Universitatea Alexandru Ioan Cuza

Facultatea de Economie si Administrarea Afacerilor

Specializarea Economie si Afaceri Internationale

FISH PONDProject

Zaharia Victorin

Master EAI an I

Iasi

2015

Cuprins

I.Description of the project 3

1.1 Summary 3

1.2.How to Build Your Own Fishing Pond 4

II.Personal data 8

2.1The reason for our project 8

2.1Farm product description and application 9

2.2Pricing and Distribution 10

III.Project objectives 10

IV.Project outputs 10

VI.Farm capacity and production programme 12

VII.Farm operation technology and engineering 13

VIII.Land, Building And Civil Works 14

IX.Manpower and tranning requirement 15

X. Financial analysis 16

XI.Total initial investment cost 16

XII.Production cost 17

XIII.Profitability 17

XIV.Benefits 18

XV.Methodology 18

I.Description of the project

1.1 Summary

The efficient fish farm will address critical issues of resource and land utilization in Iasi. The project will create sustainable employment for youths in Iasi and afford the surrounding communities with an alternative source of protein and modern fish farming techniques to hundreds of residents in the district thereby realizing livelihoods for many more among families. The principal economic activity in Romania is agriculture but lately reliable rainfall has dwindled and natural water sources are drying up. This has brought about a predicament to existence of sustainable economic activities and its consequences have been laid bare. Poverty and climate change have further aggravated the situation. The situation is worsening in the absence of deliberate efforts to diversify into modern and alternative reliable farmingmethods.

This project will be implemented with a strategic aim of ensuring a healthy and wealthy environment for the surrounding communities and also the enhancement and promotion of quality fish farming methods through the demonstration and facilitation of the same practices geared towards sustainable livelihoods and development.

The pond is planned to be 5 hectare, comprising a series of small ponds and will have two meters depth depending on the soil type and topography of the area. This profile envisages the establishment of a farm for the production of Fish with a capacity of 30 tonnes per annum.

The present demand for the proposed product is estimated at 14,116 tonnes per annum. The demand is expected to reach at 20,868 tonnes by the year 2016.The plant will create employment opportunities for 8 persons.

The total investment requirement is estimated at 7795, out of which 52.8 thousand is required for plant and machinery.

1.2.How to Build Your Own Fishing Pond

We love spending time fishing. We love the fresh air, the great fun, and the delicious fish. But we hate having to go all the way to the nearest lake. But now you don't, with this method, you can build one of you own ponds in your very own backyard!

1.Set up a space. Designate a certain part of your yard for it. This area should be large enough so that the fish can roam, but small enough so that it stays on your land (unless the neighbors are okay with it).

2. See if the dirt is suitable by making a s mall hole and pouring some water in it. The

longer it takes for the water to be sucked up, the better. If the ground is not suitable, don't worry, check out step 4. If the ground is good, continue to step 3.

3. Dig a hole. This hole will soon be your pond. The hole should take up all or most of your designated available area.

4. If the ground is not suitable for the water, put some material such as plastic, sand,

a thin layer of concrete, etc. over the dirt after you dig the hole. Make sure it looks nice and natural. If it looks sloppy or crappy, either do it over or mak e sure you can hide the faults with old tires, plants and rocks.

5. Put in wet land plants. Many fish eat wet land plants in their natural habitat. To anchor them without damaging their roots, take the roots in your hand and make a 'beak' with your fingers around them. Sink your hand into the bed and then open your fingers. This will make the roots spread out before the cover settles over them. (This is the same technique for planting in a tank, by the way.) Arrange them strategically so that they have good hiding places. You want your babies to be able to hide from larger predators that can and will eat them.

6. Add wate r. There are 2 things that you can do for this, the first is wait for rain to come and fill up your hole. Your second option is to use your hose or a bucket to fill up the

hole with water. Before using your hose, make sure the water's pH and all is balanced. Most tap water has chlorine in it to kill germs, but it also kills the good bacteria needed. To keep the bottom cover (sand, gravel, etc) from being mussed, aim your hose into a bucket. Don't forget to tie a long rope to that bucket, you probably won't want to dive into muddy water for it when the pond is full.

