sensitive but
can buy in bulk and pay in advance.
b. Households and Individuals: This class can buy directly from the farm or from the
merchants. They usually buy in bits (usually in kilos) and sometimes are not particularly
price sensitive because the price of fish is generally lower than other kinds of meat. They
are however sensitive to hygienic issues and quality of fish.
c. Hotels, Restaurants, Fast food eateries: This class of customers buy in bulk since they
say numerous customers, and they sometimes pay in advance. They are however price
sensitive.

Carousel Fish Farm plans to articulate appropriate strategy for each class of customer.

PART V

5.0 Marketing Plan.


Although agricultural merchants who buy from sources within and outside the state abound, there
are no major fish farms in Enugu area hence there is complete absence of structured and well
organized fish farms that will put up commendable competition. However, the main competitors
in the area are the importers of frozen fish. From analysis conducted, the cost per kilogram of
frozen fish, popularly called ice-fish is N750. Further investigations reveal that about 3 units of
the ice-fish weigh 1kg making each unit about N250.

Currently, the catfish is sold to main distributors at N500 per kilogram, and it is retailed at N600
per kilogram. Carousel fish farm intends to sell at this price in order to compete favorably, break
even and make profits. Survey data has shown that catfish is preferred to the frozen ice-fish in
nutritional taste and value. Therefore, if Carousel Fish farm commences operations as planned, it
will be a market leader in no distant time.

5.1 Promotional Strategy


Carousel Fish farm is aware that the reason why some fish and seafood farming companies hardly
make good profits is their inability to sell off their fish and seafood as at when due. The company’s
sales and marketing team will be recruited based on their vast experience in the fish and seafood
aquaculture industry and they will be trained on a regular basis so as to be well equipped to meet
their targets and the overall business goal of Carousel Fish farm

5.2 Marketing Strategy


Over and above, sale and marketing strategies will be perfected first by networking with
agriculture merchants and businesses that rely on daily supply of fish and seafood that are likely
to become our customers. In summary, Carousel Fish farm will adopt the following strategies in
marketing our fish and seafood;

 Introduce our business by sending introductory letters alongside our brochure to stake
holders in the agriculture industry, households, hotels and restaurants and agriculture
produce merchants et.al.
 Advertise our business in agriculture and food related magazines and websites
 Attend related agriculture and food expos, seminars, and business fairs et al
 Leverage on the internet to promote our business
 Engage in direct marketing
 Encourage the use of word of mouth marketing (referrals)
 Launch our juveniles into the market at a highly competitive price
 Offer trade discounts to drive the market faster
 Distribute calendars and almanacs to the numerous customers to help increase the farm’s
popularity amongst the middlemen in the fish market.

5.3 Market Positioning


Carousel Fish farm will position itself as the prime-mover and market leader in the fish market in
Enugu and its environs. The farm intends to create a peculiar leading edge for itself through an
appealing image before the customers, competitors and general public. The firm intends that her
stakeholders would view her in the following ways:
 As a producer and provider of fresh fish with the best lean meat quality
 As a farm that has the customers’ interest, in the forms of hygiene, pricing and delivery at
heart
 As a trustworthy provider of consistently reliable fish meat.

5.4 Projected sales for first six months


Table 5:
QUANTITY UNIT PRICE (N) AMOUNT (N)

BREEDING 5000 303 1,515,000

SELLING 4000 500 2,000,000

PROFIT 485,000

5.5 Projected sales for one first three years


Table 6:
QUANTITY UNIT PRICE (N) AMOUNT (N)
BREEDING
Year One 10000 303 3,030,000
SELLING
8000 500 4,000,000
PROFIT
970,000
BREEDING 10200 303 3,090,600
Year two
SELLING 9200 500 4,600,000

PROFIT 1,509,400

BREEDING 10300 303 3,120,900


Year Three
SELLING 9300 500 4,650,000

PROFIT 1,529,100
The farm intends to expand its capacity after the first three years so as to meet up with the
increasing demand for fish. Also there will be a constant stock of fish of 1000 to ensure continuous
production. Research shows that 10% loss on fish is recorded during harvest. For analysis purpose,
a loss margin of 20% is given for business safety reasons. To push sales however, 2% discount is
given to regular customers. Analysis is presented in the table above.

PART VI
6.1 Management and Organization
Carousel fish farm is a sole proprietorship owned and managed by Barr. Ajah Ogochukwu Peace.
She is a law expert with basic knowledge in financial management which she is expected to utilize
in running the farm. To help in the daily management of the farm, some other good hands will be
hired. The plan is that the hired hands will compliment Barr. Ajah especially in the area of technical
know-how in fish farming. The following table shows that staff and management compliments of
the fish farm:

Table 7: Management and Labour Compliments

S/N Positions No of Staff Annual Salary per staff (N) Total

1 Proprietor 1 360,000 360,000

2 Farm Assistants 3 156,000 468,000

3 Typist/Cashier 1 144,000 144,000

4 Security Personnel 2 120,000 240,000


1,212,000
Add 5% fringe benefits 60,600

Grand Total 1,272,600


Figure 1: Organizational structure of the farm:

Proprietor

Fish Farm Assistants Fish Farm Assistants Cashier/Typist


(Feeding) (Water, drugs and cleaning)

Security
Personnel
PART VII
Legal, Environmental, Societal and Regulatory Issues
7.1 Legal Issues
Carousel Fish Farm plans to commence operations as a sole proprietorship. As such, it is just
enough to register the business name with the appropriate department at the Local government
Headquarters and Corporate Affairs Commission. Every attempt will be made to get the necessary
permit and licenses.

