- COMPANY NAME AND BRIEF ON THE BUSINESS CONCEPT
My name is Mrs. Edith Onwuka and my company name is Tekland International Ltd, I took up the business of fish farming when I resigned from my job as an accountant in an oil company in 2009. During the course of my seven years of work experience in the oil sector, I have always dreamt of a business of my own and I continued saving towards it. In 2009, having made up my mind on the business channel and with a start up capital at hand, I quite my job to establish this fish farm.
As a newly married, my quest and prayer for a line of work that will give me freedom for my matrimonial responsibility and as well provide financial support the family came to reality.
Today, I have employed four years into this venture and I have no regret living my N3m per annum job for it. I am financially better, I am a loving mother to my two children and my husband, I have three staff under my employment and that gives me a lot of joy.
(2) OPPORTUNITY OR PROBLEM IN THE MARKET TO BE ADDRESSED
During my feasibility studies, my findings clearly indicates that 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 for the shortfall, but still the cap 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 hospital in recent times due to the scarcity of the main source of iodine, fish in most homes. This is a social and economic problem I felt should not be left to the Government alone. Most children that grow with low protein intake end up malnourish and low intelligent quotient. Economically, the continuous importation of frozen fish to the country reduces our GDP, and as economist I know what this situation does to the national income. Also, the ever increasing rate of unemployment in the country is truly becoming worrisome to the Government and well meaning Nigerians.
(3) IMPORTANCE OF THIS CONCEPT
like most entrepreneurs, I entered the fish business for profit, but the underlying benefits cannot by 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.
(4) WHO ARE THE CURRENT AND POTENTIAL COMPITOTORS AND OUR COMPITITIVE ADVANTAGE
Our main competitors in this fish farming business are the importers of frozen fish and co-fish-farmers like me. From my analysis, the cost per kilogram of frozen fish, popularly called ice-fish is N750, to achieve this, I weighed three units which gave me a kilogram of and a unit of that size of fish I bought for N250. Currently, the catfish is sold to main distributors at N500 per kilogram, and it is retailed at N600 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, I have a considerable advantage, being that fish farming is my passion and my farm is situated right within my premises which makes supervision easier and effective. I own the main capital in the business, which is the land and the situation/location and climate of the area is very suitable for fish production. I have relatively low overhead expenses with few staff presently to match my current production capacity.
(5) TARGET MARKET
With the location of our business in Lagos State, I enjoy huge patronage of the large population here. Currently, our product is not enough for the market women and hotels around my place, isashi, igbara axis. But moving from 5,000 to my proposed 20,000 in every three months, I have made extra effort to contact cold room buyers within the state, and preservation through drying is also a planned option. I am also reaching out to industrial users that utilizes the fish for fish meal production and other products. I have been to Benue state where I saw 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.
(6) MARKETING STRATEGY
The demand for cat fish is non seasonal commodity ,we have plans to reach out to other market in and around Lagos for faster sales and better profit, we plan to also employ the service of the available modern fish driers as I have identified that dry fish yield more profit and it is preserved and sold at will. Bulk cold room buyers from the northern part of the country are already indicating interest, a near by farm with over 200,000 fishes stock have not been able to satisfy them and they are always on the look out for more.
(7) BUSINESS MODEL
Currently, I am on a 5000 capacity of cat fish production in every three months. I have been able to achieve this with three capable staff, my farm manager and two helpers.
Production of cat fish 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.
Please see below tabular presentation of the life cycle feeding process and cost per stage. Including other expenses.
| FEED TYPE | ATAMIA | Feed size; 0.2, 0.6, 08, – 1mm | Feed size; 1.2 – 2mm | Unit cost | |||
| UNIT/NO OF FISH | CONSUMPTION RATE COST (N)/WEEK 0 – 3WEEKS | CONSUMPTION RATE COST (N)/WEEK 1 – 3MONTHS | CONSUMPTION RATE COST (N) 3 – 6MONTHS | TOTAL COST OF FEED | SALARY & OTHER EXPENSES | TOTAL COST PER CYCLE (6MTHS) | |
| 500 | 500X3=1,500 | 1000X12=12,000 | 4000X12=48,000 | 61,500 | 100,000 | 161,500 | 323 |
| 5000 | 15,000 | 120,000 | 480,000 | 615,000 | 900,000 | 1,515,000 | 303 |
| 20,000 | 60,000 | 480,000 | 1,920,000 | 2,460,000 | 3,000,000 | 5,460,000 | 273 |
| 1 |
Our stocking strategy entails having four pounds stocked with certain number of fishes (presently we have 5000). This stocking is done every two months, hence at the maturity time of a set we already have three younger sets waiting.
On harvesting, the following set is usually four months old and the one following is two months old while the youngest set have just been hatched. This process guarantees our harvest every three months, which gives us four times harvest in one year.
