[Your Name]

[Your Address]

[City, State, Zip Code]

[Date]

[Recipient Name]

[Recipient Address]

[City, State, Zip Code]

Dear [Recipient Name],

I am writing to present a business proposal for a catfish farming venture in Nigeria. With the increasing
demand for fish in Nigeria and the potential for profitable returns, I believe that catfish farming is an
ideal investment opportunity.

Overview of the Opportunity:

- Nigeria is one of the largest consumers of fish in Africa, and the demand continues to grow.

- Catfish is one of the most popular and sought-after fish in Nigeria, making it a lucrative market to tap
into.

- Catfish farming is a sustainable and profitable business that can provide a consistent source of income.

Business Plan:

- We aim to start a catfish farm in [Location] with a capacity to produce [Number] of catfish annually.

- Our farm will be equipped with state-of-the-art facilities and technology to ensure optimal growth and
production.

- We will focus on sustainable and environmentally friendly farming practices to ensure the highest
quality and healthy fish.
Marketing Strategy:

- We will target local markets, supermarkets, restaurants, and wholesalers to sell our catfish.

- We will establish strategic partnerships with suppliers and distributors to ensure a steady supply chain.

- We will also leverage digital and social media platforms to promote our products and reach a wider
audience.

Financial Projections:

- We estimate an initial investment of [Amount] for the establishment of the catfish farm, including land,
infrastructure, and operational costs.

- We project a net profit of [Amount] in the first year, with steady growth in subsequent years.

I am seeking [Amount] in funding to kickstart this venture and bring our vision to reality. The investment
will go towards land acquisition, construction, equipment, and initial operating costs.

I would be thrilled to discuss this proposal with you in more detail, and I am open to answering any
questions you may have. Thank you for considering this exciting opportunity.

Sincerely,

[Your Name]

Liveandwingit
Business, Money, Marketing

BlogBusiness and Digital marketing

How To Start A Fish Pond Business In Nigeria

by Demi October 5, 2022

Post Views: 675

Looking for a resource or guide on “How To Start A Fish Pond Business In Nigeria”?

Read on..

This article comes with a free business plan outline for a Fish farming Business in Nigeria.

How To Start A Fish Pond Business In Nigeria

Why Fish Farming?

Fish farming is the fastest-growing animal husbandry industry in Nigeria and many parts of the world. In
most parts of Africa, the most cultured species is Tilapia and Catfish. In Nigeria, the demand for fish is
2.66 million metric tonnes and only 1.4 million metric tonnes is available of which the country imports
over 500 000 mt annually. However, our focus tonight will be on Catfish as it is the easiest fish species to
raise commercially by every startup.

Basics Requirements in Catfish Production

Learning How To Start A Fish Pond Business In Nigeria, The requirements for rearing African catfish
include;

Water: high quality, non-polluted water supply.

Good Parent Stock/Broodstock: selected broodfish of known origin for fast growth.

Water chemistry monitoring/test-kits.

Management: be a good manager of a management plan.

Recordkeeping.

Business plan.

Marketing strategy.

However, out of all the basic requirements, the most important is Water. Catfish can survive more than
7 days without eating, but cannot survive in bad water with poor oxygen for 30 minutes. That our water
is looking clean does not mean the water is healthy. That is why it is important to do your water test to
protect your fish water from being contaminated.

Catfish Value Chain and Phases of Production

Catfish has several stages of production, namely;

Hatchery: this is the stage at which we collect eggs and sperm from the broodstock to hatch new fishes
called Fries.

Fingerling Production: This is the raising of catfish nursery from fries to fingerlings (usually 6 weeks).

Melange Production: This is the raising of catfish from fingerlings to three months in which the fish will
be at an average weight size of 300-400g. At this stage, it is called mélange.

Table Size Production: It is the raising of catfish from fingerlings to an average weight size of 500–700g,
usually from 4 to 5 months from fingerlings.

Grow-out stage: This is the raising of catfish from fingerlings to an average size of 1kg upward. At this
stage, the fishes are in their bigger sizes.

Broodstock Production: This is the raising of catfish for the specific purpose of becoming a parent stock
for the hatchery. They are raised for one year plus.
Processed Catfish: This is the aspect of processing catfish through the smoking kiln for human
consumption. It is the addition of value to the fish.

Pond Setup

As mentioned earlier, there are various pond systems of rearing catfish. However, the most common
types used in Nigeria and easy to control are;

Plastic Pond

Tarpaulin Pond

Concrete Pond

Earthen Pond

You choose your pond system when you want to Start A Fish Pond Business In Nigeria based on the
phase of production you want to focus on as each type of pond system performs better under different
production phases. For instance, you can’t do hatchery in an earthen pond. Likewise, growth production
is suitable in an earthen pond.

Also, you will need expert advice when choosing your pond as there are other factors needed to be
considered but are peculiar to every individual.

Setting up the ponds is not difficult. The volume of space you have available will determine the method
and cost of your pond construction.

Catfish Breeding

Water: Having selected your water source either through a borehole or stream, ensure the water is
regularly available and not being polluted from the source. Change your water as often as possible.
Within 24-48 hours interval, based on the production phase you are involved in.

