Aquaculture: Business Plan

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
2
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
3
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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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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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
6
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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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.
8
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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 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.
10
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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 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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13
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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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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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

16
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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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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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

19
 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

20
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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Below is an illustration of the processing equipment that
will be employed to smoke the fish.
500 Capacity Fish
Dryer
(Gas and Coal Powered)
22
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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 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.

24
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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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%
26
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)
27
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,

28
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

29
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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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

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 ₦ ₦ ₦ ₦ ₦ ₦
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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).
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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
₦ ₦ ₦ ₦ ₦
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.

Aquaculture: Business Plan

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Aquaculture: Business Plan

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EKANEM SOLOMON JONAH

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

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

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

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.

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

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

replenish wild habitats, and raising and harvesting other

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