EXECUTIVE SUMMARY
The Commercial Fish Farming Estate project
is designed to meet the requirements for the establishment of a fish farm in Abuja
FCT. The main economic significance of the proposed project is its contribution
towards narrowing down the fish demand-supply gap deficit in Nigeria as well as the supply of proteins and
micronutrients for feeding the teeming population of Abuja and Nigeria at
large. The fish farm estate project aims specifically at table-fish size and
fingerlings production to boost the domestic fish supply in the country and for
export purposes too. The cost benefit analysis below has shown that 90 tons of
table fish and 0.5 million fingerlings are realizable in six months of
production with a net profit of about N
8,000,000. This implies that about N16,000,000
is realizable annually from two production cycles with a return on investment (ROI) of 100% which signifies
that the project is feasible and
profitable.
FISH SUPPLY AND DEMAND IN NIGERIA
Fish constitutes about 41% of
the total animal protein intake by the average Nigerian hence there is great
demand for fish in the country. Nigeria requires about 2.66 million metric tons
of fish annually to satisfy the dietary requirement of its citizens which are
about 150million in number. Regrettably, the total aggregate domestic fish
supply from all sources is less than 0.7 million metric tons per annum. Nigeria
has to import about 0.7million metric tons of fish valued at about $500 million
annually to augment the shortfall. This massive importation of frozen fish in
the country has ranked Nigeria the largest importer of frozen fish in Africa.
The huge sum of money spent by Nigeria annually in fish importation could be
used to invest in fish farming. Nigeria can substitute fish importation with
domestic production to create jobs, reduce poverty in rural areas where 70% of
the population lives and ease the balance of payments.
A review of the various food production
systems reveals fish farming as an important
strategy in the global fight against hunger, malnutrition
and poverty, particularly in the developing nations including
Nigeria. Aquaculture, i.e. fish farming, is considered as the provider of the needed high quality animal protein and other
essential micronutrients because of its
affordability to the poorer segments of the community in addition to the provision of employment opportunities and cash
income.
Nigeria has the capacity to attain the
desired fish self‐sufficiency within a short of time if the numerous
aquaculture potentials, which abound the nation are adequately utilized. These
potentials are estimated at about 2.5 million metric tons of fish annually.
INTRODUCTION
TERMS OF REFERENCE
The main objective of carrying out this study is to establish a viable commercial fish farming estate in Abuja FCT. This report therefore assesses the project site with the ultimate view to recommend a viable fish farming system and to provide fish farm plans with technical and managerial inputs.
PROJECT CONCEPTUALIZATION
The Commercial Fish Farming Estate in Lugbe Abuja FCT has been conceptualized out of a zealous anxiety to contribute to animal protein supply Abuja FCT and Nigeria at large. Moreover, the need to conserve foreign exchange hitherto expended on a massive importation of frozen fish further informed the project concept. The report has thus been motivated by the following considerations:
The large population growth in Abuja FCT and Nigeria at large, the alternative sources of animal protein (beef) relative to fish as well as the upsurge in economic, social and industrial development resulting in improved standard of living and feeding habits are clear evidence of huge demand for fish in the country.
The scarcity of foreign exchange and its concomitant effects on fish importation is apt to aggravate the insufficient supply situation and readily lends credence to the proposed project. The need for modern commercial fish farming and integrated farming methods.
The details of current practices employed by Nigerian fish farmers vary considerably. However, fish farming is very important and most fish farming practices is still largely on a subsistence level. The main advantage of the modern commercial fish farming system is its emphasis on large units of production, labour saving, effective management of factors of production and higher output per hectare.
It is however very important to bear in mind that the principal challenges of modern fish farming in the Nigerian context are related to changing climatic conditions, timely availability of necessary inputs, public policies on agriculture as well as security. It is however imperative that management be constantly be aware of these problems such that the fish farming system and operating methods are tailored to overcome them, if high yields are to be maintained on sustainable basis.
Schedule Feasibility
ASSESSMENT OF THE PROJECT SITE
The following indices were employed by the consultants
to fully assess the project sites with the view to determine its
suitability for the purpose to which it was proposed:
·
Location of the project site
·
Topography of the entire site
·
Soil (edaphic) factors
·
Hydrology and hydrogeology
·
Vegetation cover
·
Accessibility of the project site
·
Title of land deeds
PROJECT LOCATION
The proposed Commercial Fish Farming Estate is to be
located in Abuja FCT. The site is excellent as it is very close to good express
road signifying that, fish farming inputs can easily be transported at
minimal cost. Furthermore, harvested farm products can easily be
transported to the markets for sale. Weekly markets are numerous within the locality.
The site is also motor able hence vehicles can easily reach the site to
evacuate fish farm products. All these factors indicate that very little
transportation cost would be incurred in evacuating the farmed products.
