EKANEM SOLOMON JONAH

07066613667

AQUACULTURE

BUSINESS
PLAN

© 2020
EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

Contents
BUSINESS OVERVIEW..........................................................
EXECUTIVE SUMMARY.........................................................
COMPANY OVERVIEW...........................................................
BUSINESS LOCATION.........................................................
LEGAL STRUCTURE:..........................................................
PRODUCTS AND SERVICES................................................
MISSION.............................................................................
VISION................................................................................
NATURE OF THE BUSINESS...............................................
MARKET POTENTIAL.............................................................
OUR COMPETITIVE ADVANTAGE.......................................
KEY CHARACTERISTICS OF THE INDUSTRY....................10
BRIEF FINANCIAL HIGHLIGHTS........................................10
STRATEGIC MANAGEMENT.................................................11
SECTION I: MANAGEMENT.................................................13
INDIVIDUAL & ORGANIZATIONAL DEVELOPMENT...........13
MANAGEMENT STRATEGIES............................................14
OPERATIONS....................................................................14
WATER SUITABILITY.........................................................17
CANNIBALIZATION THREAT..............................................18
MARKETS AND CAPACITY BUILDING................................18
INSURANCE......................................................................18
TAXES.................................................................................19
LICENSES & PERMITS.........................................................19
OPERATIONAL STRATEGIES...............................................19
SECTION II: MARKETING....................................................22
MARKET POTENTIAL........................................................22
DISTRIBUTION STRATEGY................................................23
PRODUCTS/SERVICES.....................................................26
COMPETITIVE ADVANTAGE..............................................26
SALES FORECASTS AND ASSUMPTIONS..........................26
MEASURES OF SUCCESS.................................................27
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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

SECTION III: MONEY..........................................................27

BREAK EVEN ANALYSIS:..................................................27
BOOK KEEPING, RECORD-KEEPING, ACCOUNTING
SYSTEM & PROCESS........................................................27
STOCKING........................................................................28
FINANCIAL WORKSHEETS..................................................30
FINANCIAL MODEL...........................................................31
LOAN AMOUNT....................................................................33
LOAN AMORTIZATION.........................................................34

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

BUSINESS OVERVIEW

Nigeria consumes 1.2 million metric tons of fish every

year, with 85 percent representing 800,000 metric tons

imported, making It one of the world’s largest importers of

fish. Nigeria spends =N=97,000,000,000 on fish importation

every year. This shows that the market for fish in Nigeria is

huge and with population growing at 5.7% annually, the

market will continue on an upward trend.

Statistics has it that in the United States of America

alone, there are about 2,087 licensed and registered Fish

and Seafood Aquaculture company directly responsible for

employing about 10,440 employees and indirectly

responsible for employing roughly 1,339,900. The industry

rakes in a whooping sum of $1billion annually with an

annual growth rate projected at 0.3%. It is important to

state that there are no establishments with a lion share of

the available market in this industry.

If you are looking towards leveraging on the agriculture

industry to generate huge income, then one of your best bet

is to start a fish and seafood aquaculture business. One

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

thing is certain about starting fish and seafood aquaculture

business, if you are able to conduct your market research

and feasibility studies, you are more likely not going to

struggle to sell your fish and seafood because there are

always food processing companies and consumers out there

who are ready to buy from you.

The Fish and Seafood 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.

Increases in the price of seafood, combined with a

healthy export market, have boosted the revenue growth in

this industry. The revenue generation from The Fish and

Seafood Aquaculture industry is projected to grow at an

annualized rate of 0.3% to $1.5 billion.

EXECUTIVE SUMMARY

Solomon Fish Farms is established to contribute to the

fish demand in the country. It is located at Offa Road, Old

Airport Sokoto State. The main economic significant of the

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

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 of Sokoto State and Nigeria at large.

The business is owned and managed by Ekanem

Solomon Jonah who is the Chief Executive Officer of

Solomon Fish Farms. He is experienced in the field of

Aquaculture and has been managing the farm businesses

for many years with significant experience. The demand for

fish in the country is growing geometrically, the opportunity

to expand is necessary 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 that we are establishing a

pioneering fish farm in this locality, we would flood the

whole market with our fish.

