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I. INTRODUCTION

In the Philippines, aquaculture is a especially important

economic activity. It is also known as aquafarming. It involves cultivating freshwater

and seawater populations under controlled conditions. Particular kinds of aquaculture

include fish farming, shrimp farming, oyster and mussel farming, seaweeds farming

and the cultivation of ornamental fish.

The farming of fish is the most common form of aquaculture. It involves raising

fish commercially in ponds or sea enclosures, usually for food. In contrast to

agriculture, the rise of aquaculture is a contemporary phenomenon. According to

Professor Carlos M. Duarte, about 430 or 97% of the aquatic species presently in

culture have been domesticated since the start of the 20 th century.

A fishpond is a controlled pond, artificial lake, or reservoir that is stocked with fish

and is used in aquaculture for fish farming. Fishponds are used today in aquaculture.

They are common in the Philippines where milkfish, tilapia, crabs, lobsters, tiger

shrimp, snails and others may be kept. Fishponds are also being promoted in

developing countries. They provide a source of food and income from the sale of fish

for small farmers and can also supply irrigation needs and water for livestocks.

Worldwide, the most important fish species used in fish farming are carp, salmon,

tilapia, catfish and milkfish.

Milkfish farming has changed from its traditional small-scale form into a global

industry. The global annual production of freshwater milkfish in 2012 was about
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280,000 tonnes of which China produced 180,000 tonnes followed by India and

Thailand with 35,000 tonnes each. With this volume of milkfish produced by the

Philippines’ neighboring countries, we can say that our country is very much far behind

when it comes to annual production which was only 7 tonnes.

Milkfish have generally symmetrical and streamlined appearance, with a sizeable

forked caudal fin. They can grow up to 1.7 m (5 ft 7 in) but most often about 1 meter

(39 in) in length. The milkfish is an important seafood in Southeast Asia and some

Pacific Islands. Because milkfish is notorious for being much bonier than other food

fish, deboned milkfish called “boneless bangus” in the Philippines has become popular

in stores and markets.

Traditional milkfish aquaculture relied upon restocking ponds by collecting wild

fry. This led to a wide range of variability in quality and quantity between seasons and

regions. In 1980, the first spontaneously spawning happened in sea cages. These

eggs were found to be sufficient to generate a constant supply for farms. The

Philippines have integrated nurseries with grow-out facilities and have densities of

about 1,000 per liter.

There are three methods of outgrowing milkfish: pond culture, pen culture and

cage culture.

Shallow ponds are found mainly in Indonesia and the Philippines. These are

shallow 30-40 centimeters (12-16 inches) brackish ponds with benthic algae, usually
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used as feed. Deep ponds (2-3 meters) have a more stable environment and began in

1970. They are so far have shown less susceptibility to disease than shallow ponds.

In 1979, pen culture was introduced in Laguna de Bay which had high primary

production. This provided an excellent food source.

Cage culture occurs in coastal bays. These consist of large cages suspended in

open water. These rely largely upon natural sources of food.

Harvest occurs when milkfish are between 20 to 40 cm (250-500g). Forced

harvest happens when there is an environmental problem such as depleted oxygen

due to algal blooms and all stocks is removed. (Froese, Rainer 2012)

II. PRODUCT/BUSINESS DESCRIPTION

The proposed project will be a milkfish farm in Amaya, Tanza,

Cavite. This was the chosen site due to its proximity to target customers and means of

transportation.

The business will be named MAC Milkfish Aquaculture (M for Milkfish, A for

Aqua and C for Culture) with the objective of having customers remember the source

of quality milkfish in Cavite, particularly in the public markets of Tanza, Gen. Trias and

Rosario. It has also an aim to become the leading supplier of milkfish to restaurants of

the said areas.

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On the first three years of operation, the business will concentrate on milkfish

farming. The entrepreneur will try to take the opportunity of having also a pond culture

of tilapia in the future.

The method of distribution or selling will be on a wholesale basis with an

objective of becoming the direct distributor in the public markets (to fish vendors) and

restaurants in Tanza, Gen. Trias, and Rosario.

