Ashonibare, B.I.

Ayanda, J.O.

Ladu, B.

Olufeagba, S.O.

English

Aquatic Commons

ABSTRACT
NVESTMENT FEASBUTY N GOLD FSH(Carassus auratus)
Olufeagha S.O; Ladu B; Ayanda J.O and Ashonibare B.I
National Institute for Freshwater Fisheries Research NIFFR,
New Bussa, Niger- State
p roduction of Carassius auratus in many parts of the world except Nigeria is a very profitable businesswith some operational tecimiques and specialization. Natural propagation (in Hapas and Aquaria
tanks) and monitoring of survival rate was conducted for a period of seven weeks. The cost ofbroodstocks
acquisition, breeding facilities, estimated net income, return on sales and total invested capital shows that
investment in Gold fish production could be a major source of billions of dollars through exportation being
the second most popular ornamental fish after Angelfish. Paired broodstocks spawned the third day and
eggs hatched after seven days of incubation. Optimum water qualities were 4.4mg/i for DO2. 6.7 for pH and
30°C for H20 temperature. After rearing of hatchlings for seven weeks, they had attained a mean weight of
28.2gm (10.5cm) that is ideal for sale in both local and foreign markets. Two production media were used
in this experiment, the results obtained indicated that hapas in earthen ponds produced the best results in
terms of weight and increase in length. Specifically, the cash flow, the depreciation profit and loss account,
loan repayment schedule if the loan is sought from the bank or any other financial institutions and the
viability indicators of Net Present Value (NPV) and internal Rate of Return (IRR) were considered over a
period of 5 years. Three viability indicators namely Net Present Value NPV). Internal Rate of Return (IRR
and Payback Period (PRP) were assessed. Any one of the these indicators or combination of them are the
key viability determinant of a bank funded projects. In the case of Gold Fish Venture, the Net Present Value
is positive atN473726.8 the IRR 179.5% and the PBP at 6 months all indicated the project is feasible and
viable. The IRR is far higher than the interest rate of3O 35% currently obtainable from most of the banks.
INTRODUCTION
Many ornamental species are native of Africa for
which we have little understanding of their breeding
techniques. The species includes Cvarassius auratus
(Plate 1) Epiplatys bifasciatus, (Plate 2)
Tricogaster tricopterus (Plate 3) etc.
Ornamental fish trade is flourishing world wide yet
Nigeria's share of the trade is very meager.
According to Ninawe (1997), the estimate of global
trade in ornamental fish is worth about $1.7 billion
per year. Singapore, Malaysis, I-Ionh Kong, Taiwan
and Japan control about 60% of this huge sum. 30%
is controlled by South Africa, while Africa,
Caribbean and other countries contribute 10%.
Odunaiye (1986) has reported that Nigeria
159
contribute about 20% of the African market share.
Nigeria has a vast species of tropical aquatic life and
the right climate to breed them for export. Major
importers of ornamental fishes are United State of
America (US), Japan, Germany, United Kingdom
(U.K) and Netherlands. US alone accounts for 54%
of the estimated wholesale trade in ornamental fish.
The aims of this work were to see the possibility of
breeding Carassius auratus in controlled
environment and the profitability of investing in its
production
MATERIALS AND METHODS
BREEDER' S COLLECTION
This experiment was carried out in (i) three (3) sets
of hapas measuring Im x im x im suspended in the
experimental earthen pond measuring 4m2, (ii) two
(2) glass aquaria tanks of dimensions 60cm x
30cm x 30cm were used. Each of the aquaria tanks
had portable air pump (aerator) for aeration.
Broodstocks used for this experiment were
collected from Ibadan and transported live to
experimental site in an open Jeri can and
acclimatized for three (3) weeks in ponds.
PAIRING OF BROODSTOCKS AND
SPAWNING
After acclimatization, the broodstocks were
separated into sexes and their weight, total length
and standard length were taken. Gravid
broodstocks were paired for spawning in ratio 1:1,
that is 1 male to 1 female, in (1) an already
mounted nylon net hapas with kakabans which
serves as eggs collector. The hapas were labeled
Hi, H2 and 113 (2) Glass aquarium tanks of
dimension lmX lmX 1m3
After spawning, the broodstocks were removed
from the hapas and aquaria tanks and kept in the
holding tanks. This is to avoid the broodstocks from
eating up the eggs that were spawned. After three
weeks of separation, the broodstocks were paired
again the second time.
DETERMINATION OF WATER
QUALITY PARAMETERS
The water quality parameters taken were the
temperature. dissolved oxygen, pH. All the
parameters were determined as described by Boyd