Our fish farm is going to be involved in raising and

harvesting finfish (e.g. catfish, trout, tilapia and

minnows), and in the nearest future we look to raise and

harvest Shellfish, ornamental fish, and also engage in

raising and harvesting aquaculture species to augment or

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

replenish wild habitats, and raising and harvesting other

aquaculture (e.g. seaweed, alligators, frogs and turtles).

At Solomon Fish Farms, our customer’s best interest

will always come first, and everything we do will be guided

by our values and professional ethics. We will ensure that

we hold ourselves accountable to the highest standards by

meeting our client’s needs precisely and completely.

The cost benefit analysis of this plan shows that in the

startup year, with a loan of N7,825,000 and over 10,000

fingerlings in stock in the first and projected sales of an

approximate 10,000kg of fish (disregarding that some fish

will reach 2kg in weight to cover for mortalities), we would

make =N=8,000,000 cash flow and over N3,000,000 in net

profit after two years.

COMPANY OVERVIEW

BUSINESS LOCATION

Old Airport Area, Sokoto State.

LEGAL STRUCTURE:

Solomon Fish Farms operates on a sole proprietorship

structure.

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

PRODUCTS AND SERVICES

Industry: Aquaculture; Cat Fish Aquaculture

Solomon Fish Farms is involved in Catfish Aquaculture

(heterobranchus specie), hybrid Catfish (heteroclarias)

hatching, growing, processing, packaging using machines

and best practice and marketing to Nigeria and the

international market. The size of both ponds are 20m by

32.8m. The farm is located in Sokoto State, Nigeria. My

business seeks to address a need and demand for hunger

and malnutrition eradication in Nigeria.

MISSION

To breed and sell healthy fishes for food to my customers.

To achieve large scale environmentally sustainable increase

in supply of fish.

To create access to fish at affordable price for poor

consumers.

VISION

To set the pace in the aquaculture industry, through our

professional and quality offers.

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

NATURE OF THE BUSINESS

Product/service we sell

Solomon Fish Farms is into hatching, growing, processing

and sales of catfish- heterobranchus specie using machines

and best practice. The product and services are rendered to

our customers in Nigeria.

Benefit to buyer

 Large scale production of fresh grow-out table size

catfish and improved hybrid catfish (weight of between

1kg-2kg)

 Neatly smoked and dried fishes.

 Sizes and packs of different weight and flavor.

MARKET POTENTIAL

The market Solomon Fish Farms intends to serve includes:

Households, Restaurants, Cafeteria, Eateries, Food Vendors

(mama put), Fast Food Joints, Hotels, Retailers and

Wholesalers etc.

OUR COMPETITIVE ADVANTAGE

 Cat Fish

 Tilapia

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

 Crayfish

 Titus fish

KEY CHARACTERISTICS OF THE INDUSTRY

Aquaculture is the cultivation and marketing of

aquatic animals or plants in a controlled environment for all

or part of their life cycle. The aquaculture industry in

Nigeria is one of the fastest growing segments of the

agriculture market today. The growth potential for the

aquaculture market is at its strongest level ever. The

demand for fish is increasing due to the ever-increasing

health consciousness of the Nigerian consumer. Per capita

consumption of fish in Nigeria has increased from 6 pounds

per person in 1980 to 11 pounds per person in 2010. 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 fish raised in aquaculture facilities. Not to

mention the increasing demand in our society for locally

grown products.

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

BRIEF FINANCIAL HIGHLIGHTS

Solomon Fish Farms will need to obtain the following cost as

a start-up:

=N=9,526,000 as start-up capital. We expect to be able to

sustain operations for 1 year on the requested amount.

However, after 5 (five) years, the Grand Total of Net profits

will amount to a total of =N=31,476,819.00 with a 30%

expansion rate per annum. With a Break even estimated by

year 2 of operation.

