Professional Documents
Culture Documents
Critical Question I
What Species Will You Produce?
Example: Tilapia
Biological & Economic Constraints
Tropical Fish That Can Die in Winter in
Much of the US
Must Over-Winter Indoors Raising Costs
Good Fillet Market in US. But Imported
Fillets Cost Less (Visibly Lower Quality)
Live Sales are Difficult, with Limited Market
Example: Baitfish
Biological and Economical Constraints
Low Production Costs & Low Yields
Live Product Requiring Extensive
Distribution System
Local Sales Tied to Local Fishing Conditions
These are Nationwide on Holidays
Market for Baitfish is Flat Little Opportunity
for Growth
Baitfish II
Biological and Economical Constraints
Difficult Both to Wholesale or Break
into Market
Could Sell Baitfish Retail but Volume
Will be Low
Even in Prime Fishing Areas, Profits
from Baitfish Sales Are Low
Possible to Sell to Established Baitfish
Wholesaler with Established
Distribution Network
Freshwater Prawns II
Biological and Economical Constraints
Markets Not Mature New Grower
Must Help Develop Market
Production Risks are High - Severe
Losses are Possible
Seed Supply Unreliable and Scarce
Production Costs Not Well Known
Harvesting Requires Draining Ponds
These May Need Retrofitting
.
What About
Eels
Bullfrogs
Turtles
Alligators
Critical Question II
Are You Fully Aware of the Risks Involved?
Low Dissolved Oxygen
Viral, Bacterial & Protist Diseases
Effects of Bird Depredation
Remediating Off Flavors
Market fluctuations
Remember Fish Farmers Bear All Risk
There are No Govt Programs to Help
$/lb
0.74
0.75
1.12
1.03
1.62
Critical Question IV
Aquaculture is Management Intensive
You Must Ask Yourself Whether You Have
The Skills, Management Ability & Time
to Run a Fish Farm
If Not, You Have to Hire a Manager
Critical Question V
It is Critical to Spent Time Studying the Markets
Are the Markets Accessible?
What Have Market Prices Been
Over the Past 5 Years?
Are Prices Higher During Certain
Times Rather than Others?
Is the Common Market Price High
Enough to Cover Your Costs?
Marketing Plan
Successful Aquaculture Businesses
Are Market-Oriented
Have Diverse Markets
Are Committed to Their Customers
Marketing Plan
Documentation from End Users of Your Product
Stating That They Will Purchase Your Fish
Provided They Meet Quality Standards
This Will Strengthen Your Loan Proposal
Balance Sheet
Lists What Assets and Liabilities Would be for
The New Aquaculture Business
Used to Calculate Net Worth (Owner Equity)
Used to Determine Solvency & Liquidity
Financial Strength & Position of the Business
Texas Lenders Prefer Owner Equity of 60-65%
for Aquaculture Loans
Income Statement
Itemizes Farm Income and Expenses
Also Called Profit and Loss Statement
Calculates:
Net Farm Income
Return to Capital
Return to Labor & Management
Return to Equity