Feeding: Catfish feed can either be imported or locally produced. We have various imported and local
feeds in the market. Fish feeds are in pellets ranging from 0.1 mm to 9 mm in size.
Fingerlings eat 2 mm

Melange 4-6 mm

Table size 6 mm

Grow out 9 mm

New Aller Aqua feeding chart required for 1000 post fingerlings to table-size (4 months and one week)

1.3 mm 3 kg 7 days

2 mm 2 bags 14 days

3 mm 4 bags 16 days

4.5 mm 11 bags 30 days

6 mm 20 bags 40 days

8 mm 30 bags 20 days

Total: 67 bags+3 kg of 1.3 mm(starter pack feed)

Average weight:1.4 kg

Catfish Farming Systems

There major systems of rearing catfish include;

Recycling system.

Flow-through.

Floating cage system.

Earthen pond.

Concrete and Tarpaulin pond/Household system.

Feeds and feeding in catfish farming is an important aspect that must be understood properly in order to
achieve the optimum result of your investment, but first what is a feed?

Feed or fish feed is anything capable of being eaten, digested and utilised for growth and development
of the body tissue. It contains nutrients such as protein, minerals, carbohydrate, fat and oil, vitamins and
water. Literally, as we humans need balanced diet food to grow and glow, the same is true for fish.

Fish feeds and feeding are so important that it takes about 60-70% of the total production cost,
therefore, if we can handle our feeds and feeding well, surely we are going to break even and make a
profit. Catfish like to eat very early in the morning and evening. Do not feed them expired or mouldy
feed.

The ability of fish to attain certain weight at a particular period of time depends mainly on feeding,
stocking 1001 number of baby fish (fingerlings) is not hard since they are cheap to buy but the ability
and capability to feed them with good feeds at the right time and appropriately till maturity is a thing we
should never joke with.

The feed to be used when you want to Start A Fish Pond Business In Nigeria must be cheap and also
should make the fish grow quickly, with the right quantity at the lowest possible cost.
Types of Feeds

Floating Feed: is water-stable. This means it does not sink but is often expensive. It allows the farmer to
see the response of fish to the feed. This type of feed is in different sizes ranging from 0.2-6.5 mm,
depending on the size and age of the fish.

Sinking Feed: it is generally referred to as local sinking pellet, not as expensive as the floating feed. It
easily dissolves in water, and it is also cheap.

Supplementary Feed: it includes maggot, poultry waste, fish offal, brewery waste, etc. It is used to
supplement the main feeds. It can be given at any period of the day, it helps to prevent cannibalism.

NB:

Fish feeds must be stored in a cool dry place. Wet food such as maggot, fish offal/ poultry waste must be
refrigerated or should be processed by boiling or by sun-drying to reduce the moisture content. This will
inhibit the growth of spoilage microbes.

Also, try not to mix floating and sinking feed together. And when changing fish feeds from floating to
sinking, use 70:30 i.e 70% of new feed and 30% of the old feed. Economically it is not advisable or wise,
to use floating feed throughout the rearing period but rather change the feed to sinking when the fish
reaches the post-juvenile stage.

Major Feed Ingredients in Fish Feed

Conventional.Maize meal.

a. Soybean meal.

b. Groundnut cake meal.

c. Blood meal.

d. Vitamin and mineral premix.

e. Bone meal.

f. Oyster shell.

Non-conventional.

a. Cassava rubber.

b. Offal.

c. Hatchery waste.

Feed Formulation

Feed formulation is the combination of two or more ingredients with known chemical composition to
meet the nutrient requirements (needs) of fish at a particular stage of production.

Methods of feed formulation.

A. Pearson square method.

B. Trail and error method.

C. Computer method.
NB:

Check your formula (feed formulation) before going to the feed mill.

Be sure that the ingredients are weighed correctly in your presence.

Check the ingredients properly whether they are not mouldy, infested, or stale.

Reject infested feed ingredients.

Do not leave your feed with the feed miller.

Use clean sacks for your feed.

Feeding

Fish could be fed twice or thrice in a day. Fish should be given feed in the morning and evening. The
farmer should be consistent and stick to a particular time of feeding.

NB:

Do not feed when the weather is hot.

Avoid improper storage of feed.

Do not feed the fish with dung, excreta or faeces

Do not overfeed or underfeed your fish.

Feed at regular time.

Harvesting

Harvesting when you want to Start A Fish Pond Business In Nigeria is done when your fish reaches
maturity or has reached your desired size or stage. This can be Fingerling, Juvenile, Jumbo, Smokeable or
Table size.
Harvesting techniques can either be Partial harvesting or Total harvesting.

A. Partial harvesting is done during sampling or if there is a need to check the health status of a fish, for
lab analysis, or during treatment. The water is not totally drained and not all the fish will be harvested.

B. Total harvesting is done when the farmer wants to sell or transfer the fish from a pond to another
pond or tank. Here, the water will be completely drained and all the fish will be harvested.

There are different types of equipment used in fish farming, but harvesting equipment in fish farming is
known as fishing gear. Examples are Dragnet, Cast net, Scoop net, Hook and line etc. It is advisable to
harvest only during the cool period of the day. Fishing gear that will injure the fish should not be used
e.g cast net, hook line, set net spear arrow and the likes. Do not keep harvested fish under the sun, heap
the fish, or transport harvested fish during hot weather.

