Feasibility Study BSF II A Tilapia Farming Leizon S Arsanique

Republic of the Philippines
Laguna State Polytechnic University

ISO 9001:2015 Certified
Province of Laguna
Level I Institutionally Accredited
TITLE PAGE
A FEASIBILITY STUDY ENTITLED
El pez y el estanque de la familia Arsanique

“The best family for fish farming”
Submitted by:
Arsanique, Leizon S.
Calamba, Laguna, 4028
[JULY 13, 2022]

Province of Laguna
TABLE OF CONTENTS
1. Executive Summary 4
1.2 Problem statement

2.2 Project’s objective
3.2 Implementing organization
4.2 Key project activities
5.2 Total project budget
2. Context 5
1.2 Description
i. Social
ii. Economic
iii. Political
iv. Cultural
3. Description of Product and Services 7
4. Product/ Service Marketplace 8

;
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Province of Laguna
TABLE OF CONTENTS
5. Marketing Strategy 10
i. Traditional Method
ii. Technology Consideration
6. Organization and staffing 11
7. Schedule 12
8. Financial Projections 13
8.1 List of Expenses
8.2 Stocking Density & Pond Size
8.3 Net Income
8.4 Assumptions
9. Findings and Recommendations 17
i. Technology
ii. Marketing
iii. Organizational
iv. Financial
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Province of Laguna
EXECUTIVE SUMMARY
El pez y el estanque de la familia Arsanique is a family business that focuses

on growing of tilapia for market. The business offers healthy and quality grew out tilapia
from the pond. The customers can buy market size tilapia in bulk or retail; thus, every
possible customer will be satisfied. The owner also hires experienced fish farmer, and the
farmer will undergo seminars and training from experts and graduates, to secure the
knowledge of every farmer, so that the quality of cultured fishes will be maintained.
“El pez y el estanque de la familia Arsanique” will follows the necessary

processes in order to operate the farm and produce market size tilapia for the market.
Before the business operate, it is necessary for it to have legal papers issued by the
government for it to operate legally. With this kind of business having one hectare of land
for fish farming alone will require legal issues like land use act, water act. And
environment act to operate. El pez y el estanque de la familia Arsanique will be located at
San Roque Arbol, Lubao City Pampanga. Tilapia farming is one the two industries known in
the Pampanga. Pampanga is the tilapia capital of the country because of its high production
reaching 214,210.12 metric tons in 2015. There are lots of possible customer resides in
this area and also the location is best in terms of topography. The lands are suitable for
pond culture even the water source and runways are not limited. The location also is
popular for every middle man and bulk reseller that distribute tilapia in the market.
The tilapia that will be culture is Oreochromis niloticus. Nile tilapia (Oreochromis
niloticus) is the most preferred cultured fish species in many tropical and subtropical
countries of the world. They are of commercial importance in aquaculture because they
are highly resistant to diseases, exhibit rapid growth, efficient feed conversion, are easy to
breed, and have good consumer acceptance.
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Province of Laguna
i. Social
“El pez y el estanque de la familia Arsanique” will sell market size
tilapia after months of culture in different people. It can be a retailer, bulk
reseller or farm breeder. The business will be open for walk-in buyers and
visitors. The farm will provide quality market size tilapia. The business
will sell the tilapia in reasonable price for bulk and also for retail to
maintain the good relationship with the customers and can keep up in the
competitions. The tilapia will be endorsed before the announced date of
harvest.
ii. Economic
“El pez y el estanque de la familia Arsanique” is a family business that
offers good quality and affordable market size tilapia in every possible
customer from different area inside and even outside of the province. The
business will provide affordable price for tilapia, so the business can keep
up against the competitors and provide jobs locally.
iii. Political
“El pez y el estanque de la familia Arsanique” will follows the necessary
processes in order to operate the farm and produce market size tilapia for
the market. Before the business operate, it is necessary for it to have legal
papers issued by the government for it to operate legally. With this kind of
business having one hectare of land for fish farming alone will require
legal issues like land use act, water act. And environment act to operate.
The business should comply to be allowed for using the land for private
purpose. Also, the business permit is required in this business, the bigger
the scope and operation the higher the tax should be paid.
iv. Cultural
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Province of Laguna
You're likely aware that Pampanga is the Philippines' culinary capital

