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Aquaculture
America 2005 - Meeting Abstract
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360
Will your new aquaculture Business be profitable?
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Steeve Pomerleau*
and Carole Engle
Aquaculture/Fisheries
Center
University of Arkansas at Pine
Bluff
P.O. Box 4912
1200 N. University Drive
Pine
Bluff, AR 71601 USA
spomerleau@uaex.edu
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In
considering an aquaculture business venture, there are a
number of important decisions to be made. This presentation is
intended to help potential producers by outlining critical
questions, estimating the level of capital investment, and
briefly describing the components of a good business plan
necessary to evaluate feasibility and operating capital and to
secure adequate financing.
Deciding
which aquaculture species to produce is the first step. Each
species has its own biological and economic constraints as
well as potential benefits. Do you have a clear understanding
of these trade-offs and questions? Are you aware of the
economic impact of the risks involved in aquaculture, such as
low dissolved oxygen, diseases, bird depredation, etc.? What
will it cost you to produce this species in the production
system selected? The principal question is, can this species
be raised and sold for a profit? In selecting a species to
raise, it is critical to spend as much time studying markets.
Are markets accessible? What have market prices been over the
last 5 years? Are they higher during certain months than
others? Is the most common market price high enough to cover
all your production costs?
The next
step prior to entering commercial farming is to develop a
business plan. A good business plan will include: 1) a
description of the proposed site and production system, 2) a
marketing plan, and 3) a financial analysis. The financial
analysis should include: 1) enterprise budget, estimate of
required financing, farm appraisal, balance sheet, income
statement, cash flow budget, and personal financial
statements.
Are you aware of the large
capital investment required for building and operating a fish
farm? The business will need to generate cash revenue when
needed to pay expenses when due and payable. You must ask
yourself if you have the skills, management ability, and time
to run a fish farm. If not, you will have to hire a manager. A
feasible plan will indicate potential profits, but will the
level of profit make your efforts worthwhile? Fish farming is
a great way of life but requires a great deal of preparation
and planning. | |
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2006 World Aquaculture Society All Rights
Reserved.
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