STRATEGIC MANAGEMENT

SWOT Analysis
STRENGTHS WEAKNESSES
 Can engage in wholesaling,  High initial cost for pond
trading and processing renovation and inputs.
concurrently.  Need expert for choice of
 Medium start up and fish species appropriate
operating costs culture.

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

 Convenient bulk sales  Require training on fish

delivered to market rearing and pond
 Can process to smoke fish. management.
 No construction or training  Require expert evaluation
required. of local/site/water and
 Low switching costs in terms constant access for
of products of location. problem diagnosis and
solutions.
 Expensive construction
and operation costs.
OPPORTUNITIES THREATS
 Increased local government  Constrained access to
financial support. inputs.
 Ready market due to  Lack of trained extension
government undersize fish officers.
ban.  Shortage of fingerling/fry
 Branching into input supply to stock ponds.
and/or value addition.  Low land availability.
 Change source of inputs-  Need close proximity to
purchase, rent, or hire. water.
 Can diversify into ornamental  High labor costs.
or bait fish.

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

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 EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

SECTION I: MANAGEMENT

ORGANOGRAM/COMMUNICATION

Managing
Director

Farm
Supervisor

Production Accountant Veterinary

Staff Service

Marketers Contract Secretary/ Apprentice

Labour Administra s/ Trainee
tive Asst.

INDIVIDUAL & ORGANIZATIONAL DEVELOPMENT

Solomon Fish Farms will expose the management and

staff of the company to quarterly seminars, conferences;

professional training courses that will aid each individual

and the entire organization improve and develop their skills

especially in areas of Leadership, Effectiveness,

Accountability and Professionalism.

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

MANAGEMENT STRATEGIES

The manager will ensure that sound management

procedures are put in place in order to control costs, ensure

quality production, quality products used in rendering our

services and provide friendly customer service.

OPERATIONS

Location (Site Selection)

There are three factors which we considered in selecting our

site for a fish pond and Solomon Fish Farms took all 3 into

consideration when selecting a site for the fish ponds. And

they are:

 Water supply

 Soil

 Topography

Water Supply: Water Supply, soil and topography are

important, but water supply is the most important factor

that we consider. Fish depends upon water for all their

needs. Fish need water in which to breathe, to eat, and to

grow and reproduce. If our site has water available year-

round, that site meets its first test easily. If water is not

available all the time but there is some way to store water,
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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

in large tanks, barrels or drums, in depressions, ponds, or

wells for use when the natural water supply is low, then we

will still use the site. The key as far as we are concerned is

that water must be available at all times and in good supply.

At Solomon Fish Farms we make use of bore hole

water as our ponds source of water supply. Bore Hole Water

is the best source of water for a fish pond. Bore Hole Water

has few contaminants and if the bore hole well is a good

one, the water is continuously available. Bore Hole Water

and spring water, however, are both often low in oxygen

content. Fish need to have oxygen in their water to live. This

problem is overcome by:

 Use of oars to stir the water to allow inflow of oxygen.

 Running of small motors to bubble the water in the

pond.

 In addition, winds which are strong enough to ripple

the surface of the water in the pond help the air and

water to mix. Remember: any disturbance of the water

made by man or by nature helps put oxygen into

(aerates) the water.

Soil: The quantity of soil influences both productivity and

water quality in a pond. However, it must also be suitable

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

for dike construction. To determine soil suitability, the two

most important properties we examine are soil texture

(particle size composition) and porosity or permeability

(ability to let water pass through). The pond bottom must be

able to hold water (have a low porosity like clay) and the soil

should also contribute to the fertility of the water by

providing nutrients (soil texture consists of a lot of clay

particles) so the best soil for pond construction contains a

lot of clay.

Topography: The third factor in our site selection is

topography. Topography is a word used to describe the shape of

the land; whether it is flat or hilly, upland or lowland, etc. The

topography of the land determines the kinds of ponds which can

be built. Ponds can be built in valleys or on flat grounds. They

can be square or rectangular, or uneven in shape. They can be

large or small. All of this is determined by topography of the

land.

The most useful topography for fish ponds is that which

allows us to fill and drain ponds using gravity. Ponds built on a

slope, for example, can be drained easily. If ponds are located

on flat land, the pond must be built with a slope inside it so it

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

can be drained by gravity, or it will have to be drained using a

pump.

