Executive summary
Derek Fishery Limited will be carrying out cat fish farming with the
special emphasis on the provision of catfish for Ughelli metropolis and its
environs. The major focus shall be for both short and long term goals in the
business of catfish farming and to expand the production of catfish and
customer base both locally and regionally in and around Ughelli metropolis.
special emphasis on the provision of catfish for Ughelli metropolis and its
environs. The major focus shall be for both short and long term goals in the
business of catfish farming and to expand the production of catfish and
customer base both locally and regionally in and around Ughelli metropolis.
The business will be owned,
managed and operated by eight shareholders namely; Edohworhu Promise, Nwosa Joy, Eyasevwe Faith,
Azubuike Judith, Ezekiel Evi Prudence, Nwadishi Adaeze and Ogagayere Rita until further decision by the shareholders, the
ownership of the business shall be restricted to the shareholders stated above.
managed and operated by eight shareholders namely; Edohworhu Promise, Nwosa Joy, Eyasevwe Faith,
Azubuike Judith, Ezekiel Evi Prudence, Nwadishi Adaeze and Ogagayere Rita until further decision by the shareholders, the
ownership of the business shall be restricted to the shareholders stated above.
Registration of the business
Derek Fishery Limited shall be the name of our fish farm and it shall be
duly registered with the Corporate Affairs Commission (CAC).
duly registered with the Corporate Affairs Commission (CAC).
Business description
Derek Fishery Limited shall specialize on cat
fish farming and production of catfish for the targeted population which is
Ughelli metropolis. The target market shall be low, medium and high class
income earners with spending large amounts of money. This business will operate
as a retail establishment owned and operated by eight share holders which are Edohworhu Promise, Nwosa Joy, Eyasevwe Faith,
Azubuike Judith, Ezekiel Evi Prudence, Nwadishi Adaeze and Ogagayere Rita as a
limited liability company.
fish farming and production of catfish for the targeted population which is
Ughelli metropolis. The target market shall be low, medium and high class
income earners with spending large amounts of money. This business will operate
as a retail establishment owned and operated by eight share holders which are Edohworhu Promise, Nwosa Joy, Eyasevwe Faith,
Azubuike Judith, Ezekiel Evi Prudence, Nwadishi Adaeze and Ogagayere Rita as a
limited liability company.
Production
of catfish is one business that demands care and expertise, the main
expenditure in the production cycle is the fish feed and the staff salary. It
takes a life cycle of about six months to get to maturity when fed
adequately. Upon hatching, the 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 minimal. This feed type contains adequate minerals, vitamins and
nourishment to support growth, development and protection hence they are
specially made. A matured cat fish is expected to weigh one kilogram or above.
of catfish is one business that demands care and expertise, the main
expenditure in the production cycle is the fish feed and the staff salary. It
takes a life cycle of about six months to get to maturity when fed
adequately. Upon hatching, the 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 minimal. This feed type contains adequate minerals, vitamins and
nourishment to support growth, development and protection hence they are
specially made. A matured cat fish is expected to weigh one kilogram or above.
Required funds
The business shall require the sum of 4,000,000 as
startup capital which shall be funded by shareholder’s contributions. Derek
Fishery Limited shall be a limited liability company in which the ownership
shall be by shares which shall be at N4 per share.
startup capital which shall be funded by shareholder’s contributions. Derek
Fishery Limited shall be a limited liability company in which the ownership
shall be by shares which shall be at N4 per share.
Objectives
Derek Fishery Limited objective is to make catfish available for the low, medium and high income earners in Ughelli
metropolis at a very affordable price.
metropolis at a very affordable price.
Location
Derek Fishery Limited shall be located in Afiesere community in
Afiesere-Ughelli. Afiesere community is a suburb of Ughelli with good network
of road and affordable standard of living which is certainly a very strategic location, since the area
has a good network of roads. This location since it is close to the city
centres, it shall be very easy for us to get assess to the market to get our
raw material and to sell our finished products.
Afiesere-Ughelli. Afiesere community is a suburb of Ughelli with good network
of road and affordable standard of living which is certainly a very strategic location, since the area
has a good network of roads. This location since it is close to the city
centres, it shall be very easy for us to get assess to the market to get our
raw material and to sell our finished products.
Mission/vision statement
Derek Fishery Limited Mission Statement: Derek Fishery Limited
mission is to provide affordable catfish to the people in Ughelli metropolis
mission is to provide affordable catfish to the people in Ughelli metropolis
Vision Statement: Derek Fishery Limited hopes to expand its target area to the entire Delta
State and beyond.
State and beyond.