home to a diverse local cuisine and dishes that are famous all over the
country. Pampanga, being the tilapia capital of the country. Pond farming
of tilapia began here in the 1950s, following introduction of the
Mozambique tilapia (Oreochromis mossambicus), which did not perform
well. Nile tilapia (O. niloticus) was first introduced in the early 1970s and
hailed by farmers and consumers as a much better fish for farming. The
Pampanga also has the Pampanga River that can be a good run off and
water reserve for fish farming. In a survey of 124 tilapia farming
households and 124 nonadopter households for this study indicated that
tilapia is an important fish in the diets of tilapia farming households and
nonadopters alike. The main reasons given for eating tilapia were taste,
freshness, availability, and low price. Other reasons included the presence
of few fish bones,15 familiarity with the fish, and perception of a healthy
alternative to meat. Thus, tilapia is an important species that can be
produced in a farm.
6
Province of Laguna
DESCRIPTION OF PRODUCT AND SERVICES
El pez y el estanque de la familia Arsanique is a family business that focuses on

growing of tilapia for market. The business offers healthy and quality grew out tilapia from
the pond. The customers can buy market size tilapia in bulk or retail; thus, every possible
customer will be satisfied. The owner also hires experienced fish farmer, and the farmer
will undergo seminars and training from experts and graduates, to secure the knowledge
of every farmer, so that the quality of cultured fishes will be maintained.
The business assures that the fish that sells are well-maintained and cultured
properly, so that the customers can have more profit into it when they resell. El pez y el
estanque de la familia Arsanique assures the quality of the cultured tilapia, the fingerlings
also undergo in appropriate method before dispersing into ponds to prevent losses from
mortality. The business will start on acquiring tilapia fingerlings from different breeders,
for starter this part is to observe whose breeding facility produce healthier and quality
fingerlings. The tilapia that will be culture is Oreochromis niloticus. Nile tilapia
(Oreochromis niloticus) is the most preferred cultured fish species in many tropical and
subtropical countries of the world. They are of commercial importance in aquaculture
because they are highly resistant to diseases, exhibit rapid growth, efficient feed
conversion, are easy to breed, and have good consumer acceptance.
Nile tilapia (Oreochromis niloticus)
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Province of Laguna
PRODUCT/SERVICE MARKETPLACE
El pez y el estanque de la familia Arsanique will be located at San Roque Arbol,

Lubao City Pampanga. Tilapia farming is one the two industries known in the Pampanga.
Pampanga is the tilapia capital of the country because of its high production reaching
214,210.12 metric tons in 2015. There are lots of possible customer resides in this area
and also the location is best in terms of topography. The lands are suitable for pond culture
even the water source and runways are not limited. The location also is popular for every
middle man and bulk reseller that distribute tilapia in the market.
The location is much more accessible because, aside from the expressways, national
highways also serve the province. The province of Pampanga is a part of the great plain
extending from Manila Bay north of the gulf of Lingayen, Pangasinan. The owner will not
have much difficulties in establishing the business in Pampanga. The topography is
suitable for fish farming and pond constructions. The whole area of the family business is
4.05 sq km (1.56 sq km) with distance of one hectare.
The tilapia will be cultured in two different ways. First is the monosex culture for
grow out. Monosex is the type of culture where the male is separated from female, though
this process normally results in 40-50 percent loss even the skilled workers are making
errors in this process. But the practice of separating the female to the males are proven to
be effective to prevent wild reproduction that affect the yield of the farm. Second, feeding
hormones (methyltestosterone) to the larvae between the second and sixth week after
hatching to reverse females into males. Larvae have to be given specially prepared
artificial feeds containing the hormone for about six weeks, excluding all-natural food. The
two processes are used for preventing the reproduction inside the grow out pond that can
affect the growth of the tilapia. The two different ways that will be adopted in the
business is expected to work. The land for the business will be divided in three stations.
First is the grow out station, where the fingerlings will be raised from fingerlings to market
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Province of Laguna
size. Second is the pumping station, where the water is pumped from the pump house to
fill the ponds. Third is the storing station, where the tilapia will be stationed temporarily
before marketing or dispersing, this also were the packaging and conditioning of tilapia
happens.
In terms of competition, there are so many possible customers like local fisherman,
nearby fish farm, and pens farmer in other area. Thus, competitions always happen in
business and there’s a lot of ways to win in competition. The El pez y el estanque de la
familia Arsanique will also innovate in every possible way to produce large amount,
palatable and high-quality tilapia.
Area of El pez y el estanque de la

familia Arsanique in Pampanga
MARKETING
STRATEGY
Here are some of the

strategies we use in order to promote our business.
I. Traditional Method
 Sign board: El pez y el estanque de la familia Arsanique will start

making a sign board outside the farm for the customers. The
method is prepared for the possible customer who are not familiar
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Province of Laguna
in the new fa. The farm will be open for inquiries for every customer
and this will serve as introducing the farm in local area, thus it helps
the owner to make it popular in the area. The sign boards contain
the information like farm name, farm address cultured fish,
available sizes of for sale tilapia, contact number and also ho should
they look for inquiries. This method is to make it easier for the
customer to interact with the farm and to make it popular.
II. Technology Consideration
 Social Media (Recommendations): El pez y el estanque de la familia