Equipment

Pond site, good quality water supply, fishing nets, weighing

scale, catfish juveniles, feeds of different sizes for different age

range, live fish transport means, assorted hormones, feed

production equipment, pH meter, sechi disc, mini storage tank,

water pumping machine, large size hose etc.

RISK MANAGEMENT

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

WATER SUITABILITY

The Aquaculture model introduced by Solomon Fish

Farms is a reticulation system, where water circulate runs

constantly into the pond and drain from time to time to

avoid algae and pneumonia. The filters keep the water clean

throughout the production process.

As production takes place in an enclosed environment,

foreign elements are kept out of the plant.

CANNIBALIZATION THREAT

Catfish is cannibalistic by nature, however, Solomon

Fish Farms solution provides for the keeping of the same

size of fish in the same pond. At no given point will bigger

fish be kept in the same tank with smaller fish.

MARKETS AND CAPACITY BUILDING

Catfish, due to its content of protein is the way to go

for food security in the world. Due to modern healthy living

style, catfish is forever going to be the answer in providing

high omega 3 and omega 6 fatty acids. The process of

smoking the fish is also underway.

INSURANCE

 Workers Health Insurance (NSITF)

 Fire or Structural Damage

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

 Business Liability

 Loss & Theft of Building Contents

TAXES

Federal Inland Revenue Service (FIRS), State Inland

Revenue Service (SIRS), CAC (Corporate Affairs

Commission), Catfish Farmers Association Of Nigeria (CFAN)

LICENSES & PERMITS

(EPA permit, state professional license, vehicle license,

food handler’s certification, Assumed Name Act Registration,

etc.)

OPERATIONAL STRATEGIES

Solomon Fish Farms is located in Sokoto State,

Nigeria; the advantage of this location is that we have access

to clean water body that is favorable for fish growing, the

topography is within the acceptable standard scale ratio 2:1

or in terms of percentage (5%), it is close to our suppliers

and customers alike, this makes purchasing of raw

materials for fish production like: feeds, equipment etc. very

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

easy and cheap. Under our production process we have 2

major processes:

 Harvesting

 Processing

Harvesting: The catfish attains marketable size usually

between 5-6 months depending on the richness of the food

supply and the number of catfish/area of the pond at which

they would have attained average weight of 1-2kg.

Harvesting manually using drag net are highly labor

intensive. During harvesting the catfish is manually sorted

and stored in either concrete or fiber tanks for sale. For a

recirculatory system, the outlet is opened and the water and

the catfish flow into a net which allows the water to move

out and the catfish retained in the net. There is no

automation such as vacuum harvesters.

Processing: After harvesting buck (about 60%) of the catfish

is sold live to market mammies (major distributors) at the

farm gate, transported to market where they are purchased

by eateries, bukas (local eateries), and individuals. Others

buy to process by means of smoking and drying using gas,

briquette or charcoal.

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

Below is an illustration of the processing equipment that

will be employed to smoke the fish.

500 Capacity Fish

Dryer

(Gas and Coal Powered)

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

SECTION II: MARKETING

MARKET POTENTIAL

S/N MARKET POTENTIAL LOW BASE HIGH

Step 1 Number of Households in a city 600 900 1,100

Step 2 Number of reachable communities 30 40 50

Step 3 Expected market penetration % 10% 20% 40%

Total Stock of Catfish and 1,800 7,200 22,000

Improved Hybrid Catfish to meet

demand

The market Solomon Fish Farms intend to serve

includes: Households, Restaurants, Canteens, Cafeterias,

Eateries, Food Vendors (Mama put), Fast Food Joints,

Hotels, Retailers and Wholesalers etc.

Our marketing Strategy includes:

 Digital Marketing

 Door-to-door marketing

 Customer Referals

 Social media marketing ( facebook, whatsapp, linkedIn,

Instagram etc.)

 Electronic marketing (TV, radio, jingles etc.)

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

 Print media marketing (newspaper, magazines,

catalogues etc.)