Core values
Our core values are dedication, discipline, and
hard work
hard work
Competitive analysis
Our main competitors in this fish farming business
are the importers of frozen fish and other fish-farmers like us. From our analysis,
the cost per kilogram of frozen fish, popularly called ice-fish is N750, to
achieve this, we weighed three units which gave us a kilogram and a unit of
that size of fish we bought for N250. Currently, the catfish is sold to main
distributors at N400 per kilogram, and it is retailed at N500 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 cat fish farming, we have a considerable advantage, being
that fish farming is our passion and our farming operations shall be carried
out by the shareholder which makes supervision easier and effective. The main
capital in the business shall be contributed by the shareholders.
are the importers of frozen fish and other fish-farmers like us. From our analysis,
the cost per kilogram of frozen fish, popularly called ice-fish is N750, to
achieve this, we weighed three units which gave us a kilogram and a unit of
that size of fish we bought for N250. Currently, the catfish is sold to main
distributors at N400 per kilogram, and it is retailed at N500 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 cat fish farming, we have a considerable advantage, being
that fish farming is our passion and our farming operations shall be carried
out by the shareholder which makes supervision easier and effective. The main
capital in the business shall be contributed by the shareholders.
Management team plan
Our farm manager shall be Edohworhu Promise, who is
an experienced young lady who had formally headed two successful farms before
joining us. With her wealth of knowledge in fish farming, especially fish
nutrition and being very industrious and has a flare for growth.
an experienced young lady who had formally headed two successful farms before
joining us. With her wealth of knowledge in fish farming, especially fish
nutrition and being very industrious and has a flare for growth.
The Assistant Manager shall be Nwosa Joy who had
worked with various farms around Ughelli. She is a young hard working lady who
specializes in hatchery and tendering of small fingerlings and juveniles.
worked with various farms around Ughelli. She is a young hard working lady who
specializes in hatchery and tendering of small fingerlings and juveniles.
The third person, Eyasevwe Faith is who we called the
utility player, she happens to be good in all aspect of cat fish farming, from
hatchery to harvesting and sales.
utility player, she happens to be good in all aspect of cat fish farming, from
hatchery to harvesting and sales.
Azubuike Judith shall be our stock keeper and
operations person, she is highly respected by the other entire shareholder, her
matured approach to operations will always be of great help to management
communication to other shareholder much easier.
operations person, she is highly respected by the other entire shareholder, her
matured approach to operations will always be of great help to management
communication to other shareholder much easier.
The other shareholders shall assist in all the main
departments of our operations, from nursery to the sales aspect.
departments of our operations, from nursery to the sales aspect.
Marketing plan
Catfish
is a non seasonal commodity, we have plans
to reach out to other market in and around Ughelli metropolis 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. Bulk cold room buyers from other parts of Delta
State of the shall also the contacted in future, a nearby farm with over
200,000 fishes stock have not been able to satisfy them and they are always on
the look out for more.
is a non seasonal commodity, we have plans
to reach out to other market in and around Ughelli metropolis 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. Bulk cold room buyers from other parts of Delta
State of the shall also the contacted in future, a nearby farm with over
200,000 fishes stock have not been able to satisfy them and they are always on
the look out for more.
Target Market: Low,
medium and high income earners in Ughelli metropolis through market women and hotels in Ughelli metropolis. Extra
effort will be made to contact cold room buyers within the state, and
preservation through drying is also a planned option. We shall also be reaching
out to industrial users that utilize the fish for fish meal production and
other products.
medium and high income earners in Ughelli metropolis through market women and hotels in Ughelli metropolis. Extra
effort will be made to contact cold room buyers within the state, and
preservation through drying is also a planned option. We shall also be reaching
out to industrial users that utilize the fish for fish meal production and
other products.
Pricing
The prices of our catfish shall be the average
price of our competitor’s price. Since we shall not be running the farm through
loan, we shall afford to sell at a lower
price and hang on to a lesser profit which shall encourage higher turnover than
our competitor, thereby making a higher profit in the long run. We shall sell a
kilogram of our catfish at the price of N380.
price of our competitor’s price. Since we shall not be running the farm through
loan, we shall afford to sell at a lower
price and hang on to a lesser profit which shall encourage higher turnover than
our competitor, thereby making a higher profit in the long run. We shall sell a
kilogram of our catfish at the price of N380.
