BUSINESS HIGHLIGHTS

Business name: Organic Aquaponics Farm

Webpage: www.organicaqpfarm.com

Business type: Agriculture

Contact Person:

Mr. Pranaya Rajbhandari Mr. Urusha Shrestha

Co-Founder, Organic Aquaponics Farm Co-Founder, AdvenTrack
+9779841346678 +977980867987
pranayarajbhandari@gmail.com urushas94@gmail.com

Address: Darikot, Bhaktapur, Nepal

Services offered:

 Fruits and Vegetables

 Fresh Fish

Target customer: Organic Aquaponics Farm offers its services to middle to upper class families,
visitors at farmers markets, supermarkets like BhatBhatini, Salesberry, etc. and restaurants.

Business operation hours: The business will operate from 9 am to 5 pm and will be open every
day of the week.

Human Resource Allocation:

Title No.
Ground Helpers 4

Total Investment: NPR 40, 00,000

Capital Structure:

Bank loan: NPR 20, 00,000 Promoters/Founders: NPR 20, 00,000

 Introduction

Aquaponics is a method of food production which combines the best aspects of aquaculture and
hydroponics to create a highly productive living ecosystem for sustainable agriculture. By
cultivating fish and plants in a re-circulating system, fish waste can be converted to plant food
using natural bacterial cycles. Organic Aquaponics seeks to utilize cutting-edge aquaponics
techniques to grow organic vegetables for our community, educate others about aquaponics
potential, and demonstrate the sustainable nature of our aquaponics food production.

The benefits of aquaponics over other methods of farming are so significant that many experts
from the world over are calling it the future of agriculture. It eliminates tedious chores; increases
productivity by up to 20 times, reduces the need for harmful pesticides and demands much less
water. To put that in perspective, a 1-ropani aquaponics greenhouse with extended lighting and
climate control will have the same productivity as 20 ropanies of fertile and irrigated fields. If we
are able to develop this technology in Nepal, we will be in the forefront of agricultural innovation
and productivity by global standards.

Organic aquaponics Farm we will be involved in the cultivation of crops such as; cucumbers,
shallots, tomatoes, lettuce, capsicum, onions, peas, cabbage, lettuce, basil, roses, okra, peppers,
watercress, basil, coriander, radishes, strawberries, sweet potato, cauliflower, broccoli, and
eggplant. We also will be involved in farming freshwater fish, crayfish and prawns, eel-tailed
catfish, rainbow trout.

The farm will raise its capital from 50 percent of equity and 50 percent of loan. Hence the initial
investment is of 10 lakh rupees each by the investors. The required capital is of 40 lakh rupees.

Purpose

The purpose is to provide range of produce to targeted consumers who want to consume organic
and even off season vegetable and fruits and fish. The intended purpose also contributes to the
infant organic and aquaponic farming of Nepal’s agriculture.

Vision

Our vision is to provide organic food to 30 percent of homes in Kathmandu valley.

Mission

 Provide fresh vegetables and fish to customers

 Create loyal customer base
 Spread awareness regarding health advantages of fresh foods

Values

 Quality produce
 Understanding customer
 Organic
 Natural
 Innovative
 Consumer empowerment
 Producing Off season produce
 Range of produce and fish
 Operation excellence

Objectives

The Organic Aquaponics Farm wants to be a contributing member of the agricultural sector of
Nepal in the field of alternative/ soilless farming. Its objectives are the followings.

Short Term

 Create customer base through farmers market and super markets

Mid Term

 Increase market share and double the output

Long term

 Become regular suppliers for hotels and restaurants

Building blocks of Business Model

1. Value Proposition

 Low price
 Organic and healthy alternative
 More variety of crops
 Better management of scarce resources
 Availability of off season veggies

2. Key Resources

 Fish
 Green house fixtures and fittings
 Human resources
 Electricity supply

3. Key Activities

 Purchase of seeds
 Maintenance of green house
 Planting of seeds
 Feeding the fish
 Harvesting

4. Key Partners

 Farmers market
 Gardening shops for seeds
 Departmental stores (e.g. BBSM)
 Fish markets
5. Target Customer Segment