7. Let the water settle before you put in the fish. Make sure you have species that won't kill each other right off, and that are all edible. Include cleaners such as crawdads (crayfish) to keep the bottom clean; make sure they have plenty of rocks to hide under. Before you put any fish into your pond, acclimatize them to the new water. Do this by putting them into a tub or bucket with their original water, then gradually adding your pond water until they are breathing almost pure pond water. Then net them and gently dump them into your pond.

8. Enjoy! Congratulations, you are finished, now you can go right in your yard. In addition, if you live in a area where it gets under 55 degrees you should get a bubbler.

II.Personal data

Well name our business as Aqua Fish Company, an ideal business venture, to be located in Iasi City. It will engage in fish farming and selling commercial fish such as Bangus. It will target to sell to the well known restaurants, sardine manufacturers and mainly to the ordinary consumers. We, the partners, well have to converge our resources and intellect to run this proposed business. As agent of the business success, each one of us shall endeavor to make this venture to be lucrative.

The production phase is expected to create minimal cost because there are lot of traditional yet effective process of raising fishes that can be combined with scientific technology which will surely provide productive harvests at low cost. The source and cost of financing the project will be charged to the partners capital.

2.1The reason for our project

Fish as a source of human food has a long history in whole world. People consume large amount of fish in fasting days, in big cities and towns;

Outside these areas, however, the domestic market for fish is small. The factors which account for this low level of local fish consumption are the following. First, fish has not been integrated into the diet of most of the population. Second, because of religious influences on consumption patterns, the demand for fish is only seasonal. During lent, for example, Christians who abstain from eating meat, milk and eggs consume fish.

Fish is one of the known aquatic animals used for human consumption as food. Aquatic animals in general do contain a high level of protein (17-29%) with an amino-acid profile, similar to that of the meat of land animals. The flesh of a fish is also readily digestible and immediately utilizable by the human body, which makes it suitable for complementing the high carbohydrate diets. Compared with land animals (with some exceptions, such as shellfish), aquatic animals have a high percentage of edible flesh, and there is little wastage.

Aquatic animals are a source of minerals such as calcium, iron and phosphorus as well as trace elements and vitamins. Marine species are particularly rich in iodine. The fatty acid content is high in polyunsaturates and particularly those which are attributed to reduce blood cholesterol. There are also some indications that certain fatty acids in fish may provide protection against renal disease. Increasing the per capita consumption of fish and shellfish in any country benefits health.

Fish properly preserved, prepared and presented in the right form is popular in most households, particularly in big towns. The appeal of an otherwise tasteless diet is greatly improved, and much use is made of fish and shellfish as soups and condiments, especially when smoked or dried.

2.1Farm product description and application

Growing fish in ponds allows feeding, breeding, growing and harvesting the fish in a well-planned way.

The pond that will be established for the fish production will be dug mainly by manual labour and with the minimum support of machinery. Thus, the establishment of the pond by itself will help in creating job opportunity for the local labour force.

The pond is planned to be 5 hectare, comprising a series of small ponds and will have two meters depth depending on the soil type and topography of the area.

Trout fish species will be grown in the pond with the stocking of upto 29,000 fish per hectare. The number of fish can be increased upto 50,000 depending on the extent of fertilizing the pond and the amount and type of supplementary feed provided to the fish.

The fish that will be put into the pond are assumed to be available from the rivers, lakes and reservoirs in the region.

There will be an intensive management of the pond. The pond attendants and the manager will monitor the pond and the growth of the fish. The fish is expected to grow fast and reach marketable size within six months.

Under intensive management and regular harvesting, it is expected that 6 to 10 tonnes of fish per hectare will be obtained. Fresh fish will be sold in the local market and the processed fish/ smoked, salted and or dried fish) will be sold in far away markets and can even be exported to countries where there is demand for processed fresh water fish.

2.2 Pricing and Distribution

The Price of fish varies depending on the type of species. The common type of fish, trout fish, is sold for 7 /kg in the retail shops Iasi (undetailed 4/kg). Fish can be marketed through the available Fish Marketing Co-operatives located in the country or through other similar retail outlets.