Processing/Preservation

Fish processing/smoking is also known as fish preservation. It is the mechanism used in increasing the
shelf life of the fish. It is highly perishable as it has over 60% moisture content. It tends to spoil
immediately after death when not processed or preserved. Fish can be preserved by adding salt (2-3kg)
to 1kg of fish in an airtight container or iced, or refrigerated. Also, fish can be processed into Smoked
fish, Canned fish, Sun-dried fish etc The smoked fish business is one of the most lucrative businesses in
Nigeria. Even if you do not know how to hatch fish seed or have a pond, you can still venture into fish
smoking business with just a little start-up capital. It is highly lucrative.

Marketing

As of today, the demand for fish and fish products surpasses its supply. Almost everybody eats fish
either dried or fresh, compared to other products such as pork and beef that are being affected by
religious and medical constraints, respectively.
Fish has Omega-3 Fatty Acids, which is highly essential to the body and it can be sold to people of every
kind in hotels, churches, at conferences, meetings, banks, individual door-to-door delivery etc

Now that you know How To Start A Fish Pond Business In Nigeria, are you ready to get a business plan?

How To Download The Complete Catfish Farming Business Plan In Nigeria PDF and Doc

Above is a part of the catfish business plan in Nigerian. If you want the complete catfish farming
business plan with 3 years of financial analysis, follow the procedures to download it.

Pay the sum of N8000 (Eight thousand naira only) to the account detail below:

Bank: GTBank

Name: Oyewole Abidemi (I am putting my name and not our company account so you know we are real
people and you can trust us)

Ac/No: 0238933625

Type: Saving

P.S: We can also tailor the business plan to your name, business size, capital requirements, and more to
fit your direct needs.

Thereafter, send us your email address through text message to +234 701 754 2853. The text must
contain the title of the business plan you want and also your email address. Immediately after the
confirmation of your payment, we will send the ginger business plan in Nigeria to your email address
where you can easily download it.

HOW TO START A FISH POND BUSINESS IN NIGERIA

0 comment

DEMI
Dr. Abi Demi is a skilled technical writer and author with specialties in the martech and fintech space.
Featured on Tekedia, Coin Review, Business Insider, Fintechna, Cryptocoin.news, Date 360 and several
other sterling online publications, Demi is an astute technical writer that specializes in finance,
marketing and technology - with over 500 published pieces across the internet ecosystem. Contact Abi
Demi - contactdemithebrand@gmail.com

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1. EXECUTIVE SUMMARY

Majesty of Justice Farms catfish business will be established to meet the fish demand in

the community. It will be located in Damagasa, Gudu district, Abuja. The main

economic significant of the business is to contribute towards narrowing down the fish

demand-supply gap deficit in Nigeria as well as the supply of proteins and micro

nutrients for feeding the teeming population FCT Abuja, North Central and Nigeria at
large.

The business would be managed by the Proprietor. He is experienced in the field of fish

farming and have managed different businesses.

The Fish Industry is a lucrative business as the demand for fish in the country is

growing geometrically, the opportunity to expand is nccessary because of the growing

demand for fish and due to some health benefits attached to consumption of fish as

compared to consumption of meat. With our dominance, and being the only and

pioncering fish farm in this locality, we would flood the whole market with our fish.

The business will be a sole proprietorship with the proprietor required to contribute

capital and also sourced for credit facilities.

The risk of the business is mainly getting a market and we have already identified our

target market. The cost benefit analysis of this plan shows that in the startup year, with

12,000 fingerlings in stock and projected sales of11,700 adult fish in one circle which

is half a year, we would make N7,020,000. This implies that about N14,040,000 is

realizable annually for two (2) production cycle which indicates that the project is very

much feasible, viable and very much profitable and as such worth investing.

2. INDUSTRY ANALYSIS

The agricultural industry of which Fish Aquaculture business is a subset of is no

doubt among the leading industry in most countries of the world; it is the industry that

produces fish for the populace.

Because of the significant role the agriculture sector plays, the government of most

countries ensures that they go all the way to subsidize seedlings, fertilizers, and

farming implements and machinery for farmers and also encourage entrepreneurs to

go into commercial farming (fish farming inclusive).

The Fish Aquaculture industry comprises of businesses that farm aquatic animals or
plants in controlled aquatic environments. Businesses in this industry make use of

some form of intervention in the rearing process to enhance production, such as

holding in captivity and protecting from predators, pests and disease.

It is important to state that this industry does not including the fishing and harvesting

of wild fish and shellfish especially on the high sea.

The fish industry invol ves the cultivation and marketing of fish in a controlled

cnvironment for all or part of their life cycle. The catfish industry in Nigeria is one of

the fastest growing segments of the agriculture fish market today. The growth potential

for the catfish market is at its strongest level ever. The demand for the. Per capita consumption

of fish in Nigeria has increased geometrically. These increases in demand are stressing

the world's natural fisheries, which are generally considered to be at or near their

maximum sustainable yield, thus increasing the demand for the catfish raised in

aquaculture facilities. Not to mention the increasing demand in our society for locally

grown products.

Growth Rate, Industry Size, Opportunity and Sales Projection

The demand for fish according to the federal ministry of agricultural was 2.7 million

metric tons in 2019 while domestic production was 0.8 million metric tons. The

Nigerian Federal Ministry of Agricultural estimates that the demand for fish in the

nation is projected to grow from its current demand by 30%.