Arsanique marketing plan will consider social media by posting ads
in social media platforms to endorse our cultured tilapia. The
objective of this kind of marketing is to gain acknowledgment in the
local by selling the market size tilapia to customers and endorsing
our farm to other potential customers online. The endorsement
through social media will be posted a week before harvest day, to
prepare the customers and also to prevent loss from unsold tilapia.
By advance posting in social media, the preparation will be done
quickly if there are customers. The post indicate also that the tilapia
can be bought in bulk or retail to make it more available to every
customer.
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Province of Laguna
ORGANIZATION AND STAFFING
Staffing Position:
The owner is the one who owns the business, and also, act as a manage. Business
owners are in charge of the businesses’ development, stability, direction, and day-to-day
operations. aims to increase sales, profit, smoothen the movement of workers and long-
term net worth by constantly achieving better results and performance with the same
amount of time, effort, activities, people, and money spent in the business. Second, to stand
in rising competition, consistently cut costs, neutralize or remove vulnerabilities, risks, and
dangers, and establish a strategic competitive advantage. The owner will also hire one
Aquaculture technician for field assessment of the status of aquaculture systems (water
quality parameters, fish quality, seed/feed quality), and creation of report summarizing
findings. Conduct training sessions with farmers on proper fish welfare practices. The
aquaculture technician will serve as teacher and guide for the farmers that will assist the
business. The role of the technician is to invoke knowledge in every aspect of fish farming
into the farmers. The farm will have eight fish farmers for starter to work dependently in
the owner and aquaculture technician. Fish farmers, are the people who are experienced
in fish farming and knowledgeable in the business process. Thus, any experience will be a
lesson for every staff in the farm. The fish farm will hire two security guard that will guard
the gate of the farm. Security guard will guard the main gate of the fish farm to avoid
trespasses that will harm the business and to monitor what comes in and what comes out
in the farm.
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Province of Laguna
SCHEDULE
The “El pez y el estanque de la familia Arsanique” has been scheduled to operate and
open for visiting customers every Monday to Friday from 7:30am-4:00 pm.
Meanwhile, our operation in Saturday and Sunday is not totally closed in workers, it
is only closed for visiting customers and the only worker that is present in that day,
are the fish farmer that are assigned in feeding the tilapia every 8:00am and
4:00pm. While the guards schedule will operate in different basis. Here is the
schedule for El pez y el estanque de la familia Arsanique daily operations.
No. of workers No. of workers

Week no. (Monday to (Saturday to
Friday) Sunday)
1-4 Aquaculture
technicians- 1 Security
guards- 2
Security
guards- 2 Fish farmers-
2
Fish farmers-
8
1-
Table 1. Number of weeks and workers
GUARDS DUTY HOURS

BUSINESS HOURS DAY TIME
DAY TIME Monday-Sunday 6:00am to 6:00pm
Monday- 7:30am to And
6:00pm to 6:00am
Sunday 4:00pm
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Province of Laguna
Table 2. Business Hours Table 3. Guards’ duty Hours
FINANCIAL PROJECTIONS
8.1 List of Expenses
SPECIES QUANTITY PRICE TOTAL AMOUNT

(Per Pond)
RP1. Nile tilapia (O. 324,000 Fingerlings P 1.00/fngrlns P 324,000.00
niloticus) Size: 10/12
RP9.Nile tilapia (O. 324,000 Fingerlings P 1.00/fngrlns P 324,000.00
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Province of Laguna

RP913.Nile tilapia 324,000 Fingerlings P 1.00/fngrlns P 324,000.00
(O. niloticus) Size: 10/12
TOTAL COST OF FINGERLINGS FOR ALL THE PONDS: P 6,480,000. OO
Table 4. List and amount of fingerlings
STAFF QUANTITY SALARY TOTAL AMOUNT

(One year)
Aquaculture 1 770 P 277, 200. 00
Technician
Fish Farmer 8 300 P 864,000. 00
Security Guards 2 500(morning duty) P 180,000. 00
600(night duty) P 216, 000. 00
TOTAL COST OF SALARY PER YE FOR ALL THE EMPLOYEE: P 1,537, 200. 00
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Province of Laguna
Table 5. List and amount of salary of the employee
EQUIPMENT QUANTITY PRICE TOTAL AMOUNT