7.2 Environmental Issues


Carousel fish farm will not pose any challenge to the environment of operation. Fish farming
neither pollutes nor degrades the environment.
7.3 Social Issues
The implementation of this project will bring about social and economic benefits and
developments to the society in the following ways:
a. New jobs will be created
b. Wealth creation and poverty reduction
c. Provision of available source of protein to the community

7.4 Regulatory Issues


The fish farm will comply with all environmental regulations, as well as relevant industrial safety
regulatory requirements.
PART VIII
8.0 Risk Analysis
The project has been subjected to risk analysis and some inherent risks identified and appropriate
mitigants proffered to prevent the business from grinding to a halt.
8.1 SWOT Analysis
A SWOT analysis carried out on the project reveals the following:
8.1.1 Strengths
 The location of the fish farms ensures easy access to targeted customers
 Catfish, which is the specie of fish cultivated is on a high demand
 The fish farm has plans on ground to contain expansion which is one of the major
challenges of fish farming
The fish farm intends to build and leverage on these strengths
8.1.2 Weaknesses
 Initial problems of raising adequate capital for the project anticipated
 The proprietor has limited experience and expertise in fish farming
 The fish farm will depend on the services of outside feed mixers for the feed needs of the
farm. Alternatively, the farm may have to import its feeds which is currently very high in
price.
Carousel fish farm plans to address these weaknesses by hiring the services of skilled farm hands
and retaining the services of experts in fish farming. The farm also intends to raise capital through
loans.
8.1.3 Opportunities
 The demand for fish keeps increasing, with no corresponding increase in demand. Also,
the possibility of exporting fish in the future is also a prospect the business seeks to exploit.
 Multiple markets, middlemen and agricultural merchants to market and distribute the
products
 Favorable state and national laws and regulations supporting local production of fish
8.1.4 Threats
 Increased competition due to entry of more fish farmers
 Low initial demand
 Natural disasters such as flooding and diseases
 Scarcity of fish feeds
To checkmate these threats, the farm will mount aggressive awareness campaigns and other
promotion activities that will inform the market of a new fish farm in town with quality fish.
8.2 Exit Strategy
No exit strategy is planned, rather the farm intends to diversify to the production of tilapia and
mackerel. Commented [h1]:

PART IX
9.1 Summary of Project Cost
The total cost of the project is N3,160,000 which is made up of N2,450,000 and N710,000 working
capital.
9.2 Fixed Capital Investments
Carousel Fish Farm is located at No 9 Park Avenue, G.R.A Enugu on a land area of about 5
standard plots of 60” x 20”. The site is accessible by road all year round. The following table shows
the fixed capital investments required for the projects.
Table 8: Fixed Capital Investments
S/N Item Cost (N) Number Total Amount (N)
1 Construction of Concrete ponds 200000 4 800000
2 Wiring of water system 50000 - 50000
3 Construction of Office 200000 - 200000
4 Store 150000 1 150000
5 Generator/Wiring 150000 1 50000
6 Freezers 100000 1 100000
7 Sinking of Borehole 600000 1 600000
8 Fishing Kits 20000 200000
9 Fencing of the ponds 200000 200000
10 Labour 100000 100000
Total 2450000

9.3 Working Capital Investments


Table 9
S/N Item Cost (N)
Number Total Amount
(N)
1 Feed (6 bags per month for one year) 5500 x 6 = 12 396,000
33,000
2 Drugs (For prevention and curing of 10000
diseases)
3 Purification 50000
4 Fuelling for the water ponds 150,000
5 Transportation of products to nearby 100,000
markets
5 Miscellaneous 4000
Total 710,000

9.4 Utilities
The location of the fish farm is connected to sources of water and electricity, although these
utilities are not very consistent in supply. However, the farm will be powered by a generator set
whenever electricity supply is unavailable.
9.5 Other Expenses
There are other expenses to be incurred in the course of running the fish farm. They are shown in
the table below:
Table 10: Other Expenses
Type of Expense Year 1 (N) Year 2 (N) Year 3 (N)
Vehicle Maintenance 100000 105000 110000
Business Travels 30000 31500 33000
Public Relations/Advert 90000 94500 99000
Miscellaneous 50000 52500 53600
Total 270000 283500 295600

9.6 Other Considerations and Justifications


9.6.1 Economic Justification
From the point of view of our study and analysis of the findings made, the project offers good
benefits to the promoter, and the economy. Wealth will be created even as jobs are also created.
These are consistent with the federal and state governmrnts’policy on entrepreneurship, wealth
and job creation.
9.6.2 Commercial Viability
The commercial viability of the project is very clear. The project has been found to be
commercially viable, having shown through projections, an impressive sales, profits and cash flow
projections.
9.6.3 Conclusion
The project deserves to be funded and implemented.
s

S-ar putea să vă placă și