This deficit was partly augmented by massive importation of fish of about 1.9 metric

tons. This is a big drawback on our scarce foreign exchange. This still left a huge deficit

of 1.9 metric tons, hence the concerted effort to ensure self-sufficiency in fish

production through aquaculture in Nigeria. The demand for Fish in the country is
currently estimated at about 3.51 million metric tons annually, as against the local

annual production of just 1.04 million metric tons, giving a demand-supply gap of

about 2.47 million metric tons. It is very clear that the demand is far higher than supply.

4 Nature of Participants

The participants in this industry ranges from other local farming mainly in the

south-south, south cast, north East region of this country and also importers of the

product. The participants of this industry are all after which supply type would bring

profit.

Industry Structure

The Nigerian fishing industry comprises of three major sub sectors namely the artisanal.

industrial and aquaculture. The awareness on the potential of aquaculture to contribute

to domestic fish production has continued to increase in the country. This stems from

the need to meet the much-needed fish for domestic production and export. Fish species

which are commonly cultured include Tilapia spp, Heterobranchusbodorsalis,

Clariasgariepinus, Mugiespp, Chrysichthysnigrodigitatus, Heterotisniloticus,

Ophioce-phalus obscure, Cyprinuscarpio and Megalospp. Fish culture is done in

enclosures such as tanks. The aquaculture sub sector contributes between 0.5% and 1%

to Nigeria's domestic fish production

o Key Success Factor

DWe are the only fish farm in Damagasa which provides us with the avenue to control

the market, and being the only fish farm we will enjoy monopoly.

D The growing population is another major factor because more people are coming

ranging from civil servants to business men and women, investors and people from all
part of the country.

Industry Trends

The demand for catfish is non-seasonal commodity. There are no up and downtrends in

this industry as there is always demand for catfish. Demands even goes higher than

normal during festive periods but they are no periods when demand is below normal as

even during fasting periods, at evening time of break, people would also come to buy to

break their fast.

3. COMPANY DESCRIPTION

The company is a new company which was recently Registered with The Corporate

Affairs Commission

The idea for this business plan emanated from the desire to secure loan to further

expand the operation of the intended business of Catfish farming.

Our Goals

To remain pioneers in the fish farm business and to further strengthen our

leading position.

To increase the production of our product (Catfish).

To lay emphasis on the vertical integration of the production and to achieve

added value.

To increase productivity and efficiency to the benefit.

To establish long-term planning for the benefit of the consumers and make

more profit.

0 To successfully meet the challenges and demands of the domestic market.

To seek transparency in the structure, operation and production of the

Company.
wholesalers and individual buyers to buy from us until we break the chain of buying

imported fish. We intend to achieve this as we already have new customers and market

demand, lower prices (through flowing on breakeven for the first periods of sale),

aggressive promotion and distribution.

Opportunity or Problem in the Market to be Addressed

Fish remains the most acceptable and healthy source ofprotein for human consumption,

but this essential product is not readily available in our local content to address the

demand of our ever increasing population, hence the continuous importation of frozen

fish to make up for the shortfall, but still the gap in demand and supply keeps widening.

giving rise to high cost of purchase and denial of fish in most homes because they

cannot afford it. Rampant cases of goiter (sickness due to lack of iodine) is been

recorded inour hospitals in recent times due to the scarcity of the main source ofiodine,

fish in most homes. This is asocial and economic problem I felt should not be left to the

Government alone.

> Our Pricing Strategy

Some of the factors that will help you sell your farm produce at the right price that

will guarantee that you make profits is dependent on your strategy while some of the

factors are beyond your control. For example, if the climatic condition is unfavorable

and if there is natural disaster in the location where you have your catfish farm, then it

will directly affect the prices of your fish.

Over and above, if you want to get the right pricing for your catfish, then you should

ensure that you choose a good location for the catfish farm, choose a good breed that

will guarantee bountiful harvest, cut the cost of running your catfish farm to the barest

minimum and of course try as much as possible to attract buyers to your catfish farm
as against taking your catfish to the market to source for buyers; with this, you would

have successfully eliminate the cost of transporting the goods to the market and other

logistics.

We are quite aware that one of the casiest means of penetrating the market and

acquiring loads of customers for all our catfishes is to sell them at competitive prices

hence we will do all we can to ensure that the prices of our fish and seafood are going

to be what other catfish farmers would look towards beating.

One thing is certain; the nature of catfish farming business makes it possible for

catfish farmers to place prices for their catfish based on their discretion without

* Target Market

With the location of our business in North Central, FCT Abuja, Gudu District and

particularly Damagasa to be specific, we hope to enjoy huge patronage of the large

population here.

Below is a list of the people and business that we will market our catfish to:

• Households

Individuals

Hotels

Restaurants

. Fast food eateries

Agriculture merchants
We are planning to meet a production capacity of 2,700 catfish per month. We would

make effort to contact cold room buyers within, and preservation through drying is also

an option we are planning for. We are also planning to reach out to industrial users that

utilize the fish for fish meal production and other products. Having carried out our

feasibility analysis and research on our target market and location, we have seen that

basket load of tomatoes thrown away at the end of market day but fish is one product

that is never sufficient for sale and here are adequate preservation processes available.

> Buying Behavior

As a new business that is just starting, also considering the location of our business, we

will be selling basically on cash but might consider giving eredits to individual who

purchase in large quantity either for consumption or resale.

SWOT Analysis

Majesty of Justice Farms do not intend to launch out with trial and error hence the

need to conduct a proper SWOT analysis.