TOPOGRAPHY
The topography of the proposed site is generally flat
with gentle sloping, which is quite suitable for establishing a
commercial fish farm with minimum financial outlay. Generally land of this
nature poses little or no constraint to integrated farming systems
SOIL FACTORS
The textural and structural characteristics of the
soil at the site vary from the northern plank to the southern axis. Whereas most parts of the northern plank consist of
loamy and sandy loam soil, the Southern
axis composed of clayey soil, which is ideal for earthen pond development.
However, the remaining part of the
site with sandy loam soil could equally be utilized for establishing an indoor hatchery complex as well as concrete
fish tanks of assorted sizes. This variation of the soil characteristics is expected in a conventional setting and does not
pose any threat to fish farming.
HYDROLOGY AND HYDROGEOLOGY
The proposed site is very close to a natural perennial
river which can supply the much-needed water requirement for the fish farm
estate. Diverting the river into an earthen reservoir is very much feasible since
the catchments areas are strategic. Industrial water boreholes will also be
constructed which are expected to provide back‐up services to the farm
especially in the dry season to ensure farm’s operations on sustainable basis
all year round.
ACCESSIBILITY OF THE SITE
The proposed fish farming estate is very much
accessible as it is very close to the main road signifying that inputs can be
transported to the farm easily with little cost while harvested farm product
can easily be evacuated also.
TITLE OF LAND
Odeyemi Farms hopes to acquire 5 hectares of land
at the said location. Details of this is available under the financial
analysis.
Technical Feasibility
The Proposed Commercial Fish Farming
Estate Lugbe Abuja FCT and Nigeria at large consists of fifteen constructions and
installation of two standard industrial water boreholes with overhead tanks.
·
Construction of an indoor hatchery complex
·
Construction of five outdoor concrete
nursery tanks
·
Construction of twenty concrete production
tanks
·
Construction and installation of a feed
mill complex
·
Construction of farmhouse, staff quarters
and other supporting infrastructure
·
Construction of training hall
·
Construction of fish processing centre and
cold storage facility
·
Construction of fish marketing centre
·
Procurement of fish farming inputs,
hatchery equipment and farm implements.
·
Procurement of farm utility vehicles
·
Procurement of an electric
generator
·
Procurement of farm implements and
equipment and
·
Procurement and installation of twenty
circular fiberglass tanks
Economic Feasibility
The
cost benefit analysis above has shown that 90 tons of table fish and N 500,000 fingerlings are realizable in
six months of production with a net profit of about N10,000,000 bearing in mind that total fixed and operation costs
have been deducted from the revenue of first production cycle. More profit will
be realizable in subsequent production cycles especially two production cycles
could be achieved in Nigeria. The very high return on investment of this
project signifies that the project is very much Feasible, Viable and
Profitable.
Financial Feasibility
The Commercial Fish Farming Estate Project in Lugbe Abuja FCT and Nigeria at large would be financed
partly by Odeyemi Farms, Federal Ministry of Agriculture and Rural Development
and United Bank for Africa at 30%, 30% and 40% respectively.
legal Feasibility
Before the Odeyemi Farms goes commercial the business name must be registered and a legal advice must be seek on to protect the intellectual property of the farm.
Operational Feasibility
ORGANIZATION AND SUPERVISION OF THE FISH FARM PROJECT
The construction works of the project must be
completed within the stipulated period and in accordance with the estimated budget. Adequate and continuous
supervision of the project is quite
imperative and must be provided by the client to ensure that operations are
carried out to specifications.
Application of all relative permits required for the project should be filed. Necessary sub‐contracts should also be
prepared. In order to ensure smooth execution of the work, targets, resource allocation, duration and support
facilities, a separate chart showing
estimated cost and simple activity schedule are prepared for ease of reference. However, various
alternatives can always be considered
when materials and resources are laid out.
MANAGEMENT AND ADMINISTRATION
The overall responsibility for the management of the
Fish Farming Estate is vested on the Farm Manager. He must be a person of
proven integrity with progressive and dynamic qualities. He should be able to
exhibit traits of managerial capabilities in handling both administrative and
financial activities on the farm. Corps of direct and indirect staff should in
turn support him. In addition to technical knowledge and skills, the farm staff
must possess drive and determination to get the job well done. The management
staff must be prepared to put extra time and efforts, which are considered
vital to the smooth operation of the farm. The staff must also ensure that
production targets are met within specified period. It has therefore become
imperative that merit and rationality be given adequate attention in the
selection of the Farm Manger and other supporting staff. However, the view of
the consultants is that, Fisheries experts should carry out the recruitment
exercise for the company.