Financial plan
Required Capital Investment
|
Capital Investment Item
|
Qty
|
Unit price (
|
Total (
|
|
Land
|
200 x 100
|
600,000
|
600,000
|
|
Ponds (Digging)
|
12
|
40,000
|
480,000
|
|
Borehole
|
1
|
100,000
|
100,000
|
|
Hatchery
|
4
|
20,000
|
80,000
|
|
Vehicle (Van)
|
1
|
800,000
|
800,000
|
|
Farm Offices
|
–
|
400,000
|
400,000
|
|
Total
|
|
|
2,460,000
|
Operation Costs
Note: Since
it takes six (6) months for catfish to get to maturity, our account shall be
based on a 6-month cycle. We shall also assume a production rate of 200,000 of
catfish in 6 months
it takes six (6) months for catfish to get to maturity, our account shall be
based on a 6-month cycle. We shall also assume a production rate of 200,000 of
catfish in 6 months
|
S/N
|
MATERIALS
|
Qty in 6 month
|
Average Unit Cost (
|
Monthly expenses
|
Yearly expenses
|
|
1
|
Fish feed (fingerlings) Atamia 0.2mm
|
12 bags
|
3,600
|
7,200
|
86,400
|
|
2
|
Fish feed (jumpers)
Atamia 0.6mm |
18 bags
|
3,000
|
9,000
|
108,000
|
|
3
|
Fish feed (juvenile)
Atamia 0.8 -1mm
|
24 bags
|
2,500
|
10,000
|
120,000
|
|
4
|
Fish feed (Adult
Catfish) Atamia 1 – 2mm |
30 bags
|
2,000
|
10,000
|
120,000
|
|
5
|
Power for borehole
|
–
|
3,000
|
3,000
|
6,000
|
|
6
|
Medications
|
300
|
5,000
|
250,000
|
3,000,000
|
|
Subtotals
|
289,200
|
3,440,400
|
|||
General cost (Overheads)
|
Cost items
|
Expenses
|
||
|
Monthly
|
6 months
|
Yearly
|
|
|
Salaries
|
320,000
|
1,920,000
|
3,840,000
|
|
Utilities
|
10,000
|
60,000
|
120,000
|
|
Marketing
|
10,000
|
60,000
|
120,000
|
|
Administrative Expenses
|
20,000
|
120,000
|
240,000
|
|
Cleaning and
toiletries |
8000
|
48,000
|
96,000
|
|
Miscellaneous
|
10,000
|
60,000
|
120,000
|
|
Depreciation
|
5,000
|
1,920,000
|
60,000
|
|
Sub-total
|
378,000
|
2,268,000
|
4,536,000
|
Total Operating Cost for a year = Operation Cost
+ General Overhead
+ General Overhead
=
N 500,400+ N 4,536,000
=
N 5,066,400
Ø Production of 200,000 kg of cat fish in 6 months
Ø Depreciation on fixed assets assumes 4-years life
of assets written off at 25% year for all assets.
of assets written off at 25% year for all assets.
Ø Direct costs include materials includes every
material used in the course of carrying out the operations
material used in the course of carrying out the operations
Revenue
|
S/N
|
Product
|
Qty
|
Unit Cost (
|
Six months income
|
Yearly income
|
|
1
|
Fish (1kg)
|
70,000
|
380
|
26,600,000
|
319,200,000
|
|
2
|
Fish (2kg)
|
60,000
|
600
|
36,000,000
|
432,000,000
|
|
2
|
Fish (2.5kg)
|
50,000
|
700
|
35,000,000
|
420,000,000
|
|
1
|
Fish (3 kg)
|
20,000
|
900
|
18,000,000
|
216,000,000
|
|
Subtotals
|
115,600,000
|
1,387,200,000
|
|||
Profitability Analysis Table
|
Profitability item
|
Six months
|
Per year
|
|
Revenue
|
115,600,000
|
1,387,200,000
|
|
Less: General Cost
|
2,268,000
|
4,536,000
|
|
Less: Operating Cost
|
289,200
|
3,440,400
|
|
Profit
|
9,002,800
|
108,033,600
|
Source of Fund
Funds
from shareholders at the rate ofN4 per
share
from shareholders at the rate of
share
Share of Profit
40% of profit shared to shareholders
Investment
40% of the profit shall be invested in different
sectors based on shareholders’ decision
sectors based on shareholders’ decision
Company Reserve
20%
shall be left in the company account as reserved funds.
shall be left in the company account as reserved funds.
Conclusion
Catfish
farming is a very lucrative business available to Nigerian entrepreneurs, it
requires very little skill and work. Although the starting is a little
challenging, since the entrepreneur has to wait for about six month to get the
first harvest, but the profit accruable is worth the waiting time.
farming is a very lucrative business available to Nigerian entrepreneurs, it
requires very little skill and work. Although the starting is a little
challenging, since the entrepreneur has to wait for about six month to get the
first harvest, but the profit accruable is worth the waiting time.
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