Free Fish Farming Business Plan

Free Fish Farming Business Plan

If you are planning for a commercial fish farming business, no doubt fish farming is a more profitable venture. In a commercial fish farming business plan, you need to study about the process of farming fish for good profits.

Market analysis and business plans are key in fish farming business, you must do market research before getting into fish farming. Analyze the local market trends and demand for the type of fishes. If you want a commercial fish farming business for exporting, talk to a fish processing units, choosing exact fish species for your business to get success in fish farming business. You need to choose fish species for farming depending on the climatic conditions, market demand, maintenance point of view and per the availability of resources.  

 

Did you apply for NEXIT Loan, Tony Elumelu $5000 startup grants or any other loan or grants? We have prepared a well written free business plan for you. Below is the Fish Farming Business Plan.

Free Fish Farming Business Plan.

Executive summary

Introduction

1. The product/services
2. Industry and Market Analysis
3. Competition
4. SWOT Analysis
5. Operation Plans
6. Marketing Plan
7. Management
8. Financial Plan
9.  Appendices

 

Executive Summary

Your Business Name is an existing aquaculture enterprise; she is located at Business Address/Location.

We specialize in the production and sale of high-quality fresh catfish and well processes, dried and packaged dry fish. Our target markets are the fast-food operators, restaurant operators, market women, roadside barbecue operators, hotel managers and the general public.

The proposed business would operate under the sole proprietor business ownership structure and will be managed by the prime mover of the business, Name of CEO. He is a senior school certificate holder with passes at credit level. He is also a trained and certified entrepreneur by the south-south entrepreneurship development center Calabar, Cross River state.

Our vision is to is to become leading producer of health fish in the whole Calabar and our mission is to provide all year-round quality, nutritious and healthy catfish at affordable price

 

We require the sum of N1, 550, 000 ($5, 000) as a growth fund where N689, 000 will be used for capital assets and N861, 000 will be used for working capital for the periods of 12 months of business operations

We anticipate a sales turnover of N10, 073, 000 and gross profit of N9, 172, 000 and an operating profit of N7, 768, 000 and a net profit after tax of N7, 380, 000 by our 1^st year of commencement of operation.

The business risks associated to the business are as follows delay in collection of operational permits, infection of fishes, predators attack, late delivery of products, loss of product quality and lack of supplies and I will adopt the following strategies to mitigate them

1.    Early registration of business name before commencing operation.

2.    Disinfection of fish pond with disinfectant before breeding process begins

3.    Proper coverage and protection of the fish ponds with solid nets

4.    Employment of fish farm experts.

5.    Working with a marking system and distributor who can handle products correctly.

6.    Adequate purchase and proper storage for feeds and supply.

 

The business will benefit the promoter, the employee, the immediate community, state and nation in the following ways:

• You and Your Family: The business will help provide alternative source of income without being dependent on my husband and I would also help to others.
• Your Employees: Our employees will also be financially independent and will gain the business knowledge to start their own enterprise.
• Immediate Community: From the success of the business, our immediate community members will also want to go into the business, which would provide job opportunity and also training incentives.
• State and Nation: As a business, we will be paying task to government and therefore increase their revenue base and also reduce un-employment and check crime.

 

BUSINESS MODEL CANVAS

Key Partnerships

·         Bank

·         Transporters

·         Catfish Farmer Association (CAFAN)

·         Insurance Company

·         Suppliers of Equipment

·         Suppliers of feed

 

Key Activities

·         Sourcing fingerling and marketing

·         Having well oxygenated water at all times

·         Sorting fingerling into different ponds according to size

·         Account keeping

·         Feeding

·         Treating of the fish/ pond

 

Key Resources

·         Land for pond

·         Human resources

·         Capital

·         Water (good source)

·         Equipment

·         Skilled and unskilled labour

 

Value Offering

• Healthy and fast-growing fingerlings
• Quality table size catfish
• Training

Customer Relationship

·         Discount offering for bulk purchase and regular customers

·         Credit facilities

·         Provision of quality catfish all year round

·         Good public relation

·         Customer feedback

 