III.Project objectives

The objective of the project is to assess the economic and technical feasibility of

implementing low cost/low pressure micro fishing technique in Iasi on a pilot basis in selected water-deficit areas in Iasi. The project will demonstrate and promote appropriate

low cost/low pressuremicro fishing techniques,providetrainingtotechniciansand

fishing on thenewtechniques, assess theirfeasibility, anddrawlessonsand

recommendationsforlong term application/useof thesetechniquesin the irrigated

agriculture sector of Iasi. The specific objectives of the project are:

Selected number of tools a re installed on a selected number of fish landing sites according to the number of people living in the area;

Selected number of technicians is trained on low cost/low pressure good fishing techniques;

Selected number of fish farmers is trained on low cost/low fish farming techniques;

The performance of the new techniques for one season is monitored; and

Conclusions and recommendation are drawn on the feasibility of implementation and

the possibility of extrapolation to other fishing landing sites.

IV.PROJECT OUTPUTS

The expected outputs from this project will be:

1. Imple ment and de monstrate low cost/low fish farming techniques at the local fish farme rs level.

- plastic water fibred boats;

- water engines to help in the transportation of the personnel who will teach people on the different citties on the good fish farming methods; and

- Fish farm teaching materials for use by extension workers and fish farmers developed.

2. Train selected fish farmers and technicians/officers from the Ministry of

Agriculture, Fisheries and Animal Husbandry on the techniques, methods and

imple mentation of low cost fis h farming methods and systems .

Thirty or more fish farmers trained on low cost/low fish farming techniques and its use; -Technical and general supporting role to fish farming strengthened.

3. Assess economic and technical feasibility of implementing low cost/low fish farming systems.

Low cost/low fish farming techniques performance monitored for one fish and water Landing Site in the area;

Conclusions on the technical and economic feasibility of low cost fish farming techniques drawn;

4. Define a frame work of better fish farming methodology development in Iasi;

- Strategic guidelines for the development of better fish farming methods in Iasi elaborated.

V.Product Specification

The fish that we are going to produce and sell is a high quality fish, fresh and one source of providing protein. The customer doesnt have to wait for a longer time because we have sufficient supply of fish, continuous operation and on time delivery. We can assure that every kilo have its exact weight.

Production Process

In raising trout, we will provide and sprinkle milk powder or flour to the growing trout. The fishes could also be given breadcrumbs and food leftover. The size of the male trout was ready for market within 4 months while the female will almost reach 6 months before ready to be marketed. It is possible to harvest 1 ton of trout in every one hectare within 3 to 4 months if the sufficient food supply for the fishes will be maintained.

VI.FARM CAPACITY AND PRODUCTION PROGRAMME

6.1 Farm Capacity

A pond for fish culture will be constructed on a selected site. The pond is envisaged to be a five hectare pond. It can be one big pond or successive smaller ponds depending on the topography of the area and the desire of the management.

The pond will have the capacity to produce upto 30 tonnes of fish per year. The type of fish that will be used for the production purpose is trout. This type of fish is chosen because it is a fast growing fresh water fish.

6.1.1 Production Programme

The project will start with 50 per cent capacity in the first year of operation and will reach to full capacity in the second year.

The pond will be stocked mainly with trout fingerlings. The fingerlings will be purchased or obtained from the nearby rivers, lakes and/or reservoirs. Prior to the stocking of the fish pond, the pond will be checked by a qualified aquacultures for its quality and appropriateness.Depending on the market demand for fish in the area, there can be two to three fishing days per week. The fish will be harvested using appropriate fishing nets like gill nets and seine nets.

6.2 Farm matrerials and inputs

Annual farm inputs required at full capacity of the farm for production of marketable

fish are presented in Table 4.1.

Table 4.1

ANNUAL FARM INPUTS REQUIREMENT AND COST OFAQUACULTURE AT FULL CAPACITY

Sr.Unit ofCost,

No.DescriptionMeasureQtyLocalForeignTotal

1FingerlingsNo.50000500-500

2fertilizerQt.10400-400

3LimeQt.8200-200

4Fishing gears (nets)10500

5ClothingSet400400

6Others10001000

7Grand Total25005003000

6.3 Utilities

Annual requirement of electricity, water, and fuel for processing and sanitation are estimated at 3000 kWh, 800 m3 and 4800 liters, respectively. Thus, the total cost of utilities is about 500 per annum.

