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 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
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|
Production and Operating Costs in US$
|Cost Item||Units||@||Qty/ day||Pdn Cost/day||Pdn Cost/ mth||Pdn Cost/ yr|
|Selling and Distribution||125||1,500|
|Total Operating Costs||381,378||355,576|
- Production costs assumed 312 days per year with daily capacity of fish farming 60,000fish.
- Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
- Direct costs include: materials, supplies and other costs that directly go into production of the product.
- Total monthly days assumed are 26-days.
- The valuation currency used is United States Dollars
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|
Profitability Analysis Table
|Profitability Item||Per day||Per Mnth||Per year|
|Less: Production and Operating Costs||1,140||29631||355,576|
The Government has got funds to support development of Aquaculture. Options available include accessing European Union Funds at very attractive rates. There are also some NGOs that have come out to support the growing of fish because fish is very nutritive in terms of proteins and vitamins therefore very good for feeding children to fight malnutrition. It is well aligned with the policy of poverty eradication programme.