Milkfish farming is still few in Cavite province because majority of distributors

came from Batangas, so its potential to be viable and profitable is great. Some of the

advantages of this type of business are the following:

 limited amount of capital is required

 milkfish farming is easy to manage

 it will not be affected by red tide because milkfish will be cultured in ponds

 it can capture the whole Cavite market and nearby provinces

 limited number of direct competitors in Cavite

 no technology is required

 it is not a labor intensive business

SIGNIFICANCE OF THE STUDY

The result of this study will certainly become a basis for the researcher to decide

on implementing the project in the near future.

This study will be significant to the following:

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To the researcher. Through this study, he will be challenged to invest his money

because of the business potential to generate revenues and income.

To the Local Government. The result of this study can provide useful information to

the local government of Cavite and can analyze the importance of milkfish farming to

the community.

To Future Investors. This study may be of great interest to other investors in

CALABARZON as basis for formulating decisions on what type of business that they

will be engaged in.

III. PERSONNEL ASPECTS

Research on businesses has shown that the success or failure

of companies depend not only on the efficiency of the owner but also on how well the

workers perform their duties and responsibilities. Thus, the need for good and close

harmonious relationship between the owner of the business and the workers is very

important.

The business will have the following for its manpower: a manager, 3 workers and

1 caretaker.

A. QUALIFICATIONS OF THE PERSONNEL

Manager

 A graduate of a four-year course in Business Administration major in Business

Management
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 Honest, hardworking and self-motivated

 Can confidently deal with all kinds of people

 Physically fit to perform his job

 Organized, can relate and work well with other people

 Has a complete knowledge about the business

Caretaker

 At least a high school graduate

 Preferably male

 Physically fit to perform his job

 Must be hardworking, prompt and reliable

Workers (3)

 Must be at least high school graduates

 Must be physically fit to perform their jobs

 Knowledgeable on the procedures of milkfish farming

 Knowledgeable on how and when to harvest milkfish

 Must be able to determine the right quality of milkfish to be sold to fish

vendors in public markets and restaurants

B. DUTIES AND RESPONSIBILITIES

Manager

 Conducts a daily inspection of milkfish farm

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 Supervises the workers and the caretaker

 In-charge of accepting wholesale orders from fish vendors and restaurants

 Sees to it that all deliveries will be properly met (time, quality, volume and

prices)

 Formulates marketing strategies

 In-charge of doing the financial aspects of the business

 Will also serve as the bookkeeper of the farm

 In-charge also of buying the needed materials, tools or equipment for milkfish

farm

Caretaker

 In-charge of reporting to the manager problems of milkfish farm

 Oversees the daily condition of the farm

 Performs other functions as instructed by the manager

Workers (3)

 In-charge of the actual “culturing” of milkfish

 Sees to it that the quality and size of harvest must be maintained

 In-charge also of the actual harvesting of milkfish

 Together with the manager, they are also in-charge of the delivery of milkfish

to target markets
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COMPENSATION PLAN

The following is the compensation plan that MAC Milkfish Farm will be adopting:

1. A monthly salary to be provided are:

 Manager – P9,000

 Caretaker – P4,500

 Workers (3) – P5,000 each

2. They will be provided with a Christmas bonus amounting to P1,500 each

IV. STANDARD CAPACITY OF THE MILKFISH FARM

According to an actual interview conducted from the

researcher’s friend who is presently having a milkfish farm and from the information

provided by some workers, the researcher was able to find out that the:

 Minimum size of milkfish pond is 100 sq. meters.

 Maximum size of milkfish pond that is allowed by the municipality is 2,000 sq.

meters.

 Milkfish are abundant from January to December.

MAC MILKFISH FARM CAPACITY

 Size of the farm is 1,000 sqm

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 No. of kilos per harvest or per month is 2,300

V. MARKET ANALYSIS

Marketing is an integrated communications-based process

through which industrial and individual customers discover an existing and newly-

identified needs and wants that may be satisfied by the existing product. Marketing is

the activity and processes for creating, communicating, delivering, and exchanging

offerings that have of value for customers and the society at large.