 Middle class to upper class family

 Restaurant and Hotels
 Super Markets

6. Customer Relationship

 Effective social media sites to stay connected to customers

 Official website to post updates and information

7. Channel

 Farmers market
 Fish market
 General stores

8. Cost Structure

 Salary
 Construction of green house and planting beds
 Cost of seeds
 Cost of fish and fish food
 Advertisement
 Cost of drainage pipes

9. Revenue Structure

 Sale of vegetables and fruits

 Sale of fishes
SWOT ANALYSIS OF BUSINESS MODEL

Strength

 Organic food
 Higher yield from lesser time
 Less labor
 less cost
 Off season vegetables and fruits
 Space saving
 Indoor/warehouse space, rooftops, etc.)
 Water savings approximately 80-95% over traditional field farming
 No soil-borne problems, i.e. diseases, insects (nematodes), poor
 Quality, lack of nutritive value
 Fewer chemical inputs, such as pesticides, herbicides or fungicides
 Automatic feeding and environmental controls
 No weeding
 Plants generally grow up to 30% faster rate

Weaknesses

 Cannot grow all vegetables and fruits

 we are a new aquaponics business, it might take some time for our organization to break
into the market and gain acceptance
 we may not have the required cash to promote our business the way we would want to

Opportunities

 Organic certification
 New partners
 Growing trend on organic farming
 Need for efficient harvest( less input, off season)
Threat

 Limited Buyers
 Already established organic farms
 Operations

Aquaponics is a method of growing plants in a symbiotic relationship with fish. The fish waste
feeds the plants, the plants clean the water that returns to the fish. One of the many benefits of
aquaponics is that there is no back breaking labor and no dirt to deal with. An aquaponics system
isn’t difficult to maintain but there are daily and periodic tasks that must be done to ensure a healthy
system.

The day-to-day activities include:

 Fish feeding
 Seeds plantation, rotation and harvesting
 Observation and monitoring
 Fish harvesting
 Water quality testing
 Cleaning filters and systems

Organic Aquaponics farm aims to merge the three forms of aquaponics techniques (grow beds,
deep water culture and vertical towers) and merge into one system.
In Organic Aquaponics Farm, the water from the fish tanks which will be kept underground will
move to the vertical towers then to the grow beds and finally back to the fish tanks and then start
over again with the same process. The planned layout for the business is presented below:
 Our Services

These are the areas we will concentrate on in our aquaponics farms. If need arises we will definitely
be adding more agriculture produce to our list;

 Cultivation of freshwater fish and saltwater fish, eel-tailed catfish, rainbow trout, crayfish
and prawns
 Aquaponics greenhouse tomato farming
 Aquaponics greenhouse cucumber farming
 Aquaponics greenhouse bell pepper farming
 Aquaponics greenhouse herbs farming
 Other Aquaponics greenhouse vegetable farming
 Aquaponics greenhouse fruit production
 Industry and Market Analysis

Environmental Analysis

The environmental analysis is conducted based on the PESTLE factors.

Political:

The materials required for farming such as the planting beds, green house glass, fish food and
irrigation pipes are imported from India. The cost of the materials will be depending on the tax
levied and the market rate in India as well as the commuting cost. If the contracted local vendors
cannot import on time then the harvest will be affected. Thus, it is very crucial for the farm to have
uninterrupted supply of materials. In case of any political friction with the neighboring country
that might impact the import of materials, it will adversely affect the business.

Economical:

The economic condition of the country or society will directly influence the sales of business.
More educated consumers who look for organic and quality produce helps to increase our targeted
customers. Their increase in standard of living and the economics of scales of the nation help to
increase their expenditure on quality organic and pricy produce, products and services.

Social:

The socio-cultural beliefs of the society have crucial impact on tradition, values and buying
behavior. The buying of their basic need food is also influenced by culture. Beliefs such as why
to opt for pricey alternatives from the ones already being consumed since generation also
influence ones buying of organic produce. Also as more and more people are getting educated
and the need to consume organic food is becoming a priority friend’s family and relatives also
get influence from each other to get conscious about their food and health.

Technological:

The technological advancement has opened modern avenues for business opportunities. Internet
has become basic necessity for people and connects the society in unimaginable ways. The
Organic aquaponic farm seeks to provide and get connected to its customers and potential
customers through the use of social networking sites and our own websites.