Air pump 220v 1 P 10,415. 00 P 10,415. 00
150hz
Mitsubishi l300 1 P 813,000. 00 P 813,000. 00
Water pump 2 P 27,858. 00 P 55,716. 00
Seine Net 2 (12m x 4m) P 3,000.00 P 6,000.00
Scoop net 8 P 250.00 P 2,000.00
Polyethylene 3 P 5,000.00 P 15,000.00
Containers
Muck Tub 5 P 3,000.00 P 15,000.00
Diesel 25L P 89.00 P 2,225.00
Tateh Pre-starter 3sacks P 1,544.00/25kg P 4,632. 00
Tateh starter 6sacks P 900.00/20kg P 5,400. 00
Tateh grower 10sacks P 880.00/20kg P 8,800. 00
Tateh finisher 15sacks P 1,444.00/25kg P 21,660. 00
TOTAL COST OF EQUIPMENTS: P 959,848. 00
Table 5. List and amount of equipment
There are six tables that indicates the schedule, business hours, guard’s duty,
fingerlings, salary and equipment that are needed in the business to determine the budget
for the whole production. The tables discussed the quantity and cost of every subject with
the total amount of cost that will be used.
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Province of Laguna
8.2 Rearing Pond size (RP) Stocking Density (per Pond)
Stocking ratio 1m2 :2 fingerlings RP=80% of total area (162,000 m2)
Area: 4,050,000 m2 (4.05 km2)Distance: 10 km
20 Rearing ponds are wanted by the owner, Survival rate 90%, 3 pcs Tilapia
per kilo, P 50.00 per kilo and every 6 months will harvest.
RP=4,050,000 m2 ×.80=3,240,000m2
RP=3,240,000 m2 ÷ 2 0=162,000 m2
Stocking Density=162,000 × 2=324,000
8.3 Net Income (One year)

Net Income=sales−expenses
The computation below is to determine the Net income of “El pez y el

estanque de la familia Arsanique” for one year.
Price computed
Expenses: P 8,976,848.00
TOTAL COST OF FINGERLINGS FOR ALL THE PONDS: P 6,480,000. OO

(6,480,000fingerlings)
TOTAL COST OF SALARY PER YEAR FOR ALL THE EMPLOYEE: P 1,537, 200. 00
TOTAL COST OF EQUIPMENTS: P 959,848. 00
Expenses=6 , 480,000. OO+1,537 , 200. 00+959,848. 00=8,976,848
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Province of Laguna
Income (One year): P 194,400,000.00
Harvested tilapia (1st 6 months): 5,832,000 pieces

Harvested tilapia (2nd 6 months): 5,832,000 pieces
6,480,000 ×.90=5,832,000
5,832,000 ×2=11,664,000
Total: 11,664,000 pieces
Kilo=11,664,000 ÷ 3=3,888,000
Overall price=3,888,000 ×50=P194,400,000
To find the total net income, the total income was subtracted to the total
expense in the fish farm.
NET INCOME=194,400,000−8,976,848=P185 , 423,152
The total income was determined by computing for the total expenses in equipment,
fingerlings cost and employee salary and for the total price of harvested tilapia. The total
expenses for the equipment, fingerlings cost and employee salary is P 8,976,848.00. The
total income of the products assuming that the projected kilograms were all sold in the
marketplace, the total value of the income were P 194,400,000.00. The total income is then
subtracted to the total of expenses to get the net income for the harvested tilapia. The total
net income of the “El pez y el estanque de la familia Arsanique” business as indicated
above is P 185,423,152.
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Province of Laguna
8.4 Assumptions
ASSUMPTION 1 ASSUMPTION 2
No. of harvested tilapia -11,664,000 pieces ÷ No. of harvested tilapia -11,664,000 pieces ÷
3 pcs per kilo 3 pcs per kilo
No. Of kilo per year = 3,888,000 kilos No. Of kilo per year = 3,888,000 kilos
Price Assumption 1 = 60 pesos per kilo Price Assumption 2 = 45 pesos per kilo
3,888,000 kilos x 60 pesos = 233,280,000 Php 3,888,000 kilos x 45 pesos = 174,960,000 Php
Net income: 233,288,000 – 8,976,848 = Net income: 174,960,000 – 8,976,848 =
224,303,152 Php 165,983,152 Php
ASSUMPTION 3
No. of harvested tilapia -11,664,000 pieces ÷
3 pcs per kilo
No. Of kilo per year = 3,888,000 kilos
Price Assumption 3 = 40 pesos per kilo
3,888,000 kilos x 40 pesos = 155,520,000 Php