Marketing consists of a set of principles for choosing target markets, identifying

customer needs, developing want-satisfying products and services, and delivering

value to customers and profit to the company. It is relevant to retailers, wholesalers,

manufacturing companies, and to every organization.

The market study seeks to determine the following:

2. The size, nature and growth of total demand for the product;

3. The description and price of the product to be sold;

4. The supply situation and the nature of competition;

5. The different factors affecting the market of the product; and

6. The appropriate marketing program for the product.

VI. TARGET MARKET/CUSTOMERS

DEMAND ANALYSIS
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Demand is the amount of a particular economic good that a

particular number of customers or group of customers would want to purchase at a

given time. Along with supply, demand is one of the two key determinants of the

market price.

Who and Where is the market?

1. The major customers are the fish vendors in Tanza, Gen. Trias and Rosario

public markets. From the survey and interviews conducted, there are 91 fish

vendors from the three places, 75% or 68 are selling milkfish in their stalls as of

2015 (a 5% increase is assumed in 2016, to come up with a total of 71).

2. The secondary customers are restaurants from the three places.

There are 32 restaurants as of 2015 from the three target places, 50% or 16 are

offering milkfish dishes to their customers (a 5% increase is assumed in 2016 to

come up with a total of 17).

TABLE 1
PROJECTED POPULATION
(According to Customer Classification)
In Tanza, Gen. Trias and Rosario

YEAR Major Secondary % Increase Projected

Customers Customers Population/
(Fish (Restaurants) Number of
Vendors) Customers
2016 71 17 5% 92
2017 74 18 5% 97
2018 78 19 5% 102
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Table 1 shows the projected number of major and secondary customers who will be

acquiring milkfish from 2016 to 2018.

TABLE 2
PROJECTED DEMAND
(Major Customers)

YEAR Major Annual Total % Increase Projected

Customers Orders Orders Demand
(in kilos) (in kilos)
2016 71 (50 15,000 1,065,000 0% 1,065,000
kilos x 300
days)
2017 74 15,000 1,110,000 5% 1,165,500
2018 78 15,000 1,170,000 5% 1,228,500

TABLE 3
PROJECTED DEMAND
(Secondary Customers)

YEAR Secondary Annual Total % Increase Projected

Customers Orders (in Orders Demand
kilos) (in kilos)
2016 17 (5 kilos 1,500 25,500 0% 25,500
x 300
days)
2017 18 1,500 27,000 5% 28,350
2018 19 1,500 28,500 5% 29,925

The projected demand in kilos of major customers (50 kilos daily x 300 operating days)

and secondary customers (5 kilos daily x 300 operating days) as presented in Tables

2 and 3. An assumption was made that there will be 5% increase in the annual orders.
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TABLE 4
SUMMARY OF PROJECTED DEMAND

2016 2017 2018

Major 1,065,000 1,165,500 1,228,500
Customers
Secondary 25,500 28,350 29,925
Customers
TOTAL 1,090,500 1,193,850 1,258,425
(in kilos)

SUPPLY ANALYSIS

Supply is the total number of a good or product available for purchase and can

be provided by the existing competitors; along with demand, it is one of the two key

determinants of price.

TABLE 5
List of Competitors with Milkfish Farm

NAME LOCATION
1. Cornejo’s Milkfish Pond Calatagan, Batangas
2. Bangus Batangas Lian, Batangas
3. Acme’s Fishpond Talisay, Batangas
4. Rogelio’s Milkfish Farm Naic, Cavite
5. Sta. Rita’s Milkfish Tanza, Cavite
Table 5 presents the name of competitors and their location. It was found out that

these 5 are the main suppliers of milkfish in Tanza, Gen. Trias and Rosario Public

Markets.