Customer Segments

·         Fast food operators

·         Restaurants operators

·         Market women

·         Road side vendors

·         Barbeque operators

·         Hotel managers

·         General public

 

Channels

• Banner
• Sign boards
• Posters
• Word of mouth
• Referrals
• Social media

 

Cost Structure

Pre-operational cost       

• Purchase of fiber pond or plastic ponds  
• Digging of borehole
• Cost of purchase of fingerlings
• Fish feed
• Staff salaries
• Drugs
• Business registration

 

Operational Cost:

• Salary
• Tax
• Utility bills
• Cost of feed.
• Premium   

 

Revenue Model

• Revenue from sales of frozen cat fish
• Revenue from sales of Dried and package cat fish
• Profit from sales of table size cat fish
• Training

 

Chapter One

Business Overview:

1.1       Description of the Business

The name of our business is Your Business Name and is located at Business Address/Location

We specialize in the production and sale of high-quality fresh catfish and well processes, dried and packaged dry fish. Our target markets are the fast-food operators, restaurant operators, market women, roadside barbecue operators, hotel managers and the general public.

 

1.2       Vision and Mission Statement

Vision - Our vision is to is to become a leading producer of health fish in the whole Calabar South L.G.A.

Mission - Our mission is to provide all year-round quality, nutritious and healthy catfish at affordable price.

 

1.3       Business Objective(s)

•           To achieve a sales turnover of N10, 073, 000 and gross profit of N9, 172, 000 and an operating profit of N7, 768, 000 and a net profit after tax of N7, 380, 000 by our 1st year of commencement of operation.

•           To increase our staff salary by 20% by our 2nd year of operation.

•           To have a customer base of 100 in our fourth year of operation and increase to 300 before the end of our 7th year in business.

 

Other objectives:

•           We aim to expand the farm into different section vis-à-vis hatchery and getting kilns for drying and to also be a one stop shop when it comes to fishes.

 

1.4 Critical Success Factors of the Business are:

1.              Availability of managerial skill

2.              Competence and knowledge of the business risk

3.              Favorable government policy

4.              Assured market

5.              Access to funds (capital)

6.              Strategic location

7.              Good quality of water and fingerlings

 

1.5         Value Proposition.

·                  Our business will be producing healthy table size fish, well packaged and presentable dried fish and high yield fingerlings. Also we will strive to make available table sized catfish all year round in season and out of season.

·                  We will also deliver promptly to farmers who want to source fingerlings from us and ensure constant availability of fishes.

 

1.6          Current Status of business

            Our business is a start-up and we are in the process to register our business while undertaking feasibility study of the business and findings on suppliers of needed items for the business operations. The promoter of the business has also undergone entrepreneurial training to enhance a smooth start-up, successful and sustainable business.

 

Legal requirement

Legal requirement	Budget (N)	Details on frequency & other information
Corporate affairs registration	10,750	Once
Local Gov. permit and licensing	5,000	Yearly
Specific trade associations Catfish farmers association (CAFAN)	1000	Once
Total	16,750

 

  

1.7       Contribution to Local and National Economy

You and your family: - The business will provide alternative source of income without beings dependent on my husband and I will also be a help to others. 

Your employee(s): - Our employees will also be financially independent and will gain the business knowledge to start their own enterprise.

 

Immediate community: - From the success of the business, our immediate community members will also want to go into the business, job opportunity and also training incentives.

State and nation: - As a business we will be paying tax to govt. and therefore increase their revenue base and also reduce unemployment.

 

Chapter Two

MARKETING PLAN

2.1       DESCRIPTIONS OF PRODUCT(S) OR SERVICE(S):

Your Business Name is into the production of healthy Cat fish, sales of dried catfish, Sales of frozen cat fish and training services.

 

2.2 Product/Service Packaging/Delivery

Our products are mainly healthy Cat fish, sales of dried catfish, Sales of frozen cat fish and training services.

Service delivery of our products will be available for those who buy in large quantity.