Net income: 155,520,000 – 8,976,848 =
146,643,152 Php
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Province of Laguna
FINDINGS AND RECOMMENDATIONS
i. Technology
Based on the technology consideration of the business, it concludes that
considering technology for the marketing of the “El pez y el estanque de la
familia Arsanique” shows great results in acknowledgment of the product to the
public or community of Lubao Pampanga. With the technology consideration as a
marketing strategy, it will maintain a good name for the business as the "The
best family for fish farming" and also provide recommendations for other
potential customers within the area.
ii. Marketing
The marketing strategy of the business shows great results not just in
acknowledgement caused by the customer's recommendation to other potential
customers, such as individuals that haven’t yet checked the farm. By only using
people's influence in the area, recommending the cultured tilapia to other
relatives. Without the use of any expensive materials, which will add to the
investment cost of the business, the return on investment will be greater than
spending too much money on the expensive materials.
iii. Organizational
By integrating a clear leader and ensuring that every team member commits
to their duties in successful collaboration and for the success of the business,
proper team structure may foster teamwork. Additionally, it allows your team to
collaborate and exchange ideas, which lessens stress for everyone and enables
them to be diligent and thorough in their work completion. This will help them
fast reach their sales objectives. Because cooperation cannot take place in the
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Province of Laguna
absence of a properly defined team, it is crucial to identify and understand the

structure of teams.
iv. Financial
The net income was determined by computing for the total expenses in
equipment, fingerlings cost and employee salary and for the total price of
harvested tilapia. The total expenses for the equipment, fingerlings cost and
employee salary is P 8,976,848.00. The total income of the products assuming
that the projected kilograms were all sold in the marketplace, the total value of
the income were P 194,400,000.00. The total income is then subtracted to the total
of expenses to get the net income for the harvested tilapia. The total net income
of the “El pez y el estanque de la familia Arsanique” business as indicated above
is P 185,423,152. Additionally, it can guarantee a business has enough cash flow to
cover operational costs and short-term debt commitments.
20

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Republic of the Philippines

Laguna State Polytechnic University

A FEASIBILITY STUDY ENTITLED

El pez y el estanque de la familia Arsanique

Calamba, Laguna, 4028

[JULY 13, 2022]

1.2 Problem statement

3. Description of Product and Services 7

4. Product/ Service Marketplace 8

6. Organization and staffing 11

9. Findings and Recommendations 17

El pez y el estanque de la familia Arsanique is a family business that focuses

“El pez y el estanque de la familia Arsanique” will follows the necessary

You're likely aware that Pampanga is the Philippines' culinary capital

DESCRIPTION OF PRODUCT AND SERVICES

El pez y el estanque de la familia Arsanique is a family business that focuses on

Nile tilapia (Oreochromis niloticus)

El pez y el estanque de la familia Arsanique will be located at San Roque Arbol,

Area of El pez y el estanque de la

Here are some of the

 Sign board: El pez y el estanque de la familia Arsanique will start

II. Technology Consideration

 Social Media (Recommendations): El pez y el estanque de la familia

ORGANIZATION AND STAFFING

No. of workers No. of workers

Table 1. Number of weeks and workers

GUARDS DUTY HOURS

Table 2. Business Hours Table 3. Guards’ duty Hours

8.1 List of Expenses

SPECIES QUANTITY PRICE TOTAL AMOUNT

niloticus) Size: 10/12

STAFF QUANTITY SALARY TOTAL AMOUNT

Table 5. List and amount of salary of the employee

EQUIPMENT QUANTITY PRICE TOTAL AMOUNT

8.2 Rearing Pond size (RP) Stocking Density (per Pond)

Stocking ratio 1m2 :2 fingerlings RP=80% of total area (162,000 m2)

Area: 4,050,000 m2 (4.05 km2)Distance: 10 km

Stocking Density=162,000 × 2=324,000

8.3 Net Income (One year)

The computation below is to determine the Net income of “El pez y el

TOTAL COST OF FINGERLINGS FOR ALL THE PONDS: P 6,480,000. OO

Expenses=6 , 480,000. OO+1,537 , 200. 00+959,848. 00=8,976,848

Income (One year): P 194,400,000.00

Harvested tilapia (1st 6 months): 5,832,000 pieces

Total: 11,664,000 pieces

Overall price=3,888,000 ×50=P194,400,000

NET INCOME=194,400,000−8,976,848=P185 , 423,152

No. Of kilo per year = 3,888,000 kilos

Price Assumption 3 = 40 pesos per kilo

3,888,000 kilos x 40 pesos = 155,520,000 Php

FINDINGS AND RECOMMENDATIONS

absence of a properly defined team, it is crucial to identify and understand the

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