TABLE 6
PROJECTED SUPPLY
(in kilos)
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YEAR BATANGAS CAVITE Total
Projected
Supply
2016 545,250 272,625 817,875
2017 596,925 298,463 895,388
2018 629,213 314,606 943,819

Table 6 shows the total projected supply for years 2016 to 2018 provided by the

milkfish suppliers in Batangas (1/2 of the total demand); and Cavite (1/4 of the total

demand). This was based from the interviews conducted by the proponent from the

present milkfish farmers and also based on their production capacity.

DEMAND AND SUPPLY ANALYSIS

It is necessary to identify the difference between the projected demand and the

projected supply to be able to determine the market share of the product. The

percentage of the market share that will be derived will represent the share of MAC

Milkfish Aquaculture in the market for the next three years.

TABLE 7
PROJECTED UNFILLED DEMAND
(in kilos)

YEAR PROJECTED PROJECTED PROJECTED

DEMAND SUPPLY UNFILLED
DEMAND
2016 1,090,500 817,875 272,625
2017 1,193,850 895,388 298,462
2018 1,258,425 943,819 314,606
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Based on the illustration above, it shows that there is a wide gap between the

projected demand and projected supply. MAC Milkfish Aquaculture intends to capture

10% of the unfilled demand (which is the actual capacity of its pond) on its first year;

12% on its second year; and 14% on its third year of operations as illustrated on the

next table.

TABLE 8
PROJECTED MARKET SHARE
(in kilos)

YEAR PROJECTED % Increase of PROJECTED

UNFILLED Market Share MARKET
DEMAND SHARE
2016 272,625 10% 27,263
2017 298,462 12% 35,815
2018 314,606 14% 44,045

This will be the actual market share of MAC Milkfish Aquaculture on its 3 years of

operation which is based on the actual production capacity.

VII. STRATEGIC PLAN

A. MARKETING STRATEGIES

Standard promotional activities will be undertaken all through-

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out its business life until such time that it possesses the financial means to embark on

the more sophisticated strategies that naturally entail sizeable budgetary allocation.

1. A 10% sales discounts will be given to fish stall owners and owners of

restaurants as per pick-up to the fishpond.

2. No delivery charges to be provided to maintain customer loyalty.

3. A schedule of 5:00 am daily deliveries will strictly be followed.

In order to meet this schedule, a delivery vehicle will be bought for business

use.

4. Recipe books having milkfish as part of the ingredients or menus will be

distributed to restaurants.

5. Information dissemination by posting streamers in restaurants and public

markets of Tanza, Gen. Trias and Rosario telling the prospective wholesalers

on where to buy quality milkfish.

6. Through word-of-mouth. Request the present buyers to tell to prospective

buyers about the product.

B. PRICING STRATEGIES

Pricing is a serious marketing decision. Price cannot be changed

as often as the need arises. Once the business quotes its selling price, it could be too

late to make changes as the customers have already made up their mind.
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The proponent considers the following for its price:

a. As per pick-up by customers, the price per kilo is Php 120.00.

b. As per delivery to customers, the price per kilo is Php 150.00

VIII. FINANCIAL ASPECT

The financial aspect of a business plan determines whether the

firm will be viable or not. This is where entrepreneurs will look into to determine how

attractive the idea is and if it is worth their investment.

Financial Assumptions

1. 1% of the current year’s sales will be collected on the following year,

2. The inventory on hand for both supplies and raw materials are maintained at 2%

of current year’s production requirement.

3. Some operating expenses increased by 10% as the level of production increase.

4. Prepaid rent is P24,000, one month advance and one month deposit.

MAC Milkfish Aquaculture

Income Statement
for the 3-year ended December 31, 2018

Sales Revenue 2016 2017 2018

MilkFish Sales Revenue 4,090,050.00 5,372,250.00 6,606,750.00

Less Discounts (409,005.00) (537,225.00) (660,675.00)

