THE FEDERAL POLYTECHNIC ILE-OLUJI ONDO

STATE.

EED 126 [INTRODUCTION TO ENTREPRENEURSHIP]

PROJECT OF COMPOSING A BUSINESS PLAN

(PROPOSAL)

ON

FISH FARMING

FROM

CIVIL ENGINEERING DEPARTMENT (GROUP 4)

OCT, 2021

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A BUSINESS PLAN PROPOSAL ON “FISH FARMING N”
SUBMITTED BY THE STUDENTS BELOW
OTITILOWO ISAIAH O FPI/CVE/20/026

PHILIP TOMIWA T FPI/CVE/20/027

SAMA GIDEON S FPI/CVE/20/028

SANNI AYOMIDE J FPI/CVE/20/029

TAJUDEEN HAMEED O FPI/CVE/20/030

JUDOH PROSPER O FPI/CVE/20/031

YUSUF IBRAHIM ABIODUN FPI/CVE/20/032

IGO WILLIAM I FPI/CVE/20/033

ADEGBOLA ADEYEMI FPI/CVE/20/034

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 TABLE OF CONTENT

CHAPTER ONE

 INTRODUCTION TO FISH FARMING

CHATER TWO

 EXECUTIVE SUMMARY

 VISSION

 MISSION

 GENERAL COMPANY DESCRIPTION

 FINANCIAL PLAN

CHAPTER THREE

 FISH FARMING STARTUP EXPENSES

CHAPTER FOUR

 CONCLUSION

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 CHAPTER ONE
INTRODUCTION TO FISH FARMING
Fish farming refers to the commercial production of fish in an enclosure or, when located in a
body of freshwater or marine water, in an area that is penned off from the surrounding water by
cages or open nets.
A fish farm is similar to a fish hatchery in that both can contain 500,000 and more fish. But, a
fish hatchery is designed to raise the fish only to a young age before they are released into the
wild, usually to bolster the numbers of that species. In contrast, a fish farm is designed to raise
the fish until they are a size and age that makes them the best commercial value. The fish are
ultimately retrieved and sold, typically as whole or processed food.
Fish farming is the most common form of aquaculture, and commonly involves trout, salmon,
tilapia, cod, carp, and catfish. For a species such as cod, whose numbers in the Grand Banks
fishery off the east coast of the Canadian Maritime Provinces plummeted to near zero in the
1970s due to overfishing, and as of 2008 have yet to recover, the cod available from fish farming
represents almost the sole source of the fish in North American markets.
The example of cod is cited as one of the advantages of fish farming. Raising fish under more
controlled conditions that are possible in the wild avoids the problem of overfishing. As well,
because an operation takes up relatively little space, feeding and care of the fish can be done
under more controlled conditions, which is an economic advantage to those who own and run the
facility.
However, fish farming is a controversial practice. For example, on the Canadian west coast, the
farming of salmon typically uses species normally found in the Atlantic Ocean. The escape of
fish to the wild does occur, and has created concern that the presence of the species in an
environment that is unnatural to them could upset the marine ecology. Other concerns of fish
farming are the overcrowding of fish, which can make them more susceptible to disease such as
sea lice, and the use of antibiotics, which can also be released into the natural environment.

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 CHAPTER TWO
EXECUTIVE SUMMARY

Fish farming is a lucrative business; it is also simple and can be started with small capital.
Anyone with a small space and can find a market within a locality can engage in fish farming. In
fact, with as little as N285,000 you can start fish farming. In this business plan, we shall discuss
how you can successfully set up a fish farming business.

Our business plan on fish farming shall begin with the production of catfish but later, tilapia shall
be added. We shall sale fresh initially but later, the introduction of drying and packaging also
follow. Our customers shall be an open market, restaurant. Over time with reasonable
expansion, we shall commence exporting the product when the local market is satisfied. The
farm belongs to me, My Business Name and I would see to the day to day operation of the farm.
We shall in future so expand the business that we can look upon it as something that can sustain
human, since fish will always be consumed by man and there is no way everybody would go into
fish production.

VISION

Towards sustainable growth of the output of fisheries industry through increase in productivity
and export-oriented.
MISSION
To be self-employed, create employment opportunities for others, provide protein to the
populace and help save some foreign exchange for Nigeria
Accelerate growth of fisheries industry output through use of high technology, increase
productivity as well as targeting the export market by increasing local investment and foreign
direct investment.

Company Goals and Objectives: Our goal is to have a healthy, successful company that is a
leader in customer service and that has a loyal customer following. While our Objective will be
to have our dried fish in every pot of soup in Nigeria.