We know that if we get it right from the onset, we would have succeeded in creating

the foundation that will help us build a standard catfish farming company that will

favorably compete with leading players in the Fish and Seafood Aquaculture industry

in the North Central and in the rest part of Nigeria.

A SWOT analysis was conducted for Majesty of Justice Farms. Here is a summary

from the result of the SWOT analysis;

• Strength:

Our strength as catfish farmer is the fact that we have healthy relationships with loads

of major players (agriculture merchants) in the industry; both suppliers of fish, feeds
and medications and buyers of catfish within and outside Gudu District.

We acquire some of the latest fish farming tools and equipment that will help us raise

and produce catfish in commercial quantities with less stress. Aside from our

relationship (network) and cquipment, we can confidently boast that we have some

the most experienced hands in our payroll.

• Weakness:

Our weakness could be that we are a new catfish farmer, and perhaps it might take us

sometime to attract big time customers in the industry. We are aware of this and from

our projection will overcome this weakness with time and turn it to a major advantage

for the business.

Opportunities:

The opportunities that are available to us as a standard and world class catfish

farmers cannot be quantified, we know that there are lots of households, and

businesses such as hotels and fast food restaurants that can't do without daily supply

of catfish. We are well positioned to take advantage of this opportunity

Threat:

Some of the threats and challenges that we are likely going to face when we start our

own catfish farming are global economic downturn that can impact negatively on

houschold spending, bad weather cum natural disasters (draught, epidemics),

unfavorable government policies and the arrival of a competitor within same location.

There is hardly anything you can do as regards this threats and challenges other than

to be optimistic that things will continue to work for your good.

o Competitor's Analysis

Our main competitor in this fish farming business is the importers of frozen fish. From

our analysis, the cost per kilogram of frozen fish, popularly called ice-fish is N8O0, to
achieve this, weighing three units which give a kilogram of and a unit of that size of fish

bought for N300. Currently, the catfish is sold to main distributors at N600 per

kilogram, and it is retailed at N700 per kilogram, this makes it reasonably cheaper,

survey data has shown that the catfish is preferred to the frozen ice-fish in taste and

nutritional value. For other competitors in the catfish market, we have a considerable

advantage, being that fish farming is our passion and our farm is situated right within

reach and the market premises which makes supervision easier and effective. The

business being a sole proprietorship, it is the owner that will provide all the factors for

the production as land, the location and climate of the area is very suitable for fish

production. The business has relatively low overhead expenses with few staff presently

to match current production capacity.

< Benefits to Clients

Most children that grow with low protein intake end up malnourished and low

intelligent quotient. Economically, the continuous importation of frozen fish to the

country reduces our GDP, and thus reduces the national income. Also, the ever

increasing rate of unemployment in the country is truly becoming worrisome to the

Government and well-meaning Nigerians.

Like most entrepreneurs, the goal of the fish farm business is for profit, but the

underlying benefits cannot be overemphasized, from putting more fish into the system,

thereby increasing the chance of more source of protein in the society at affordable rate

to reduction of unemployment rate and increase in national income, taxes are paid and

wealth are distributed.

5. ESTIMATED ANNUAL SALES AND MARKET SHARE.

Total annual production

Market Target:

Weeks Fish Supplied to Market

2 Cycles. As it takes 6 months to

WK 27

complete each cycle and our

WK52

product supplied to the market

Amount of Fish to be sold per 11,700 Pes per Cycle

23,400 Pcs

year

Unit Price

N600

N600

N7,020,000 Per Cycle

N14,040,000

Total Annual Sales

Inputs Required During the Year:

Fingerlings

12,000 Pcs

24.000Pcs

Feeds

196 Bags

392 Bags
Operating Cost:

N360,000 Per Cycle

Fingerlings @ N30 each

N720,000

1 month Feeds 6 bags @ N9,500 N57,000

NI14,000

per bag

2nd month Feeds 30 bags @N285,000

570,000

N9,500 per bag

3rd month Feeds 40 bags @N228,000

456,000

N5,700 per bag

4lh month Feeds 40 bags @NI72,000

344,000

N4,300 per bag

şth month Feeds 40 bags @NI72,000

344,000

N4.300 per bag

6 month Feeds 40 bags @ N168,000

336.000

N4.200 per bag

1,555.200

Labour

3.110,400
Chemicals

150,000

300,000

Net

7,000

14,000

Miscellaneous expenses

500,000

1,000,000

N7,308,400

Total Operating Cost

N3,654,200 Per Cycle

N6,731,600

Returns

N3,365,800 Per Cycle

6. REVENUE DRIVERS AND THE PROFIT MARGINS

The end product of fish farm is the grown up (Adult) fish for sale in the market. Unlike

poultry farming or other farms where you can have other bye products like the animal

dung, fish have no such bye products which you can also sale for profit.

Our revenue driver, would be the sale of the grown up or adult fish to the market. The

revenue to be raised here from this sale is high if we are able to work hard and ensure

our fish are alive, healthy and well feed and reach the market desired size. When we

buy a fingerling at the cost of N30, after the growth cycle of 6 months, the fish would be
sold in the market for about N600 -N700, it's a big revenue driver for us. So we have to

work hard so that this is achieved.