FARM BUILDING/INFRASTRUCTURE
It is the view of the consultants that a residential accommodation be
constructed at the project site for immediate occupation by the project staff especially the Farm manger. This will ensure
availability of the Farm manager at
all times.
FISH POND MANAGEMENT
Selection of Fish Species
Although a large number of fish species grow
successfully in fishponds only a restricted number are usually recommended for
culture in ponds. Therefore, fish species exhibiting some of the following
characteristics are usually selected for stocking in ponds:
·
Adaptability to the environment
·
Faster growth rate
·
Efficient converter and utilization of both natural
and artificial fish feed.
·
Hardy and can tolerate adverse environmental
fluctuations
·
Resistance to diseases
·
Palatable with high nutritive value
·
Acceptability to the local community
·
Is of high demand in the market and
·
Has high market price
In order to find all these qualities in one fish is
very difficult, hence fish species having the maximum required qualities are
usually selected for pond culture. The following fish species are highly
recommended for fishpond culture in the fish farm estate:
·
Mud catfish (African catfish)
·
African bony tongue
·
Common carp
·
Nile tilapia
·
Hybrid catfish
Pond Preparation and Management
1. Liming
As soon as the pond construction is completed and
water control structures put in place, the ponds will then be limed using
Agricultural Lime or Quicklime. Lime is usually broadcasted at the pond bottom
at the rate of 450 kg per hectare and will be allowed to stay for about two
weeks. Lime application in ponds is needed to neutralize the acid nature of the
soil, promotes the growth of phytoplankton, destroys harmful bacteria, settles
suspended soil particles in the water and promotes the formation of mineral
elements needed for optimum growth and development of the farmed fish.
2. Fertilization
Fertilizer application in ponds accelerates the growth
of phytoplankton and zooplankton which are
known to be the natural food for farmed fish. Either organic fertilizer (cow
dung, poultry waste, pig waste etc.)
or inorganic fertilizer (NPK, urea, super phosphate etc.) could be used to fertilize ponds. It is usually
broadcasted or dissolved in water or tied in jute bags and suspend in water. The rate of application of
fertilizer depends on the type of fertilizer. About 1000 kg of Inorganic fertilizer is required in
the proposed Fish Farm. Fertilization may not be necessary because concrete and fiberglass tanks will be used for fish
production in the farm.
3. Stocking of Fish
It is best to introduce fish into ponds very early in
the morning or late evening especially when
the sunshine intensity is very low. This is to avoid unnecessary stress
which might cause high mortality of
fish few days after stocking. The fish will be stocked at the rate 10‐35
fingerlings per square meter for
catfish depending on the production system and 10‐50 fingerlings per square meter for Tilapia. It is better to
lower the fingerlings container gently into the pond water so that the fish swim out by themselves.
4. Feeding
As earlier mentioned, fertilizer application in ponds
promotes the growth of phytoplankton which
constitute a primary source of natural fish food. This has to be supplemented
with specially formulated and
compounded fish feed to accelerate the growth of fish at their maximum potentials. To this end therefore,
fish will be fed twice daily with artificial feed at the rate of 5% body weight. A feed mill unit
comprising a hammer mill, mixer, dryer and pelletizer capable of producing 5 tons of feed per hour will
be installed to produce the much-needed fish feed required in the farm. The feed mill will also be used to produce
extra fish feed for sale to other fish
farmers within the locality.
5. Water Quality Management
Regular and frequent analysis of the pond water has to
be carried out. Water quality parameters
such as dissolved oxygen, acidity, carbon dioxide, iron, carbonates, nitrates, nitrite, ammonia, sulphide,
Chloride, temperature, alkalinity,
total hardness, turbidity and conductivity have to be monitored properly to
ensure that they are kept at optimum
levels. To this end, a water test kit will be procured for measuring these water quality parameters
regularly to ensure the growth and survival of farmed fish. Excessive feeding and fertilization must be avoided as they may
pollute the water, which might kill
the fish.
6. Sampling
For effective management, sampling of farmed fish to
determine their growth performance in response
to their feeding has to be carried out on regular basis e.g. monthly. When fish
is sampled, the quantity of feed
required by the fish will change and will correspond to the increase in weight gained for a period of sampling. Regular
sampling ensures an up‐to‐date knowledge
of the growth rate of farmed fish. Scoop net, clap net, cast net or drag net
could be used to sample fish in
ponds.
7. Harvesting
Harvesting is carried out when the farmed fish have
grown to the desired size. To harvest the fish, the pond water is reduced to a
very low level so that fishermen or farm attendants could move through with a
drag net to collect all the fish. Alternatively, the pond water should be
removed or drained completely so that all the fish could be collected.