(1977).
160
INVESTMENTS FEASIBILITY AND
COSTING
Investments and costing of a simple breeding and
rearing for 7 weeks as obtained in New Bussa were
calculated to show cash flow analysis, depreciation
projected profit and loss account, loan repayment
schedule and economic viability indicators
assuming the project is to be sponsored by loan
from bank.
RESULTS
Two days after pairing, spawning took place in the
three hapas Hi, H2 and 113; and hatchlings were
observed on the seventh day. At hatehlings, the fry
were just like mosquito larvae having the size of a
pinpoint head, swimming towards the surface of the
water. The mean temperature was 30°C.
The second and third spawning took between six to
eight days after pairing at between 29° to 30°C.
The first set of spent fish took five weeks to become
gravid again, and when paired spawned four days
after. At exactly ten (10) days after the second
spawning from HI, the female was gravid again.
The length and weight measurements are presented
in Table 1. The mean values of the weight and
length increase of C. auratus in aquaria tanks and
hapas suspended in experimental earthen ponds are
presented in Table 1. The final mean weight and
length of those raised in hapa suspended in earthen
ponds were 10.5gm and 11.1cm, while those raised
in aquaria tanks were 5.6gm and 6.6cm
respectively. Those in earthen ponds performed
better. The mean water temperature, pH, and
dissolved oxygen were 29.1°C, 6.8 and 4.3mg/i for
ponds and 28.1°C, 7.4 and 4.6mg/i respectively for
aquaria tanks (Table 2).
Although two production media were used in this
experiment, the results obtained indicated that
hapas in earthen ponds produced the best results in
terms of weight and increase in length. Therefore,
the investnient viability analysed here are those of
the earthen ponds, which is the most recommended
for prospective investors. The weight attained in
this production medium is more attractive than the
other medim.
Speeificiilly, the cash flow, the depreciation profit
and loss account, loan repayment schedule if the
loan is sought from the bank or any other financial
institUtions and the viability indicators of Net
Present Value (NPV) and internal Rate of Return
(IRR) were considered over a period of 5 years.
The cash flow analysis of possible income in the
year 1 and the loan form bank in year 0 i.e year of
setting up is shown in Table 3. Table 4 shows the
depreciated value of fixed assets that will be
considered operational expenses in each year. This
CONCLUSION
The results obtained after studying the natural
propagation and survival rate of Garassius auralus
shows that with good management and conducive
environment the fish could he bred naturally without
any artificial inducement
Also, C auratus if adequately fed under good
climatic condition can spawn regularly at least every
161
is normally used to arrive at the Net Profit as shown
in Table 5. The repayment schedule of the loan
obtained from the bank over the projected period of
the venture is shown in Table 6. The annual
principal and interest payable to the bank are
shown in Table 6. Again this is used in calculating
the Net profit at the end of each year. Table 7
considers three viability indicators namely Net,
Present Value (NPV), Internal Rate of Return
(IRR) and Payback Period (PRP). Any one of these
indicators or combination of them is the key
viability determinant of bank$unded projects.
In the case of Gold Fish Venture, the Net Present
Value is positive at N473726.8; the IRR 179.5%
and the PBP at 6 months all indicated the project
is feasible and viable. The IRR is far higher than
the interest rate of 30 35% currently obtainable
from most of the banks. The 6 months payback
period is also short enough to remove the fear of
the banks on releasing the amount requested for
by the investors
ten to fourteen days. Again C auratus will thrive
very well in pond. The growth rate which was
determined by the increase in weight and length is
effectively enhanced in the hapa suspended in
earthen pond compared to other rearing medium
like the aquarium tank because of extra nutrients
from the pond.
TABLE 2: MEAN TEMPERATURE, (°C), DISSOLVED OXYGEN (DO 2) AND
PH OF REARING MEDIA.
Weeks Mean Temperature
(°C)
Mean DO2
(mg/i)
Mean pH
1 30 *28 4.2 * 4.8 6.4 *7.2
2 30 *26 4.4 *47 6.7 *73
3 31 *27 4.2 *4.6 6.9 *74
4 30 *30 4.7 4.5 7.6 *75
5 29 *29 4.2 *4.6 6.4 *74
6 26 *28 4.2 *4.6 6.7 *7.6
7 28 *29 4.4 *48 6.7 *74
Mean 29.1 *28.1 4.3 *46 7.2 *74
FISH SHIPMENT FACT FILE
Typical income statement of a small beginner shipper
Shipment to Europe (say Belgium) of 28 boxes containing five species of ornamental fish viz:
Longnose, reed, butterfly, debauwi and robertsi.
Total Sales US $1858.00
@N100/dollar =N185,800.00