8. SUMMARY OF PROJECTED REVENUE AND PROFIT BASED ON THE PENETRATION OF THE TARGET MARKET
From the business model structure above, we have shown that the total expenses to bread a set of 5000 fish cost N1,515,000, and that of breading a set of 500 fishes is N161,500 while the projection for 20,000 fishes gives a cost of 5,460,000. This analyses gives a unit cost of N303, N323 and N273 respectively.
Noticeably, there is lower marginal cost of production with increase in number of fish in production.
Presently, the selling price for a kilo of cat fish is N500.
From experience, we have recorded less than 10% loss of fish upon harvest. For analyses purpose, we are giving a loss margin of 20% for business safety reasons. For a clearer presentation, please see the tabular presentations below:
FOR PRODUCTION OF 500 FISHES:
| QTY | UNIT PRICE(N) | AMOUNT(N) | |||
| BREADING | 500 FISHES | 323 | 161,000 | ||
| SELLING | 400 FISHES | 500 | 200,000 | ||
| PROFIT | 39,000 |
FOR PRODUCTION OF 5000 FISHES
| QTY | UNIT PRICE (N) | AMOUNT(N) | ||
| BREADING | 5000 | 303 | 1,515,000 | |
| SELLING | 4000 | 500 | 2,000,000 | |
| PROFIT | 485,000 |
FOR PRODUCTION OF 20,000 FISHES
| QTY | UNIT PRICE (N) | AMOUNT(N) | ||
| BREADING | 20,000 | 303 | 6,060,000 | |
| SELLING | 16,000 | 500 | 8,000,000 | |
| PROFIT | 1,940,000 |
FOR PRODUCTION OF ONE FISHES ASSUMING NO % UNIT LOSS
| QTY | UNIT PRICE (N) | AMOUNT(N) | ||
| BREADING | 1 | 323 | 323 | |
| SELLING | 1 | 500 | 500 | |
| PROFIT | 177 |
SUMMARY
| EXPECTED PROFIT (N) | TURNOVER PER ANNUM WITH 3 TIMES HARVEST (N) | ||
| 1 FISH | 177 | 531 | |
| 500 FISHES | 39,000 | 117,000 | |
| 5000 FISHES | 480,000 | 1,440,000 | |
| 20,000 FISHES | 1,940,000 | 5,820,000 |
9. MANAGEMENT TEAM
When I started this business in 2010, our production rate was 500 fishes but this figure rose to 3000 with one year, and today we can boast of 5000 matured fishes in our three years of operation.
This achievement I will always attribute to the quality of my management team, their expertise and devotion.
My farm manager Mr Yinka Olanikon, who is the head is an experienced young man formally headed two successful farms before joining me. He is a graduate of macro biology but with wealth of knowledge in fish farming, especially fish nutrition, he is very industrious and has a flare for growth. With a little top up on his salary status he was happy to join me and since then we have enjoyed each other’s company.
Next in the staff list of six is the Manager Assistant Segun Adejana, he is equally a graduate, has worked with various farms around Lagos and has comfortably worked with me for two years. He is a young hard working man, he specializes in hatchery and tendering of small fingerlings and juveniles.
The third staff is Mr. Ndubuisi Nwafor, I call him the utility player, he happens to be good in all aspect of cat fish farming, from hatchery to harvesting and sales. He has given us more than four major customers.
Mrs Vivian Uche is our farm mama, she is our stock keeper and operations person, she is highly respected by all the other staff, her matured approach to operations have always helped management communication to other staff much easier. She is an OND holder but and a formal bank worker but with special love for farm work just like me, she is very happy working with us.
The other two staff are the two helpers, a male and a female, they assist in all the main departments of our operations, from nursery to the sales aspect.
10. AMMOUNT OF MONEY NEEDED FROM INVESTUS AND FOR WHAT PURPOSE.
I am asking for N10,000,000 (ten million naira) to support our operations,
With our projected expansion from 5000 fishes to 20,000 fishes every three months, the ten million naira will be used to support the feeding, and expand our facilities as listed below;
- Purchase of a 15tons multipurpose (cooling and drying) van at N2,000,000 (two million naira).
- Preparation of three more ground pounds with concreted sides (5000fishes capacity) at N3,000,000 (three million naira) at one million naira each.
- Construction of a bigger over head water tank, at N1,000,000 (one million naira.)
- Purchase of a bigger diesel generating set N600,000 (six hundred thousand naira)
- Purchase of more fish feeds to support the increase consumption as a result of increased number of fishes at N3,000,000 ( three million naira)
- Stocking of diesel and other working tools and hatchery trays and nursery at N500,000 (five hundred thousand naira.
11. CURRENT STATE OF THE FIRM.
Currently our farm is running on a six main staff strength, the two third of the unused part of my plot where I live is been used for the farm which makes supervision easier, the plot and a vacant full plot next to mine have been purchased to support this expansion. We have four earthing pounds, four tarpaulin made hatcheries, six tarpaulin nurseries, one kama japan petrol generator, 12,000 litres over head water tanks, one Nissan delivery and utility 3 tonnes capacity van.