 

2.3 Cat Fish;

We offer life and healthy Cat fish to our targeted customers. Some are sold as dried and packaged Cat fish and some as frozen cat fish.

 

Chapter Three

3.1 DESCRIPTION OF THE BUSINESS INDUSTRY/ INDUSTRY ANALYSIS     

Fish farming was introduced in Nigeria by the colonial administration as early as 1940. It slated in Lagos as a fisheries organization and later grew to become the Federal fisheries services in the 50s. There were constraints in the beginning because of land and soil problems but with the introduction of mobile fish ponds fish farming became easier.

Presently, it is a highly regarded industry as it provides the major protein requirements in homes whether rich or poor.

There are challenges though in the industry, like the challenge of having good breed of fingerlings, and buying feed at a high price. This would be overcome buy supplementing with our local feed after the first three months in order to cut down cost and have a healthy and good product for our customer, and it would also be profitable to our business as well.

 

Fish farming therefore is the most promising means of increasing fish production to first of all bridge the gap existing between fish demand and supply and supplying protein needs. It generates employment.

 

Potential Challenges in the Business Industry     

·         The first challenge is getting very good breed of fingerlings

·         High cost of fish feed

·         Epileptic power supply

·         Adverse weather conditions

·         Stunted fingerlings

 

The opportunity

We will be having the advantage of supplying catfish all year round and also meeting the nutritional needs of the customer by providing alternative source of protein. We are also going into hatchery because a large percentage of fingerlings into Calabar come from the south-west and Port-Harcourt axis. We will also fill the demand and supply gap.

 

The major players in the livestock industry of the nation’s economy are the Obasanjo Farms Nigerian Limited, Zartech Farms, Agritech farms, Dukes Farms, Farmers giants Nigerian Limited etc.

 

The Nigerian aquaculture industry is one of the largest after south Africa in the continent. It is estimated at 80 to 120 billion naira and is comprised of approximately 180,000mt of Cat fishes in year 2017.

The whitemeats markets segments are; Egg production, broilers meats production, Cat fish production and Tilapia production. Your Business Name is serving the Cat fish market segments.

The potentials for growth in the livestock markets are the; high population density in the country, government bans on importation of poultry and aquaculture produce and the current government moves to diversify the nation’s economy to nature resources sectors and agriculture as major concerns.

           

This is the major opportunity Your Business Name has identified in the industry and capitalizes on to make the products available and affordable for our customer. Also to increase our production capacity to meet the increasing demands of our customer.

 

3.2       TARGET MARKET

• Individual
• Restaurant owners
• Hotel operators
• Church members
• Wholesalers
• Event managers
• Boarding schools
• Fast food operators

 

3.3 Potential challenges in the business industry

1. Adulterated vaccines
2. Lack of high quality disease resistant and high yield breeds
3. Short shelf life of feeds
4. Seasonal feed shortage
5. Epidemic
6. Poor electricity supply

 

CHAPTER FOUR

4.1 COMPETITIVE ANALYSIS

4.2 Customers relationships;

·         Discount on bulk purchase

·         Phone calls and text messages to customers

·         Conducive business environment.

·         Free Delivery Services

The probability for new entrants is a 50:50 approach. The barrier to overcome to enter the market is low. This is because of the high demand for aquaculture products and the supply is poor. This has made it easy for market entrants.

 

CHAPTER FIVE

5.1 SWOT Analysis

 

Strength	Weaknesses
Good knowledge of the business Location of the business Entrepreneurship trainings from TEEP 2018, SSEDC, UNICAL Farms.	New and Untested products Weak brands Small Start up Capital Vast number of illegitimate Cat Fish farms
Opportunities	Threats
Government policies; bans on importation of aquaculture produce. Economy diversification. Threats posed by red meats consumption. High population. Fast growing food industry.	Seasonality Instability in lending rates Collateral for loan Smulgering. Disease outbreak Corruption.