Legal:

There are various legal provisions and assistance provides by the government to the farmers in
Nepal. Such business investing on agricultural sector gets to enjoy certain. Also the legal process
for registration of company, tax levied on the import of materials etc. will influence the cost of
production and business.

Environmental:

The environmental factor will also influence the farm business. As we are into aquaponics
farming we will still be able to grow off season vegetables and fruits within 3 to 4 months. This
can give us an edge in the market.

Porters Five Forces of Market:

1. Threat of new entrant:

The threat from new business entering our market is quite high as there are few barriers of
entry. With a good investment and connection with right peoples, anyone can establish this
form of business. It can be easily copied. We can overcome this, in some way, by having the
first mover advantage and making out mark as quickly as possible. The more quickly and
effectively we cover the market, the easier for us to compete with new entrants.
2. Threat of substitute:
The threat of substitutes is quiet low for the business as customers who are willing to buy
organic products will always choose our products against non-organic products available in
the market. In the other, because we plan to set the prices for the final products lower than
other organic products in the market, customers who are worried about the cost will also be
more attracted towards our products.
3. Bargaining power of buyers:

4. Bargaining power of suppliers:

5. Rivalry within the industry:

Marketing Objectives and Goals

Short Term

Increase awareness to potential customers through social media about the benefits of eating organic
food.

Long term

Generate brand equity at the Farmer's Market as well as within the commercial restaurant industry
market

Market Research- Marketing for the primary product, living organic produce, will be done through
discussions with wholesale produce distributors, grocery stores, and community groups such as
school districts. We will seek to find the best balance between time consuming sales direct to
consumers and retailers vs. the ease of selling to wholesale produce distributors, such as the onsite
Farmer’s Wholesale Produce.

Target Market- Our target market includes eco-conscious consumers who desire fresh, local, and
organic products. They desire healthy food, less chemicals, and more appropriate use of resources.
This demographic is 25-64 years old, has an income above Rs.25000, and is socially aware.
Aquaponics vegetables will provide our customers with a more desirable but competitively priced
alternative over traditional produce. We expect our emphasis on raising the bar for sustainability
will create excellent product recognition and improve our ability to secure repeat sales.

Healthy Food- The leafy green vegetables we will grow are some of the healthiest on the planet,
and thrive in aquaponics systems. These vegetables are nutritionally dense. We will promote
healthy food choices and counter the growth in diet related diseases such as obesity and diabetes.
We are committed to working with community groups and schools to ensure additional healthy
and sustainable food choices are available to those who need it most.

Promotions- Because we will be selling a product which is similar to the produce consumers are
currently purchasing, promotions will be important early on to get customers to try our produce.
Free taste tests comparing our produce to soil grown produce and providing free samples to
customers will let consumers taste the difference and give us time to tell them why our produce is
better. These promotions are intended to raise customer awareness of our new products, encourage
customers to try our products, and incentivize repeat sales.

Education- Aquaponics offers significant potential to help our society grow food both
commercially, and in our backyards. Organic Aquaponics Farming wants to help spread the word
about aquaponics by offering trainings, workshops, and demonstrations to farmers, regulatory
agencies, schools, and the general public. We expect our operation to be a living laboratory and
hope we can share what we learn with others in a way that lets aquaponics grow into something
greater.

Marketing Mix

i. Product Strategy

The differentiation with competitors is the produce quality and no use of pesticides. The method
used to harvest plants and organic nature gives the product a unique and desirable feature. The raw
material used that is the seeds and fish manure is of highest nature. As produce can be harvest at
off seasons and in 3 to 4 months the labour and material to produce such vegetables, fruits and fish
will have a competent one.

ii. Pricing Strategy

As the produce will be of a premium brand, where customers who have good income and desire
organic food are main targets. The price range of vegetables is at an average Rs100 per kilogram
and for fish at an average Rs1000. The value proposition will outdo the price because customers
will pay for the high quality and healthy nutritious value it has.

Produce Rupees per kg

Vegetables 100-300

Fruits 300-400

Fish 850-1500
iii. Promotion Strategy

Promotional activities will be conducted throughout the year. The initial year will be focused on
creating awareness about the produce. The produce will be launched along with starter campaign.

