AQUACULTURE BUSINESS IN UGANDA

Introduction
Aquaculture is the growing of fish and any other water creatures. It is a foreign culture in our society. There has been a lot of encouragement to local communities to get involved but it has not yet formed grip. However, despite the initial capital outlay, this type of farming would generate some good financial earning to the farmers.
The business risk involved is healthy and safety related risks surrounding the manufacturing and processing. However, this is can be solved by employing food scientists and adhering a strict regime of health and safety.
The Business Idea estimates fixed capital of US$14,428 and operating costs of US$4,576,534 generating revenue of US$ 295,200 in the first year of operation
Requirements
This business venture requires land with a permanent swamp preferably owned by the promoter. Construction of ponds is better done by hiring experts in that field. Once ponds are stocked, then you need wheelbarrows, spades, slashers and hoes for day to day operations and a seing net for harvesting.

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ total
Land No 1,500
Pond Construction No 3 4,000 12,000
Wheelbarrow No 3 28 84
Spades No 4 4 16
Slashers No 10 1 10
Hoes No 5 3.6 18
Seing Net No 1 800 800
Total 14,428

Production and Operating Costs in US$

Cost Item Units @ Qty/ day Pdn Cost/day Pdn Cost/ mth Pdn Cost/ yr
Direct Costs
Fingerlings (tilapia) Pcs 0.07 72,000 5,040 131,040 1,572,480
Fries (Catfish) Pcs 0.2 48,000 9,600 249,600 2,995,200
Fertilizers Kgs 83 996
Fish feeds Kgs 0.52 17 8.84 229.84 2,758
Sub-total 120 14,64 380,9 4,571

General Costs(Overheads)

Labour 225 2,700
Selling and Distribution 125 1,500
Miscellaneous 75 900
Sub-total 425 5,100
Total Operating Costs 381,378 355,576
  1. Production costs assumed 312 days per year with daily capacity of fish farming 60,000fish.
  2. Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
  3. Direct costs include: materials, supplies and other costs that directly go into production of the product.
  4. Total monthly days assumed are 26-days.
  5. The valuation currency used is United States Dollars

Market Analysis

This business proposal does not yield any profits in the first harvest after six months. This is due to a huge excavation cost for quality Ponds that lasts for 60 years. The fish market is readily available because the lake fish is very expensive and scarce since most of it is processed for export. Secondly, the fish skeletons which were being sold to the public after processing for export are also currently exported. Furthermore, aquaculture would be sustained better if the farmers would indulge in poultry and Piggery because their dropping would be of great use in the ponds.

Project Product Costs and Price Structure

Item Period Out put @ Pdn Cost/ yr UPx Total Rve
Tilapia 6-month 36,000 0.16 5,760 2.3 82800
Per year 72,000 0.16 11,520 2 144000
Cat-fish 6-month 24,000 0.16 3,840 2.6 62,400
Per year 48,000 0.16 7,680 3 144,000
Total 180,000 28,800 433,200

Profitability Analysis Table

Profitability Item Per day Per Mnth Per year
Revenue 1,388 36,100 433,200
Less: Production and Operating Costs 1,140 29631 355,576
Profit 248 33,169 77626

Government Participation

The Government has got funds to support development of Aquaculture. Options available include accessing European Union Funds at very attractive rates. There are also some NGOs that have come out to support the growing of fish because fish is very nutritive in terms of proteins and vitamins therefore very good for feeding children to fight malnutrition. It is well aligned with the policy of poverty eradication programme.

 

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