5.2       BUSINESS RISKS

• High mortality rate
• Disease outbreak
• Theft
• Poor preservation facility
• Poor storage of raw materials
• Poor water quality
• Poor breed/parent stock

 

            MITIGATION STRATEGIES

• Good cultural practice / management system
• Fumigations (occasionally)
• Safe storage system
• Disinfectant
• Secure the farm with iron gate protector
• Insurance
• Proper accounting,
• Regular staff salary payment
• Security personnel

 

CHAPTER SIX

6.1 OPERATIONAL PLAN

6.2 DESCRIPTION OF THE LOCATION / FACTORY

Your Business Name is located at Business Address/Location in a leased two plot of land. The location is strategic and is easily accessible. There is power supply, water supply which will be gotten from the public source. The environment is secure and conducive for the business. We adopted the collapsible pond system and later will change to the concrete pond system to check durability.

 

6.3 Cat Fish;

We buy fingerlings from the University of Calabar Farms and culture in our site ponds and are closely monitored and fed for four (4) months and are sold as life or dried/smoked cat fish to our target customers.

The fishes are been fed morning and evenings. Feed of sizes 0.5mm, 1.0mm, 1.5mm and 2.0mm are given to them based on their sizes. The fishes are sorted into different sizes in various tanks to prevent cannibalism. The pond water is changed every three to four days to ensure clean and oxygenated water.

           

Your Business Name is registered with the Corporate Affairs Commissions and is also registered with All Farmers Association of Nigeria, Cross River Chapter and with the Cat Fish Association of Nigeria Cross River State Chapter.

6.4 Key resources;

• Human resources - personnel
• Finance - Capitals asset and working capital
• Equipment and Facilities
• Stocks – Fry and fingerlings
• Raw materials - Feeds and vaccines
• Registrations - CAC, TIN, LGA permits, etc.
• Trainings.

 

6.5 Suppliers;

• Gabty Agric Services.
• Federal Ministry of Agriculture
• Topfeeds.
• Unical Farms

 

6.6 RAW MATERIALS/ CONSUMABLE NEEDED/SUPPLIES

             List of Raw materials

Materials	Description/uses	Key supplier/source
Fingerlings (stock)	Young fingerlings to be nurture into maturity	Fingerlings supplier
Fish feeds – 0.5mm	For fingerlings between 0 - 4 weeks	Feed sellers
Fish feeds – 1.0mm	For fingerlings between 4 - 10weeks	Feed sellers
Fish feed – 1.5mm, 2mm	For Fry between 11 – 20 weeks
Vaccine	For immunity	Vat. Doctors
Water	For drinking and cleaning up	From borehole.

 

 

 

 

 

 

List of Raw Material.

Material	Description	Supplier
Borehole (water)	For the supply of portable well oxygenated water	Odinka
Fingerlings	For opening stock	Andrew in Port Harcourt

 

List of Capital Equipment, description, uses and suppliers.

S/N	Equipment	Description/ uses		Supplier
1	Generator	For pumping water from borehole		EPZ
2	Table	For sorting		Market
3	G.P tank	For storing water		Market
4	Weighing scale		To weigh fishes	Market
5	Mobile ponds		For fish breeding	Lagos
6	Chair		Used for sitting	Market
7	Oven		Drying fish	Market
8	Ponds		Rearing fish	Market
9	Sorting pond		Sorting pond	Market
10	Net and sorter		Picking fish	Market

 

list of Consumables

 

Material	Description	Supplier
Fish feed	For fish feeding	Market
Drugs and vaccines	Booster and antibiotics	Market
Salt	For salt bathing and as disinfectant	Market
Fuel	To run the generator	Filling station
Stationary	Receipt and Records	Market

 

CHAPTER SEVEN

7.1 Marketing Plan

Distribution strategies / sales methods:

Sales in the farm, home delivery, Sales outlets, Retailers, Cash sales

Bank payment and Cheques

In Your Business Name we make our customers aware of our products by holding farm shows, Television and Radio interviews to educate the public on the importance of our new products and how to use it.