Fixed and Variable Cost

* Fixed cost for these early periods are as follows:

Tax

• Depreciation

Variable cost for these carly periods are as follows:

Feeds

. Seed (Fingerlings)

Fuel

• Electricity

Chemicals

Labour Cost

7. START UP COST

Acquiring Land

a. We already have already acquired vast land which will be used for the farm.

b. Fencing of Farm

N300,000

N300,000

TOTAL

ii.

POND CONSTRUCTION:
a. For start up, The firm already have Four (4) very big concrete ponds, each to

carry 3,000 fishes.

N450,000

b. Cost of Borehole Drilling (Water Source)

c. Cost of pump machine to pump water to Overhead Tank

N60,000

d. Cost of Pond Treatment

N60,000

N570,000

TOTAL

Fingerlings

a. Cost of High breed Fingerlings (N30each X 12000X 2)

N720,000

N2,164.000

b. Cost of Feeds

N2,884,000

TOTAL

Feeding Equipment

N120,000

iv.

NI20,000

V. Harvesting Equipment

Equipment for Maintenance, Monitoring and Repair

N100,000

vi
N100,000

Other Facilities

Vii.

vi. Labour (8 Staff) @ 32,400 each for 12 month

N3,110,400

N7,304,400

TOTAL START UP COST

Required Startup Capital

The required startup capital is Seven Million, Three hundred and Four Thousand, Four

hundred Naira (N7,304,400.00k) only

> Loan Needed

The loan needed is Seven Million, Three hundred and Four Thousand, Four hundred

Naira (N7,304,400.00k) only.

8. MARKETING PLAN

Sales and Marketing Strategy

The demand forcatfish is non-seasonal commodity, we have plans to reach out to other

market in the North Central states for faster sales and better profit, we plan to also

employ the service of the available modern fish driers as we have identified that dry fish

yield more profit and it is preserved and sold at will. We are also planning to contact

Bulk cold room buyers from target market, who are still looking for more fish supply as

the fish demand and fishes' stock have not been able to satisfy them and they are always

on the lookout for more.

We are quite aware that the reason why some catfish farming companies hardly make

good profits is their inability to sell off their catfish as at when due. Our sales and

marketing team will be recruited based on their vast experience in the catfish industry

and they will be traincd on a regular basis so as to be well equipped to meet their

targets and the overall business goal of Majesty of Justice Farms.

Over and above, we have perfected our sale and marketing strategies first by

networking with agriculture merchants and businesses that rely on daily supply of fish

that are likely to become our customers. In summary, Majesty of Justice Farms will

adopt the following strategies in marketing our fish and seafood;

Introduce our business by sending introductory letters alongside our brochure

to stakeholders in the agriculture industry, households, hotels and restaurants

and agriculture produce merchant etc.

Advertise our business in agriculture and food related magazines

Attend related agriculture and food expos, seminars, and business fairs etc.

Leverage on the internet to promote our business

Engage in direct marketing

Encourage the use of word of mouth marketing (referrals)

> Specific Strategy

Marketing strategy is a process that can allow a business venture to concentrate its

limited resources on the greatest opportunities to increase sales and achieve a

sustainable competitive advantage. Our marketing strategy is centered on the key

concept that customer satisfaction is the main goal. Without customers we cannot

survive or exist. We intend to use market penetration as our marketing strategy. This is

because the sellers in this location import fish to sale, so since we would be opening our

own fish farm, we would have to take over the market by penetrating, marking the
wholesalers and individual buyers to buy from us until we break the chain of buying

imported fish. We intend to achieve this as we already have new customers and market

demand, lower prices (through flowing on breakeven for the first periods of sale),

aggressive promotion and distribution.

Opportunity or Problem in the Market to be Addressed

Fish remains the most acceptable and healthy source of protein for human consumption,

but this essential product is not readily available in our local content to address the

demand of our ever increasing population, hence the continuous importation of frozen

fish to make up forthe shortfall, but still the gap in demand and supply keeps widening,

giving rise to high cost of purchase and denial of fish in most homes because they

cannot afford it. Rampant cases of goiter (sickness due to lack of iodine) is been

recorded in our hospitals in recent times due to the scarcity of the main source ofiodine,

fish in most homes. This is a social and economic problem I felt should not be left to the

Government alone.

Our Pricing Strategy

Some of the factors that will help you sell your farm produce at the right price that

will guarantee that you make profits is dependent on your strategy while some of the

factors are beyond your control. For example, if the climatic condition is unfavorable

and if there is natural disaster in the location where you have your catfish farm, then it

will directly affect the prices of your fish.

Over and above, if you want to get the right pricing for your catfish, then you should

ensure that you choose a good location for the catfish farm, choose a good breed that
will guarantee bountiful harvest, cut the cost of running your catfish farm to the barest

minimum and of course try as much as possible to attract buyers to your catfish farm

as against taking your catfish to the market to source for buyers: with this, you would

have successfully eliminate the cost of transporting the goods to the market and other

logistics.

We are quite aware that one of the easiest means of penetrating the market and

acquiring loads of customers for all our catfishes is to sell them at competitive prices

hence we will do all we can to ensure that the prices of our fish and seafood are going

to be what other catfish farmers would look towards beating.

One thing is certain; the nature of catfish farming business makes it possible for

catfish farmers to place prices for their catfish based on their discretion without

following the benchmark in the industry. The truth is that it is one of the means of

avoiding running into loss.