 Sign boards and billboards

 Printing of flyers

There are over 170 million people in Nigeria ready to access

our packaged products for food consumption, raw materials

for confectionery industry and the international market are

waiting for more supplies.

DISTRIBUTION STRATEGY

For the fresh catfish, the wholesale buyers come to the

farm gate to buy. They could sell to minor distributors who

further sell to the retailers. The individuals and retailers

who can afford transportation are also allowed to buy at the

farm gate. The major markets are located at the urban

centers. With respect to packaging, the fresh catfish are

packed into bows (30-40kg/basin), covered with jute bags

and taken to the market.

The smoked and dried ones are packed in cartons,

covered by non-absorbent papers, tied and transported to

major urban centers. Those processing with intention of

meeting international standard pack the dried fish in nylon.

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

The nylon contains 2-3kg that are further kept in cartons

which are again stored in master cartons (10-20kg)

Other distribution strategy of Solomon Fish Farms include:

 Sales to a Processing Plant of Cooperative

 Contract Sales

 Phone Sales

 Trade Shows (Licensure Required)

 Internet Sales (Licensure Required)

 Sales off the Farm (Licensure Required)

 Sales on the Farm

 Other

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

Target Market & Trade Area

Type of customer % of Business

 Processing 15%
Plant/Cooperative
 Retail Customer 40%
 Restaurant and Grocery 10%
 Organizations 30%
 Other 5%

Total 100%

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

PRODUCTS/SERVICES

Industry: Aquaculture, Catfish and Heteroclarias Farming

Solomon Fish Farms is involved in catfish Aquaculture

(heterobranchus specie), hatching, growing, processing,

packaging using machines and best practice and marketing

to Nigeria and the international market.

COMPETITIVE ADVANTAGE

 The quality of our fishes.

 Our prompt delivery service as people can order

their bulk purchase of fish and its derivative online.

 Our excellent customer care service.

SALES FORECASTS AND ASSUMPTIONS

(See the financial model section Below)

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

MEASURES OF SUCCESS

Number of paying customers, Number of customers/day or

month, expansion of trade area, product return rate etc

SECTION III: MONEY

BREAK EVEN ANALYSIS:

We have made careful economic planning as we have made

a list of all our expected income and expenses which include

feeding, fingerlings, labor, fuel, electricity, equipment, repair,

interest on borrowed money, pond construction, feed bins, etc.

Generally, we have estimated the amount of fish we will produce

and the price we will receive for them.

Based on the above and having designed a financial model

for our business, we have realized that we will be able to break

even by the 2nd year of commencing business operation.

BOOK KEEPING, RECORD-KEEPING, ACCOUNTING SYSTEM

& PROCESS

Solomon Fish Farms has designed an effective recording

keeping system that enables us to closely estimate the number

of fish and the weight of fish in every pond at any given time so

as to enable us successfully grow the fishes. If the weight of fish

in a pond is underestimated, not enough food will be fed,

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

resulting in poor growth, poor feed conversions, and increased

time required to get the fish to harvestable size. If the weight of

fish in a pond is overestimated, the result will be overfeeding,

poor feed conversions, and very likely, severe water quality

problems. An important reason for keeping good records is that

many lending institutions require good records before they will

lend money. Also, without good records you don’t know if you

are making or losing money, and you can’t identify problem

areas.

There are available computer programs for catfish record

keeping. Manual forms are also effective:

1) Daily Feeding Record: We Record the amount fed daily to

each pond on this form. At the end of the week total the

amount fed for the week.

2) Weekly Pond Record: We Record date of stocking, stocking

rates and weights, amount of food fed weekly, weekly

weight gain and weight of fish harvested for each pond.

Other information concerning disease treatments, weed

control etc. can be noted in the remarks section.

STOCKING

Fingerlings six inches or longer will be stocked into grow out

ponds with the goal of producing a market-sized fish. The

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number of fish stocked at this final stage in the production cycle

varies widely. Factors we will consider in determining our

stocking rate include amount of time that the supervisor can

spend with the fish, desired fish size at harvest, maximum daily

feeding limit, availability of water and aeration equipment, and

length of culture period. With these factors in mind, stocking

rates usually vary from 1,000 to 6,000 fish per acre of water.