Packaging charges for 28 boxes = $ 168.00
@1O0ldo1lar = N16,800
Total Income N202,000
Procurement Cost
FishesN2l,900
Packaging N7,750
Transport N4,000
Labour and Quarantine N5,000
Airport protocol N6,000 N44,650
Gross Margin Ni 67,350
I Repeat business bi-weekly.
* Figures asterisked were readings from aquaria tanks
162
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TABLE 3: CASH FLOW ANALYSIS - GOLD FISH VENTURE
S/n Particulars Year 1
N
Year 2
N
Year3 Year 4
N N
Year 5
N
A Loan from Bank 100,000 --- --- ---
Sales from Pond 405,000 405,000 405,000 405,000 405,000
Total 505,000 405,000 405,000 405,000 405,000
B Fixed Capital Cost
i. Earthen Pond 2,500 --- --- --- ---
ii. 1 Hapa Net 15,000 .-- --- - ---
iii. Aerator 1,000 -- --- --- ---
Sub Total 18,500 -- --- -- ---
C. Operating Cost
i. 5 pairs of Broodstock at
N600/pair 3,000 3,000 3,000 3,000 3,000
ii. Electricity consumption 4,000 4,000 4,000 4,000 4,000
iii. Feed (45% CR of 50kg) at
20,000 20,000 20,000 20,000 20,000 20,000
iv. Labour (1 OND) at
NI 0.000/month for 3 months 30,000 30,000 30,000 30,000 30,000
v. Miscellaneous 24,500 --- --- --- ---
Sub Total 81,500 57,000 57,000 57,000 57,000
D. Loan Repayment plus interest
at 30% 50,000 44,000 38,000 32,000 26,000
E. Personal Drawings 100,000 100,000 100,000 100,000 100,000
F. Total Cash Outflow 225,500 201,000 201,000 201,000 201,000
G Eipected Cash Intlow 279,500 204,000 204,000 204,000 204,000
TABLE 4: DEPRECIATION - GOLD FISH VENTURE
Annual P epreciated Value
Equipment Value Life Span Year 1 Year 2 Year 3 Year 4 Year 5
• EN (Yrs) EN EN3 (4
Earthen Pond 2,500 10 250 250 250 250 250
FlapaNet 15,000 5 3,000 3,000 3,000 3,000 3,000
Aerator 1,000 3 333.33 333.33 33333 333.33 333.33
TOTAL 3583.33 3583.33 3583.33 3583.33 3583.33
164
TABLE 5: PROJECTED PROFIT AND LOSS ACCOUNT GOLD FISH
VENTURE
Particu1arc Year 1(N Year2( Yeir3( Year4( Year5(N)
Income from sale of Gold Fish
Less Annual Operating Cost
Operating Profit
Less Depeciation
Gross Profit
Less Interest on loan at 30%
405,000
57,00a
405,000
57,000
405,000
57,000
405,000
57,000.
405,000
57000
348,000
3583 33
348,000
3583 33
348,000
3583 33
348J100
3583 33
348,000
3583 33
344416.67
30,000
344416.67
24.000
344416.67
18,000
344416.67
12,000
344416.67
6,000
profit before Tax
Less Compaiiy Tax at 45%
314416.67 320416.67
141487.5 144187.5
326416.67
14887.5
332416.67
149587.5
338416.67
152287.7.,
NetProfit 17292917 17622917 17952917 18282917 18612917
% of Net profit to Total investment 172.9% 176.2% 179.5% 182.8% 186.1%' F
IABLE 6 LOAN REPAYMENT SCHEDULE - GOLD FISH VENTURE
Year Annual Repayment(N
Principal Interest at 30%
(N (N
Outstanding Balance
(N
0 1000,000
1 50,000 ' 20,000 30,000 80,000
60,0002 44 000 20 000 24,000
3 38,000 20000 18,000 40,000
4 32,000 20,000 12,000 20,000
5 26 000 20,000 6,000 ---
FABLE 7 ECONOM IC VIABILITY INDICATORS GOLD FISH
VENTURE
Year Income Expenditure Benefit
Actual N
.
Discounted
Value at 30%
Actual N Discounted
Value at 30%
Actual N
'
'
Discounted
Value at 30%
0 --- --- 18,500 18,500 -18,500 -18.500
1 405,000 311526 ' 207.000 159224.4 198,000 152301.6
2 ' 405,000 239638.5 ' 201.000 118931.7 204000 120706.8
3 405000 184356 201,000 914952 204,000 92860.8
4 405,000 141790.5 201,000 70370.1 204,000 ' 71420.4
5 40'5000 109066.5 201,000 54129.3 ' 204,000 54937.2
Net Present Value (NPV) = 473726.8
Inteinal Rate of Return (IRR) = 179 5%
Payback Period (PBP) 6 Months
.165
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Adeniuyi, A. I. (1999): Goldfish production seminar (Unpublished) in conjunction with Terrace
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FAQ (1976): Quarterly news elegies-off Aquaculture research and Development. FAO Aqua. Bull Vol.4
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FAQ (1985): Common carp Pt I mass production of eggs and early fry FAO training series.
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199,126.
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LINNE (1958): The Goldfish production manual Ontario N5P 3W7, Canada.
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• Pg35-2000.
Ninawe (1997): Ornamental fish culture New prospects in India. Fish farmer's International File
March/April 1997 Vol.3.
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AquariurnfishFlSONproceedings pg261 269.
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166
PLATE 1: Photo macrograph of Carassius auratus
Plate 2: Photo macrograph of Epiplatys bifasciatus
Plate 3: Photo macrograph of Tricogaster tricopterus



Investment feasibility in Goldfish (Carassius auratus)

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Investment feasibility in Goldfish (Carassius auratus)

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