> Payment Options

The payment policy adopted by Majesty of Justice Farms is all inclusive because we

are quite aware that different customers prefer different payment options as it suits

them but at the same time, we will ensure that we abide by the financial rules and

regulation of Nigeria.

Here are the payment options that Majesty of Justice Farms will make available to her

clients;

Payment via bank transfer

Payment with cash

Payment via online bank transfer

Payment via cheque

Payment via mobile money

Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client

make payment for farm produces purchase without any stress on their part. Our bank

account numbers will be made available our to clients who may want to deposit cash

or make online transfer for catfish.

Product: Our products are in high demand in the market. There is great need and

demand for supply of catfish. We intend to grow our product to be very qualitative and

beat down all imported fish in the market.

Price: Our products price would be fair to those in our target markets, we have greater

advantage as buying from us would mean the buyer would not incur transportation

(carrying) cost as our farm house is close to all our target market. We have considered

our prices and have seen that selling from N600 would give us profit while those selling

in the market by other sellers are sold for N700 – N750. Our Products are price is

almost on same benchmark with the prevailing market price.

Promotions: Atthe initial or first harvest, we intend to draw customer's attention toour

farm and product by offering discount to customers on total price payable. This

discount would be given as below:

Above 30 pcs of fish 1.5% Discount

DAbove 90 pcs of fish 2% Discount

DAbove 150 pcs of fish 2.5 % Discount

O 500 and above 5% Discount

Distribution: Our product would be available at the farm sales room (Cool Room)

immediately after harvest where buyers can come to buy, wholesalers, retailer and also

individual buyers. We would make arrangements for customers to contact the sales

representative to place order which would be delivered using the business car.

> Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are

operating from must be ready and willing to utilize every available means (both

conventional and non - conventional means) to advertise and promote the business.

We intend growing our business which is why we have perfected plans to build our

brand via every available means.

We know that it is important to create strategies that will help us boost our brand

awareness and to create a corporate identity for our fish and seafood farming business.

Below are the platforms we will leverage on to boost our fish and seafood farming

brand and to promote and advertise our business;

Place adverts on community based newspapers, radio stations and TV stations.

Encourage the use of word of mouth publicity from our loyal customers

Leverage on the internet and social media platforms like: YouTube, Instagram,

Faccbook ,Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms

to promote our business.

Ensure that we position our banners in strategic positions all around Damagasa

Gudu District.

Distribute our fliers and handbills in target areas in and around our

neighborhood

Contact corporate organizations, households, landlord associations and

schools by calling them up and informing them of Majesty of Justice Farms

and the catfish we sell

Brand our car and ensure that all our staff members are involved in the

publicity.

9. DESIGN AND DEVELOPMENT PLAN

The farm is built in Damagasa town to hold a capacity of 12,000 fingerlings and would

be fed till they grow to adult and sold in the market once they reach the desired market

size. The cycle period is 6 months (24 - 28 weeks). We intend to start another cycle

immediately the adult fishes are sold and start another cycle at the same scale, that is,

with 12,000 fingerlings. We would flood the Damagasa market with our fish which is

cheaper than the ones imported and sold in the area. Also, our second target which is

Gudu, in the town's market, there is no fish farm, all the fishes sold in those location are

costly and ours would be cheaper till we fill the market and make them start buying

from us. The farm house was built to accommodate Four (4) large ponds for start.,

Borehole when constructed will be the source of water to the farm house, a drainage

system for disposal of changed water from the pond, a cool room system to serve as

store room while we sales the fish to the market, an equipment store house. The farmn

land is very large and will be fenced as we still have hopes to grow as our sales rise.

Light to the farm would be supplied to the farm from the government source but we

have a 14KV generator as stand by power due to the high need of light by fish farm.

About N7,000,000 would be loaned and invested into the business at start up and the

proprietor would manage the farm but would make use of few laborers (8 laborers).

> Challenges and Risk

Challenges in Catfish Farming: Fish farming is a very lucrative business and a profit
maker all year round. The reason for its profitability can be attributed to the fact that it

is a food and it is always in demand. In fact, the demand for fish can never be met

because of the massive population we have especially here in Nigeria. As any farm or

business venture, catfish farming involves risk. This risk if managed carefully could be

minimized, as they have the potential to wipe out your fish stock or make the farm

unprofitable. Some of these challenges and risks include:

O Fish Loss: This loss could be as a result of disease affecting your fingerlings in the

pond. Some of these diseases include; Enteric Septicemia, Columnaris, Aeromonas,

Virions, Tape Worms, round worms, flukes, etc.

O Fish is very sensitive to manage and a slight mistake could result to degenerated

growth of your fish or even death which may cause massive revenue loss.

O Water Contamination: Spillage into the ponds could cut off oxygen flow to the

fingerlings or fishes and this would kill the fishes.

O There is no byproduct in fishery unlike poultry where even the drop can be harvested

and sold to other farmers and make extra profit. In fishery, all you get is the flesh.

OQuality of Fingerlings: Poor quality fingerlings may die or even fail to grow and this

would result in a loss of investment.

O Setting up fish farm is capital intensive, much more than that of poultry and snail

farming. Setting up fish farm requires more careful planning and much capital input.

O Failure of water supply: Breakage of watersupply is potentially dangerous to the fish

and if such occurs, there are great tendencies of the fishes dying.

Fish farming is capital intensive.