Annual production will range from 1,000 pounds per acre in

watershed ponds without aeration to about 8,000 pounds per

acre in levee ponds supplied with pumped Bore Hole Water and

aeration. We will grow fish crop successfully at a moderate risk

level.

Marketable food fish can range from three-fourths to two

pounds or more, depending on the customer. The production

cycle from spawning to marketable fish can range from 16 to 24

weeks. Once most of the fish reach marketable weight, they will

be harvested several times during the year, grading or “topping

off” the largest, marketable sized ones.

The stocking rate will be based on the maximum safe and

economical feeding rate, the desired size of fish at harvest and

the food consumption rate.

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EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

The size of fish desired at harvest will be acceptable to

customers and economical to produce.

FINANCIAL WORKSHEETS

Financial Projections – Three (3) year projection of financial

data is suggested in most aquaculture loan requests but we will

make 5 years financial projection as seen in the financial model

below.

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FINANCIAL MODEL

PARTICULARS 1st Year 2nd Year 3rd Year 4th Year 5th Year Total (N)

Fingerlings 50000
10,000 10,000 10,000 10,000 10,000
    0
- - - -
            0

Total 50000
10,000 10,000 10,000 10,000 10,000
            0

CASH FLOW            
Sale of each kg at N800 ₦8,000,000.00 ₦8,000,000.00 ₦8,000,000.00 ₦8,000,000.00 ₦8,000,000.00 ₦40,000,000.00
₦ ₦ ₦ ₦ ₦ ₦
  - - - - - -
TOTAL ₦8,000,000.00 ₦8,000,000.00 ₦8,000,000.00 ₦8,000,000.00 ₦8,000,000.00 ₦40,000,000.00
             

ASSET EXPENSES            
Cost of obtaining the
fingerlings at N20 each ₦ 200,000.00 ₦ 200,000.00 ₦ 200,000.00 ₦ 200,000.00 ₦ 200,000.00 ₦ 1,000,000.00
  ₦ 0.00 ₦ 0.00 ₦ 0.00 ₦ 0.00 ₦ 0.00 ₦ 0.00
TOTAL ₦200,000.00 ₦200,000.00 ₦200,000.00 ₦200,000.00 ₦200,000.00 ₦1,000,000.00
             
EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

FIXED/RECURRENT
EXPENSES            
5 Collapsible Pond Purchase, ₦ ₦ ₦ ₦ ₦ ₦
Setup and Pipping 1,400,000.00 60,000.00 60,000.00 60,000.00 60,000.00 1,640,000.00
3 Staff Salary (30,000/head ₦ ₦ ₦ ₦ ₦ ₦
for 6 month) 540,000.00 540,000.00 540,000.00 540,000.00 540,000.00 2,700,000.00
₦ ₦ ₦ ₦ ₦ ₦
Insurance 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 25,000.00
Record
Keeping/Stationary/Comput ₦ ₦ ₦ ₦ ₦ ₦
er 120,000.00 30,000.00 30,000.00 30,000.00 30,000.00 240,000.00
₦ ₦ ₦ ₦ ₦ ₦
Security 240,000.00 240,000.00 240,000.00 240,000.00 240,000.00 1,200,000.00

Solar Water (Bore Hole and ₦ ₦ ₦ ₦ ₦ ₦

Overhead Tank) 1,770,000.00 10,000.00 10,000.00 10,000.00 10,000.00 1,810,000.00

1 units of 500 capacity fish

dryer/smoker (coal, ₦ ₦
briquette and gas) 450,000.00 - - - - 450,000.00
Feeding at 9.1 tons per ₦ ₦ ₦ ₦ ₦ ₦
10,000 fishes per season 3,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00 15,000,000.00
Veterinary services and ₦ ₦ ₦ ₦ ₦ ₦
drugs 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 250,000.00
₦ ₦ ₦ ₦ ₦ ₦
Running Cost 250,000.00 150,000.00 150,000.00 150,000.00 150,000.00 850,000.00
₦ ₦ ₦ ₦ ₦ ₦
TOTAL 7,825,000.00 4,085,000.00 4,085,000.00 4,085,000.00 4,085,000.00 24,165,000.00
ANNUAL LOAN REPAYMENT ₦ ₦ ₦ ₦ ₦ ₦