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Business Philosophy: To earn a good living from what I offer to my customers, while they
continue desiring that we serve them always.

GENERAL COMPANY DESCRIPTION

Our business will basically be hinged on preparing the site, acquiring two mobile ponds, fertilize
the ponds within say 2 weeks, buy 500 fingerlings for each of the ponds, feed them two times a
day till maturity at 6 months and then sale off as point-and-kill or as dried fish or both. Having
sold off, we stock again and repeat the process of brood and sale. We shall also go into hatching
over time.

Target Customer: Since there are no religious, cultural or demographic barriers on the
consumption of catfish, our customers shall be the open market, restaurants and grocery shops.
Over time with reasonable expansion, we shall commence exporting the product when the local
market is satisfied or just to earn foreign currency.

Legal ownership: for now, our Legal form of ownership is Sole proprietorship and is subject to
available cash but, we are open to other business structures like Partnership, Limited liability,
and even Public Liability as our final destination.

Customer Profile: It is extremely difficult to determine the customer profile of people that will
acquire the fish produced by us because fish is consumed by all. The Company intends to do
business with farmer’s markets, fishery coops, and fish/seafood wholesalers that will acquire the
Company’s inventories of fish.
FUNCTIONS, ROLES &RESPONSIBILITIES
 Managing the fisheries resources in accordance with Fisheries Acts and Regulations
 Fisheries stock assessment, planning and management
 Conservation of fisheries resources
 Development of rational and sustainable aquaculture industry
 Product development in seafood
 Implementation of food safety and quality control programme in the seafood processing
industry

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 Providing technical and support services to the fisheries industry

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 CHAPTER THREE

FISH FARMING STARTUP EXPENSES

The fish farming project would take approximately N1,500,000.00 (One Million Five Hundred
Thousand Naira only) to be deployed as follows: please see the Startup Expenses and
Capitalization.

PRICE QTY AMOUNT

10 X 10 feet Mobile Ponds N 40,000.0 2 N 80,000.00
Fingerlings N 40.00 1,000 N 40,000.00
Feed N 400.00 1,000 N 400,000.00
Pelletizing Machine N 70,000.00 1 N 70,000.00
Dryer N 60,000.00 1 N 60,000.00
Power Generator N 160,000.00 1 N 160,000.00
Power Generation N 80,000.00 1 N 80,000.00
Salaries N 15,000.00 24 N 360,000.00
Contingencies N 178,000.00 1 N 178,000.00
TOTAL 1,428,000.00

Figure 1.

The pelletizing machine and dryer would enable me to prepare my own feed which would be
cheaper in the long run, thereby increasing my profit. This is because imported fish feed is
expensive and would reduce the profit margin if depended upon throughout the six months grow-
out period.

FINANCIAL PLAN

Our financial plan consists of a 12-month cash-flow projection and a break-even calculation.
Together they constitute a reasonable estimate of our company’s financial future. More
importantly, we hereby present the financial insight into the inner financial workings of our
company.

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FISH FARMING MARKETING PLAN

The Fishery’s marketing operations will be minimal as once the Company solidifies ongoing
relationship with fishery coops and wholesalers, very little marketing will be required to
maintain these relationships. At the onset of operation, we intend to aggressively develop
relationship with local and regional fishery coops that will assist the Fishery in maintaining
stringent pricing (through forward and future contacts) so that the Fishery always has a
predictable stream of income. However, in the future, we might seek to brand certain fish items
that we produce. In this instance, the Company will hire a marketing/advertising firm to properly
position the Company’s image and brand so that it can directly sell packaged fish to major
groceries, supermarkets, farmer’s markets, and select retailers.

This Fishery intends to maintain an extensive marketing campaign that will ensure maximum
visibility for the business in its targeted market. Below is an overview of the marketing strategies
and objectives of the Fishery.

MARKETING OBJECTIVES

We intend developing relationship with major groceries and fish/seafood wholesalers that will
acquire bulk inventories from us and polish ongoing purchase order relationship with
cooperatives throughout the target market.

Pricing

Our pricing shall be as in the table below:

AGE in months PRICE (N)

Fingerling up to 1 30
Juvenile 2 50
Table Size 6 1000 per kg
Brood Stock 8 and above 2500 per kg

The price of various categories of our fish shall be average prices and compete on quality and
service. Our intended customers really make their purchase decisions mostly on price, so we are

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better off remaining average. Our credit policy shall be cash and carry so that our customers
would always come with their money.