Net Sales 3,681,045.00 4,835,025.00 5,946,075.00

Less: Expenses
Organization Cost 20,000.00 - -
Salaries 370,500.00 370,500.00 370,500.00
Benefits 44,966.80 46,166.80 46,166.80
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Professionaf fees 72,000.00 72,000.00 72,000.00
Rent 144,000.00 158,400.00 174,240.00
Utilities 600,000.00 660,000.00 726,000.00
Transportation & Gasoline 150,000.00 165,000.00 181,500.00
Advertising 60,000.00 66,000.00 72,600.00
Printing Expenses 50,000.00 55,000.00 60,500.00
Repairs and Maintenance 100,000.00 110,000.00 121,000.00
Feeds & Supplies 1,636,020.00 2,148,900.00 2,642,700.00
Fingerlings 204,502.50 268,612.50 330,337.50
Taxes & Licenses 142,056.67 142,056.67 142,056.67
Total Expenses 3,594,045.97 4,262,635.97 4,939,600.97
Net Income 86,999.03 572,389.03 1,006,474.03

MAC Milkfish Aquaculture

Statement of Changes in Equity
for the 3-year ended December 31, 2018

2016 2017 2018

Capital Beginning - 586,999.03 1,159,388.07
Investment of Owner 500,000.00
Withdrawal by owner
Add Net Income 86,999.03 572,389.03 1,006,474.03
Capital End 586,999.03 1,159,388.07 2,165,862.10

MAC Milkfish Aquaculture

Statement of Financial Position
for the 3-year ended December 31, 2018

2016 2017 2018

ASSETS
CURRENT ASSETS
Cash in Bank 485,288.08 1,033,315.32 2,016,333.85
Accounts Receivables 40,900.50 53,722.50 66,067.50
Prepaid Rent 24,000.00 24,000.00 24,000.00
Feeds Inventory 32,720.40 42,978.00 52,854.00
Supplies Inventory 4,090.05 5,372.25 6,606.75
 
Total Current Assets 586,999.03 1,159,388.07 2,165,862.10

LONG TERM ASSETS

Equipment (Net)      

Total Non Current Assets - - -

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TOTAL ASSETS 586,999.03 1,159,388.07 2,165,862.10

OWNER'S EQUITY
Owner's Capital 586,999.03 1,159,388.07 2,165,862.10
 
TOTAL LIABILITIES & EQUITY 586,999.03 1,159,388.07 2,165,862.10

MAC Milkfish Aquaculture

Cash Flow Statement
for the 3-year ended December 31, 2018

2016 2017 2018

Cash Inflow from Operations
Collection from Customers 3,640,144.50 4,822,203.00 5,933,730.00

Cash Outflow from Operations

Cash Outflow from Operating Expenses (3,654,856.42) (4,274,175.77) (4,950,711.47)

Net Cash Inflow from Operations (14,711.92) 548,027.23 983,018.53

Cash Outflow from Investing Activities

Cash Outflow from Purchase of Equipments - -

Cash Inflow from Financing Activities

Bank Loan by owner
Owner's Withdrawal
Investment by Owner 500,000.00
Payment of Loan      
Net Cash Inflow from Financing Activities 500,000.00 - -

Net Cash Inflow 485,288.08 548,027.23 983,018.53

Add Prior Year's Cash Balance   485,288.08 1,033,315.32
Ending Cash Balance 485,288.08 1,033,315.32 2,016,333.85

Schedule 1
Cash Outflow from Operating Activities

Organization Cost 20,000.00 - -

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Salaries 370,500.00 370,500.00 370,500.00

Benefits 44,966.80 46,166.80 46,166.80

Professional fees 72,000.00 72,000.00 72,000.00

Rent 168,000.00 158,400.00 174,240.00

600,000.0 660,000.0 726,000.0
Utilities 0 0 0

Transportation & Gasoline 150,000.00 165,000.00 181,500.00

Advertising 60,000.00 66,000.00 72,600.00

Printing Expenses 50,000.00 55,000.00 60,500.00

Repairs and Maintenance 100,000.00 110,000.00 121,000.00

1,668,740.4 2,159,157.6 2,652,576.0
Feeds & Supplies 0 0 0

Fingerlings 204,502.50 268,612.50 330,337.50

Taxes & Licenses 146,146.72 143,338.87 143,291.17

Cash Outflow from Operating Activities 3,654,856.42 4,274,175.77 4,950,711.47