We adopt the cost-based pricing strategy. However, we may equally adopt fixed pricing strategy which will be determined by the size and weight of the fish

Discount on bulk purchases and credit facilities for loyal customers will be incentives that will make customers buy from us and not our competitors.

 

Besides, credit facilities will only be given to loyal customers that are civil servants and with integrity to ensure easy repayment schedule and planning.

We reach our customers through; Advertisement, Bulk SMS, Referrals, social media, Hand Bills, Complimentary cards, Farm Signage, Business website and personal contacts, etc.

CHAPTER EIGHT

8.1 ORGANIZATIONAL AND MANAGEMENT PLAN

OWNERSHIP OF THE BUSINESS

Our form of business ownership is sole proprietorship.

We choose this form of business ownership because it is very easy to run and relatively cheap to establish. Quick decision making and easy to maintain             records

 

8.2 PROFILE OF THE PROMOTER

The promoter of Your Business Name is Name of CEO. He is very passionate about agricultural activities which was one of the family’s main stays and is 7years experienced in poultry farming. He has currently under gone entrepreneurship training with the South-South Entrepreneurship Development Centre and a 12 weeks entrepreneurship training with the Tony Elumelu Entrepreneurship programme TEEP for business skills to enhance smooth start-up. He has also attended internship training with the University of Calabar Research and Demonstration Farms for Cat fish and Poultry production, processing and marketing.

 

8.3     DETAILS OF EMPLOYEE

Our management team will consist of a man and a woman for a start.

 

CHAPTER NINE

9. Financial Plan

Your Business Name will generate her revenue from the sales of live Cat fish, Dried Cat fish, frozen cat fish and Trainings.

Dollar is rated at 1$ = N310

Price for cat fish;

A four months Cat fish weights 1kg and above is priced at N600.00 = $ 2.26

The estimated volume for Cat fish sold are; 1400 x 3 periods = 4200

4200 x N600 = N2,520,000.00

Price for Dried Cat fish;

N1400 = $ 4.52

One Dried Cat fish is valued at N1, 400 and 600 is expected to be sold every period. Therefore, 600 x 3 periods = 1800

1800 x N1, 400 = N32,520,000.00

 

Price for frozen cat fish;

One frozen Cat fish is valued at N1, 000 and is expected to be sold every period. Therefore, 500 x 3 period = 1500

1500 x N1000 = N1,500,000.00

Inflation = 11%

Effective Tax rate = 5%

Interest rate = 25%

 

THE TEEP 2018 GRANTS MONEY $5,000 WILL BE USED AS ILLUSTRATED BELOW;

Cat Fish;

ITEMS	DECRISPTION	AMOUNT (N)	AMOUNT $
2 Collapsible ponds	1000 capacity	200,000.00	645.16
2 sorting ponds	500 capacity	100,000.00	322.58
Fingerlings	2000 @ N35 each.	70,000.00	225.80
Top feeds	bags to feed them for 5 months	700,000.00	2258.07
Oven	500 tons per day	234, 000.00	754.84
Refrigerator	500 capacity	155, 000.00	500
TOTAL		1,459,000.00	4706.45

 

We will be embarking on developing a business website for our business. And we will also develop our business mobile application. This will help our enterprise grow technologically and gives up the information and technology platform to maximize profits. Below is the budget;

 

Business Name farm website;

ITEMS	DECRISPTION	AMOUNT (N)	AMOUNT $
Business Website		40,000.00	129.03
Farm mobile application		51,000.00	164.52
TOTAL		91,000.00	293.55

 

 

 

 

CHAPTER TEN

MILESTONES

QUARTERS	DESCRIPTION	BUDGETS (N)	DATES
1	Expand my business by buying 2 additional collapsible ponds and increasing the fingerlings to 2000 population.	650,000.00	Nov to Jan 2018
2	Employ 4 additional staffs; 2 full time and 2 part time that will work in the ponds.	800,000.00	Feb to April 2019
3	Open a farm depot at Uyo metropolis in akwa Ibom State.	1,000,000.00	May to July 2018

 

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