ECONOMICS

As stated in the executive summary, we intend to develop the Fishery as a multi-fish producing
farm that will spawn, grow, and distribute its fish to seafood wholesalers throughout the target
market. We already have the potential land, but the equipment that will be used for the Fishery’s
operations would be sourced. Additionally, it should be noted that we will join a fishery
cooperative that will assist with the distribution and sale of the fish.

Facts about our industry:

 The size of the market is as huge as the population of Nigeria because everybody eats
catfish but, the only problem is affordability because disposable income is on the decline.
 Our percentage share of this market is as good as 0 because 1,000 pieces of catfish per
year means nothing to Nigerian market. The important thing is that we shall finish selling
output and continue to grow.
 Current demand in target market is that of the sellers’ market because total supply is far
below demand.
 Catfish production would grow to such a time when fish processors would also entre the
scene. The little that is produced now is just not enough for processing and packaging, it
is just consumed.
 Growth potential and opportunity for a business of our size is limitless.
 However, we are faced with the under listed barriers of entry into this market:
o High capital costs
o High production costs
o High marketing costs
o Consumer brand recognition
o Training and skills
o Unique technology and patents
o Unions
o Shipping costs
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  To surmount the above barriers however, we have of course plunged into the business
and beginning to eliminate them one after the other from our comfort zone.
 Apart from natural disaster, we do not foresee any adverse effect on our business as a
result of change in technology since we are currently almost manual in our operations.
Change in government regulations most likely would favour us as it must be ban on
imported fish. There is no way change in the economy, no matter how bad, would affect
total rejection of catfish by man.

FEATURES AND BENEFITS

Fingerling production shall be within one-month order. This will enable us produce and supply
any number demanded by our customers. We shall not be selling the last grade of fingerlings to
our customers rather, we will grow them ourselves for dried fish purposes only. We must use
daphnia or artemia to raise our fingerlings, for 2 weeks at least, to enable our fish longevity.
What we have said so far also apply to our juvenile, which are grown with balanced rations.
When you feed animals regularly with balanced rations, they grow out having more density and
are testier because they had all they needed. Our table size shall be after 6 months, weighing
between 1 and 3kg. As for the brood stock, we must make sure they stay up to 8 months and their
eggs brown, before declaring them for sale.

Apart from the testy and palatable aroma and sensation we derive from catfish in our food, the
importance of fish protein and oil in our diet and our body system can never be over emphasized.
Please consult a medical doctor for the importance of sea food to us.

In doing our business, we will be contributing to the reduction of unemployment by employing

as much as will be profitable to us.

Our after-sale services will include delivery, service contracts, support for processing, follow-up
on startup fish farms, and refund policy.

Competitive Analysis would have been necessary had it been that fish farming business has
become institutionalized in Nigeria, but the reverse is the case.

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STRATEGY

Our strategy shall be phone call and messaging and personal contacts to inform our readiness to
sale at maturity and average prices.

DISTRIBUTION CHANNELS

Our distribution channel shall be retail for families, wholesale for resellers, agents and
independent representatives who might want some commission are also welcome.

OPERATIONAL PLAN

The daily operation of the business is as simple as manually feeding the fish twice a day,
between 6am and 8am and 5pm and 7pm. While doing this we make sure that ¼ volume of water
flows out and is replaced every day.

LEGAL ENVIRONMENT

We shall register our business with CAC (Corporate Affairs Commission) and affiliate with
appropriate cooperative in Umuahia South LGA. Affiliation with NASSI (Nigerian Association
of Small Scale Industrialists) and AFAN (All Farmers Association of Nigeria) will be also
pursued. There is no law prohibiting fish farming and so no permit is required to practice. The
loan amount shall be insured by NAIC (Nigerian Agricultural Insurance Corporation).

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 CHAPTER FOUR
CONCLUSION
As in other parts of the world, freshwater aquaculture is of major importance to these countries.

It contributes to higher fish production, increasing supplies of animal protein and generation of

employment, and is also a means of improving farm income. It has been recognized that

freshwater aquaculture can make a significant contribution to bridging the widening gap between

demand for and supply of fishery products in Asia, in the face of declining capture fisheries

production and growing populations. It is therefore vital for these countries to review and

formulate policies for the sustainable development of aquaculture. These policies should relate to

the use of natural resources, research, inputs and outputs and pricing, and they should also be

able to address the problems in marketing, credit, trade, investment and exchange rates.

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 REFERENCES

GOMUO KELECHI (2019)

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