• Create a buzz through social media

• Starter campaign

• Promotion in farmers market

• Promotion in selected supermarkets

• Promotion through supplying the restaurant

• Advertisement

• Educational and awareness on benefits of our products to schools and other various places

iv. Distribution Strategy

The vegetables, fruits and the fish are collected for sale within the Darikot farm site and then
supplied to various farmers market within Kathmandu valley. Supermarkets and restaurant are also
linked with the distribution channels to transport the produce on daily basis selling fresh. The
customers can also directly come and buy produce and fish from the farm itself.

v. Process Strategy

The picking and cleaning of fresh produce done within the farm by our staff and are processed to
be packed and ready for delivery on daily bases. The fish are distributed to farmers market in their
live state and the customers who buy from the farm itself are processed and packed to the
customers wish.

vi. Physical Evidence

The brand perception and the customer feedback are very important. To build the awareness and
values amongst customer, social media, interaction in farmers market and such promotional
activities will be carefully planned and executed. The farm is to be kept with proper standards
maintained and branding on packaging.

vii. People

The staff are very well trained and are involved in delivering and handling customer’s queries and
demands.
Chapter 6: Financial Plan

Financial Objectives

Short term

• Earn cash through sales and cover return on investment.

Medium Term

• Obtain positive cash flow in the following year of starting operations and complete
payment of bank loan.

Long term

• Earn subsequent profits and make additional investment for new site.

• Increase salary of personnel.

• Purchase additional fixed assets.

Assumptions made for financial estimations

i. The depreciation method used for the business is reducing balance method at following
rates per annum:

• Greenhouse 15%

• Grow beds and fish tank 15%

• Water Pumps 20%

ii. The business is financed through 50% equity and 50% bank loan. The owners will receive
annual salary including Dashain bonus at the end of each month.
iii. The house rent will remain consistent throughout the years at 10000 per month until
expansions are mode in the future.

iv. Employee salary is estimated to be 10000 per month and additional dashain bonus for the
first four years. A rise in employee salary to 25000 per month and additional dashain bonus will
be made as of year 5.

v. 20% tax had been applied on profit every year.

vi. The major revenue sources for the business will be sales of the harvested produce and
fishes. The average rate for the produce is set at 100 while the average rate for fish is set at 1000.

vii. Extensions have been estimated to be made in the fifth year of operation where new fixed
assets will be purchased along with an increase in various expenses.

viii. The inventory is estimated to increase by 5% every year until the fourth year of operations.
In the fifth year, the inventory is estimated to increase by 15% as a result of business expansion.

ix. Miscellaneous expenses are expected to increase each year at a consistent rate of 5%.

x. The interest rate for loan is estimated at 12% per annum. Payment of the loan is made in 4
installments each year. The scheduled number of payments for the loan is set to be 12

Projected Income Statement

Capital Structure

Funded by 50% Equity and 50% Loan

For Total Equity

Investor’s Name Investment amount (NRs) % Contribution

Urusha Shrestha 1000000 25%

Pranaya Rajbhandari 1000000 25%

For Total Loan

From Nepal Investment Bank Ltd NRs 2000000

Performance Ratios

Projected Cash Flow

Chapter 7: Risks

Risk in Aquaponics Farming

There are various risks associated in any agriculture production. Usually price risk and production
risks are usually considered the most important in agriculture. Aquaponics farming also includes
storage, processing, ecological, communication and profit risks. The Aquaponic farming is at an
infant stage in agriculture industry of Nepal.

Risk management in Aquaponics farming

Discussing risk management on-the-farm, the strategies in risk management are usually
divided in production, marketing and financial- all of them targeted at control risk exposure and/
or risk impact
Risk management in Aquaponics organic production is a complex issue embracing risk
assessments and risk management with special focus on planning and risk communications.
It should be viewed from two different points- commons with risk management in agriculture
as a whole, and considering peculiarities of organic production methods and broader
sustainability goals. The questions of risk vulnerability, risk identification, risk
occurrence/likelihood, risk analyses, risk prevention, risk recovery, feedback, evaluation and
monitoring, etc., are addressed by risk management strategies and risk management plans on
different levels, as well as their implications in the management system of all the kind of
organizations.