VII.Farm operation technology and engineering

7.1 Farm operation technology

After the appropriate pond is constructed, a layer of hydrated (builders) lime of about 115 kg per hectare will be placed on the bottom of the pond two weeks before the water is put into the pond. The lime will condition the soil in the pond and will help the fertilizers work. Then, the pond will be filled with water and stocked with fingerlings of tilapia fish species. Thus, the pond is planned to be a monoculture pond that will contain one type of fish only. This type of fish is selected because of its productivity and fast growing characteristics. Moreover, this type of fish is highly preferred by consumers.

The fingerlings can be obtained from the nearby rivers, lakes or reservoirs. Because this type of fish consumes microscopic plants (phytoplankton) that grow in the water, at least one to two weeks before the fingerlings are put into the pond, the pond will be fertilized using organic fertilizers to encourage phytoplankton growth in the pond. To maintain the high productivity of the pond, fertilization and enrichment of the pond will be done on regular basis.

The growth of the fish will be monitored on weekly basis and harvesting will start when the fish reach a table size of about 350 to 400 grammes in weight.

Appropriate nets, i.e., gill nets will be used for harvesting the grown fish . If there is dependable market nearby the production area, the harvest can be sold fresh. Otherwise, the harvest can be immediately processed into dried, smoked and/or salted fish to elongate the shelf- life and transport it to long distances where there is dependable market.

7.2.Engineering -Farm Machinery and Equipment

The required farm machinery, equipment and tools are listed in Table 5.1 Total costs are estimated to be 7.000 .

Table 5.1

FRAM MACHINERY AND EQUIPMENT REQUIREMENT

WITH ESTIMATED COST

Sr.Unit PriceTotal Cost ( '000

No.DescriptionUnit ofQty.(00

ForeignLocalTotal

Measure

1Pickup vehicleNo.1505023

2Deep freezeNo.21. 531. 6

3Ice boxNo.50. 050. 251. 25

4Processing equip.Set15525

5Office equips.Set10. 60.633

6Weighing scaleNo.10. 50.52. 52.

7Others1155

Grand Total61.2510.5071.75

VIII.Land, Building And Civil Works

The total land area required for the aquaculture development is about 10 ha., out of which about 5 hectare is required for the construction of the pond. The remaining will be used for future expansion of the aquaculture activity and for the construction of the necessary infrastructure such as fish processing house, office, guard house, etc. The site, particularly the processing area needs to be fenced properly. Posts of local timber and barbed wire will be used for the construction of the fence.The overall cost of buildings and constructing the pond is estimated at 3934. Table 5.2 details out the land, building and civil works requirement and corresponding cost.

Table 5.2LAND, BUILDING AND CIVIL WORKS REQUIREMENTAND ESTIMATED COST

Sr.Unit PriceTotal Cost

No.DescriptionUnit ofQty.(0 )

ForeignLocalTotal

Measure

1Pond constructionha550. 00250.0250.0

2Officem 2121. 5018.018.0

3Processing housem352. 0070.07 0.0

4Guard housem90. 605.45.4

5Fencem8000. 02529.029.0

6Others30.030.0

Grand Total393.4393.4

8.1 Proposed Location

The envisaged project is proposed to be located in Iasi zone of the Ciric Agrement Zone.

IX.Manpower and tranning require ment

The envisaged project's manpower requirement is 8 persons.Manpower requirement and the corresponding labour cost is as shown in Table 6.1 below.

Table 6.1

MANPOWER AND SALARY REQUIREMENT FOR THE FARM

Sr.Req.Salary

No.DescriptionNo.PerMonthlyAnnual

Staff/Month

1Farm manager290090016800

2Fishermen23006009600

3Pond attendant13003003600

4Driver13293293948

5Guards21292583096

Sub-Total81848248729844

Employee benefit (25%)7461

Grand Total37305

X. Financial analysis

The financial analysis of the Fish Production project is based on the data presented in the previous chapters and the following assumptions:-Construction period1 yearsSource of finance30 % equity