It is labor intensive
Cannibalism and high mortality rate of fingerlings

Pest and predators

Market instability

Loss during harvest.

* Projected Development Costs:

We intend to construct more additional 8 ponds to raise our ponds to 12. With this

capacity, we intend expand our production to about 36,000 fingerlings to be raised for

sale. A borehole will need to be drilled and a water tank shall be installed; this will be

the source of water for the fish farm. A greenhouse to further stabilize temperatures

shall coverthe fish tank. Among our future plans is to also purchasehauler trucks (Cold

room Vehicle) to facilitate the selling of our fish as we intend to dominate the whole of

North Central States and FCT.

10. OPERATIONS PLANtks S04b

General approach to operations

Actual Production Process The fish cycle starts from getting the fingerlings from the

market into the pond and then feeding them with the various feeds until they are due for

harvest and then taken to the market for sales.

Why Company Is Cited: The company is cited in Damagasa due to a host of different

factors which include the growing presence of the civil servants which makes it a

growing area with high population and different people from different parts of the

country. This gives us an advantage in terms of the demand for our fish. Labor is

another reason for choosing this particular location. The Damagasa community is

characterized by a population where youths occupy the largest percentage of the

population and most of these youths are either drop outs or those who cannot further

their education, these makes it possible for the company to get labor at a cheaper rate

compared cost of labor in Gudu. Another reason is the fact that with time the

company intends to be hiring graduates especially those from the agricultural

department as workers in the company either on interim basis or permanent basis. With

its nearness to FCT, the company is exposed to information about new variety of fish,

or new improved feeds through their research and development.

Business Location: The farm is located in Damagasa, Gudu District, FCT Abuja. The

site is generally flat with gentle sloping which is quite suitable for the farm. This slop

would ensure 100% drainage of the pond water. We have a plot of land there which

covers a vast land. The farm site is also located near the community stream. The

environment is cool and dense which support fish production and there is an access

road from the farm to the main dual carriage way which would reduce transportation

cost. Furthermore, harvested farm products can easily be transported to our target

markets forsale. Weekly sales are also numerous within the community. The site is also

very motor-able hence vehicles can casily reach the site to evacuate fish farm products.

Facilities and Equipment: The facilities and equipment needed in the catfish farming

are as follows: Electric Aeration, Hauling Trucks and Tanks, Generator, Mechanical

Blower, Truck Mounted/ Tractor -powered, Harvesting bag net, Bamboo Screen Trap,

Leveling tool, Distilling tool, Seine, Boom Truck, Fish Basket, Tractors, Picking Truck,

Fertilizer Tools, Analysis Kit, Chilling Box, Cast Net, Nets and Trap, Fingerling Seine,

Fingerling Suspension Net, Gillnet Seine generator, Spawning tools, Fridge ctc

11. FINANCIAL PROJECTIONS

Sales and Cost Plan

Details
Year

1 Year2

Year3

Year4

Year

(NO00)

(NO00)

(NO00)

(NO00)

(NO00)

15,340

15,340

15,340

14,040

Sales

15,470

(3,198)

(3,198)

Material(3,198)

(3,198)

Direct

(3,198)

Cost

Direct Labour Cost (3,110)

(3,110)
(3,110)

(3,110)

(3,110)

Gross Profit

7,732

9,032

9,162

9,032

9,032

Indirect Cost

(1,000)

(1,000)

(1,000)

(1,000)

(1,000)

Net Profit

6,732

8,032

8,162

8.032

8,032

Cash Flow Statement

YEAR 2
|ITEM

YEAR 3

YEAR 1

Beginning cash Receipt (Sales)

6,732

14,764

Cash Inflow

14.040

15,340

15,470

Operating Expenses

(1,000)

(1,000)

(1,000)

Fingerlings

(720)

(720)

(720)

Feed

(2,164)

(2,164)

(2,164)

Chemical

(150)

(150)
(150)

Labour

(3,110)

(3,110)

(3,110)

Harvesting and Haulage

120)

(120)

(120)

Others

(44)

(44)

(44)

Total Outflow

7,308

7,308

7,308

Cash Available

14,040

22,072

30,234

CASH BALANCE

6,732

14,764

22,926
> Loan Repayment Plan:

Modified Payback Period: an investment / project evaluation technique which will be

adapted by this business is the modified payback period.

The modified payback period is the classic economic method of evaluating

investment or project proposals. It recognizes the time value of money as well as the

time it will take the business to pay back it loan obligation.

It postulates that cash flows arising at different time periods differ in value and are

comparable only when their equivalents present value is found out.

Payback Period of Loan

Payback(N000)

Cash flow (NO00)

Year

5% def

PV(N000)

(7,304)

1.000

(7,304)

(7,304)

6,732

0.952

6,409

(895)

8,032
0.907

7,285

6,390

8,162

0.864

7,052

13.442

8,032

0.823

6,610

20,052

8,032

0.784

6,297

26,349

This implies that the business is viable as it can recoup the investment within less than

two years.

12. CONCLUSION

Like several other agribusinesses that have great potentials for both scale and

profitability starting a fish farming in Nigeria or across Africa is a great agribusiness

to start up if executed at the right scale.

We also know that fish farming in Nigeria is one of the most profitable agribusiness

to venture into, and as such, investing in the agribusiness is a smart decision to make,
especially with its local demand and very high export potentials.