33
EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

1,565,000.00 1,565,000.00 1,565,000.00 1,565,000.00 1,565,000.00 7,825,000.00

TOTAL EXPENSES ₦8,025,000.00 ₦4,285,000.00 ₦4,285,000.00 ₦4,285,000.00 ₦4,285,000.00 ₦25,165,000.00

NET PROFITS -₦25,000.00 ₦3,715,000.00 ₦3,715,000.00 ₦3,715,000.00 ₦3,715,000.00 ₦14,835,000.00

LOAN AMOUNT

From the analysis done in the financial model above, the total estimated amount that

is required to fully establish Solomon Fish Farms Aquaculture in illustrated in details

to amount to a total of =N=7,825,000.00 (seven million, eight hundred and twenty

five naira).

34
EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

LOAN AMORTIZATION

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Monthly Monthly Monthly Monthly Monthly
ITEMS Deposit= Deposit= Deposit= Deposit= Deposit=

MONTHLY DEPOSIT ₦ ₦ ₦ ₦ ₦
AMOUNT> 136,937.50 143,784.38 150,973.59 158,522.27 166,448.39

OPENING DEBT (5% LOAN ₦ ₦ ₦ ₦ ₦

CHARGES INCLUSIVE) 8,216,250.00 6,901,650.00 5,435,049.38 3,804,534.56 1,997,380.65

₦ ₦ ₦ ₦ ₦
JANUARY 8,079,312.50 6,757,865.63 5,284,075.78 3,646,012.29 1,830,932.26

₦ ₦ ₦ ₦ ₦
FEBRUARY 7,942,375.00 6,614,081.25 5,133,102.19 3,487,490.02 1,664,483.87
₦ ₦ ₦ ₦ ₦
MARCH 7,805,437.50 6,470,296.88 4,982,128.59 3,328,967.74 1,498,035.48
₦ ₦ ₦ ₦ ₦
APRIL 7,668,500.00 6,326,512.50 4,831,155.00 3,170,445.47 1,331,587.10
₦ ₦ ₦ ₦ ₦
MAY 7,531,562.50 6,182,728.13 4,680,181.41 3,011,923.20 1,165,138.71
₦ ₦ ₦ ₦ ₦
JUNE 7,394,625.00 6,038,943.75 4,529,207.81 2,853,400.92 998,690.32

35
EKANEM SOLOMON JONAH FARM (TEL: 07066613667)

₦ ₦ ₦ ₦ ₦
JULY 7,257,687.50 5,895,159.38 4,378,234.22 2,694,878.65 832,241.94
₦ ₦ ₦ ₦ ₦
AUGUST 7,120,750.00 5,751,375.00 4,227,260.63 2,536,356.38 665,793.55
₦ ₦ ₦ ₦ ₦
SEPTEMBER 6,983,812.50 5,607,590.63 4,076,287.03 2,377,834.10 499,345.16
₦ ₦ ₦ ₦ ₦
OCTOBER 6,846,875.00 5,463,806.25 3,925,313.44 2,219,311.83 332,896.77
₦ ₦ ₦ ₦ ₦
NOVEMBER 6,709,937.50 5,320,021.88 3,774,339.84 2,060,789.55 166,448.39
₦ ₦ ₦ ₦ ₦
DECEMBER 6,573,000.00 5,176,237.50 3,623,366.25 1,902,267.28 -
₦ ₦ ₦ ₦ ₦
CLOSING DEBT 6,573,000.00 5,176,237.50 3,623,366.25 1,902,267.28 -

36
Assumptions:

 In the financial analysis the following was assumed.

 That feed supply will be consistent and that growth ratios

will remain intact.

 All transactions will be made on cash and delivery basis.

 Fish sales will go up by 50% every year.