70 % loanTax holidays3 yearsBank interest7.5 %

Discounted cashflow8.5 %

Repair and maintenance3 % of the total plant and machinery

Accounts receivable30 daysRaw material, local30 days

Raw materials, import90 daysWork in progress1 dayFinished products2 days

Cash in hand5 daysAccounts payable30 days

XI.Total initial investment cost

The total initial investment cost of the project includ ing working capital is

estimated at 7000, of which 5.9 per cent will be required in foreign currency.The major

breakdown of the total initial investment cost is shown in Table 7.1

Table 7.1

INITIAL INVESTMENT COST

Sr.Cost ItemsTotal

No.('0 )

1Land lease value21.0

2.Building and Civil Work393. 4

3.Farm Machinery and Equipment52.8

4.Office Furniture and Equipment29

5.Vehicle230

6.Pre-production Expenditure45.2

7Working Capital17.2

Total Investment Cost779.57

Foreign Share5.9%

XII.Production cost

The annual production cost at full operation capacity of the project is estimated at 4.000 (see Table 7.2). The material and utility cost accounts for 8.1 per cent while repair and maintenance take 5.1per cent of the production cost.

Table 7.2

ANNUAL PRODUCTION COST AT FULL CAPACITY ('0 )

ItemsCost%

Raw Material and Inputs2. 51. 2

Utilities146. 8

Maintenance and repair10. 45. 1

Labour direct42. 729. 8

Farm overheads10. 75. 2

Administration Cost10. 04. 9

Total Operating Costs90. 444. 1

Depreciation7536. 4

Cost of Finance40. 719. 7

Total Production Cost406100

7.1 Financial evaluation

Ouantity (tones)Price /kgTotal

14,116798.812

XIII.Profitability

According to the projected income statement, the project will start generating profit in the first year of operation. Important ratios such as profit to total sales, net profit to equity (Return on equity) and net profit plus interest on total investment (return on total investment) show an increasing trend during the lifetime of the project.The income statement and the other indicators of profitability show that the project is viable.

SECTIONVALUE

Sales98.812

Manpower and salary requirement for the farm37.305

Farm machinery and equipment requirement7.123

Farm inputs requirement and cost of3.000

aquaculture at full capacity

Total51.384

XIV.Benefits

The project can create employment for 8 persons. In addition to supply of the domestic needs, the project will generate 51. 000 per annum in terms of tax revenue when it starts to operate at full capacity. Moreover, the Government can collect employment, income tax and sales tax revenue.

XV.Methodology

1. Geographical area

Iasi is one of the largest cities and municipalities in Romania. Located in the

Moldavia region, Iai has traditionally been one of the leading centres of Romanian social, cultural, academic and artistic life. The city was the capital of the Principality of Moldavia from 1564 to 1859, then of the United Principalities from 1859 to 1862, and the capital of Romania from 1916 to 1918.Known as The Cultural Capital of Romania, Iai is a symbol in Romanian history. The historian Nicolae Iorga said "There should be no Romanian who does not know of it". [6] Still referred to as The Moldavian Capital, Iai is the seat of Iai County and the main economic centre of the Moldavian region of Romania.

2 Target Population

Iai itself has a population of 290,422 (the most populous in eastern Romania, and the fourth most populous Romanian city), the metropolitan area is home to 382,484 residents, while the population of the peri-urban area exceeds 500,000 residents. Home to the oldest Romanian university and to the first engineering school, Ia?i is one of the most important education and research centres of the country, and accommodates over 65,000 students in 5 public and 6 private universities.The project therefore targets the increasing demand for fresh fish produce. The demand for fresh fish is ever rising due to population increase in the constituency with the booming economic activities influencing majority of people to shift their bases from the various marginalized districts in Iasi for better life. The project therefore intends to supply the produce to at least a quarter of Iasi population and many more consumers outside the city.

3.Data manage ment and analysis

Forecast will develop and implement a new project management system with the assistance of the donors, which will improve its internal operations including a computerized management information system with supporting new formats and procedures for better record keeping and reporting a vibrant financial management system also with supporting format and procedures, written personnel policies and systematic planning. Staffs deployment and utilization of the donor funds will be reviewed in relation to the project performance.

However many changes will be implemented with the emerging challenges particularly in strategic planning given the diversity replicated by wide variation in socio-economic status of the project target area means that a flexible, and innovative programming in regard with increasing demand.

Forecast will employ professional project performance, a good information management system and good innovative programming for the achievement of an aggressive project performance.