LIST OF FISH FARMING EQUIPMENT
S/N
|
ITEMS
|
NUMBER
|
1
|
Plastic Bowls (30 litres)
|
10
|
2
|
Water Testing Kit
|
1
|
3
|
Plastic Buckets (50 litres.)
|
10
|
4
|
Secchi Disc
|
1
|
5
|
Weighing Balance (100kg)
|
1
|
6
|
Oxygen meter
|
1
|
7
|
Wheel Barrows (Standard)
|
3
|
8
|
pH meter
|
1
|
9
|
Scoop net
|
1
|
10
|
Thermometer (1000C)
|
1
|
11
|
Cast net/clap ne
|
1
|
12
|
Dissecting Kit
|
2
|
13
|
Drag Net and accessories
|
2
|
14
|
Mortar and pestle (ceramic)
|
2
|
15
|
Mosquito netting material
|
15 bundles
|
16
|
Hypodermic Syringes
|
2
|
17
|
Hand towel
|
20
|
18
|
Microscope (Binocular)
|
1
|
19
|
Hand glove
|
10
|
20
|
Microscope Slides
|
100
|
21
|
Air Pump / Air Blow
|
|
22
|
Feed Mill Unit (Hammer mill, Mixer,
Dryer and Pelletizer)
|
1
|
ESTIMATED TOTAL PROJECT COST
An item total cost quantity amount in Naira.
A Land Acquisition Lump (5.0 Ha) Eight Million Naira (N 8,000,000)
CONSTRUCTION WORKS
S/N
|
Items
|
Number
|
Total
cost
|
1
|
Construction of Earthen/Fibre glass
production ponds Lump
|
20
|
|
2
|
Construction of Concrete production
tanks Lump
|
20
|
|
3
|
Construction of Cottage Indoor Hatchery
Complex Lump
|
1
|
|
4
|
Construction of Boreholes Lump
|
2
|
|
5
|
Construction of Concrete rearing tanks
Lump
|
10
|
|
6
|
Construction of water control structures
Lump Assorted
|
|
|
7
|
Construction of water control structures
Lump Assorted Lump
|
1
|
|
8
|
Construction of Staff Quarters Lump
|
2
|
|
9
|
Construction of Training Hall Lump
|
1
|
|
10
|
Construction of Fish Marketing Centre
Lump
|
1
|
|
11
|
Construction of Feed Mill Complex with
feed store Lump
|
1
|
|
12
|
Construction of Fish Processing Centre
Lump
|
1
|
|
Sub-Total
|
|||
STAFF SALARIES AND ALLOWANCES
S/N
|
Labour cost
|
Salary monthly
|
No. of personnel
|
Total(for 6 Months)
|
1
|
Farm Manager
|
50,000
|
1
|
|
2
|
Marketing Manager
|
30,000
|
1
|
|
3
|
Farm Accountant
|
30,000
|
1
|
|
4
|
Fishery Overseer
|
10,000
|
2
|
|
5
|
Farm watchman
|
10,000
|
4
|
|
6
|
Farm Driver/Mechanics
|
10,000
|
1
|
|
7
|
Farm Attendants
|
10,000
|
10
|
|
Sub-Total
|
||||
Resource Feasibility
It is our utmost view that the most effective channel for marketing the
fish products is to establish a direct link with the owners of cold
stores/rooms dealing with fish and fisheries products. Such outlets could be
utilized for selling the farmed fish. Another channel option is to establish
link with well‐established hotels, restaurants, schools, and guesthouses for
the evacuation of the harvested farmed fish. The third option is to sell fish
directly to the local markets within neighboring state. Our investigations also
showed that local food vendors located within Abuja and its environs would be
too willing to purchase fish on daily basis. This channel should be pursued
vigorously. Private individuals should be encouraged to make small purchases
from time to time. Farmed fish may also be processed, stored and sold at
convenience while brood stock fish and fingerlings will be sold
to farmers at affordable costs.
Market Feasibility
In arriving at a set of marketing strategies for marketing of farmed fish
produced by this project, a number of strategic options were considered. It is
however, our strong view that the adoption of a well‐articulated marketing
strategy is imperative, especially in the areas of distribution, pricing,
promotion and public relations. This will definitely create a market niche for
itself. Fish is of great demand in Abuja and Nigeria at large hence markets are readily available within the project locality, as well
as the entire country at large.
CONCLUSION
Assumptions in estimating the project outcome:
·
Each fish weighs 1.0kg averagely
·
Production cycle of six months
·
10 percent fish mortality
·
Price of One kg of Fish is N500/kg
·
Price of Fingerling/Juvenile is N 20/piece
REFERENCES
·
https://www.slideshare.net>mobile>feasibility>study>on>fish>farming
·
http://kingswayagroservices.blogspot.com/2012/05/feasibility-study-on-fish-farming.html
·
news.oceanhub.com/fish-farming
