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Starting out in Agriculture Fish Farming

Are you enthusiastic about starting a business in the agriculture sector? Do y


ou
need a sample catfish farming business plan template? Then below is an indepth guide for starting a catfi sh farming business in Nigeria or anywhere els
e.

There is so much money to be made in aquaculture (Tilapia fish farming, cat


fi sh
farming, shrimp, prawn and lobster breeding); if done right. There are so ma
ny
businesses you can invest in and still make huge profits! You dont have to b
ang
your head developing softwares or importing and exporting; you can go into
catfi sh farming, and still be successful.

Catfish farming is a lucrative form of fish farming business. I have seen seve
ral
unemployed folks make it through this business; you too can also be success
ful if
you understand the real keys to success.

Six Reasons Why Catfish Farming is a Profitable Business


i. Fish is one of the cheap sources of protein and a good substitute for meat.
In
fact, no meal is consumed in Nigeria without fish or meat. Secondly, fish is a
source of white meat and is recommended by health practitioners over red
meat.

ii. The population of Nigeria is about 150million and this population is estimat
ed
to overtake that of the United states by year 2050. Now what does this mea
n for
catfi sh farmers? The truth behind this statistics is that there is a ready mark
et for
fish and the demand for fish cannot be met by local producers alone.

iii. There are a lot of recreation centers in Nigeria especially restaurants, fas
t
food outlets and bars; and fish (Point and Kill or Fish barbeque) is one of the
favorite food on the menus of these hangouts. You can even make money by
focusing on being a regular catfi sh supplier for these restaurants and bar.

iv. The operating cost for catfi sh farming (feed and maintenance) is very low
especially when compared to poultry farming.
v. In the month of December 2013, the federal government of Nigeria
implemented and enforced a law banning the importation of frozen fi sh. This
move was made to encourage the local production of fish. Now the truth is th
at
the demand for fish cannot be met by local producers alone, so there is pres
ently
a market gap waiting to be filled by smart entrepreneurs who can be bold
enough to venture into fish farming.

vi. There is a massive support and established credit line put in place by the
federal and state governments for farmers (both crop and livestock farmers).
Also, there is a fund set aside every year by the Central Bank of Nigeria and
other commercial banks in Nigeria to encourage and support farmers.

Starting Small Scale Catfish Farming in Nigeria Sample Business Plan Templ
ate
What You Need to Get Started

a. The Right Mindset

The first and probably the most important key to starting a successful catfi s
h
farm is the right mindset. Before embarking on this business venture, you m
ust
bear in mind that success in the agricultural sector, especially livestock bre
ed is
not instantaneous. So you must be prepared to endure the challenges of the
business and keep improving your farm equipment and breeding methodolog
y
over time.

b. The Basic Knowledge

The need to have at least the basic knowledge of any business you want to
venture can never be over emphasized. Never invest a dime to setup a catfi
sh
farm without first investing time to learn the fundamentals of catfi sh farming
(how the fi shes feed and reproduce, their favorite habitat, common diseases
that
aff ect them, etc).

A good way to get this knowledge firsthand is to visit a catfish fish farm and
make all the inquiry you need. It is even more better if you can serve as an
apprentice to a catfi sh farm owner for at least 60Days, this will equip you wi
th
both knowledge and experience. You should also read book and attend semin
ars
relating to catfish farming and management.
c. A Properly Conducted Feasibility Study

A feasibility study is important as it will help you identify the strengths,


weaknesses, threats and opportunities existing in the fish industry. It will als
o
help you ascertain the best place to site your fish farm, the total cost it woul
d
require to set up the farm and also prepare you for the challenges ahead.

d. A Well Written Business Plan

If you are really serious about setting up a catfi sh farm, then you should inv
est in
writing a business plan. This is very important as it helps you prepare and
execute your growth strategies properly. Secondly, you need a business plan
if
you intend to raise capital, or secure a loan from the bank for your fish farm.

Lastly, you will need a business plan to access the various funds and suppor
t line
established by the government and other institution. So start writing your
business plan today. You can seek the services of an agriculture business

consultant if you need help computing the financial estimates and projection
s.

e. You Need a Land To Use

Before going into the catfish farming business, you need to acquire or lease
at
least a full or half plot of land in a good location. The land should also be
accessible by road. This is important as you would want your potential custo
mers
to experience diffi culty while trying to locate your farm to buy your produce.
As
soon as the land is available, you can start allocating for each task. There s
hould
also be a decent space for the farm house ponds, and a good location for
drainage facility.

f. Reliable Water Supply Source

To operate your fish farm effi ciently, overhead tanks must be installed, and
borehole must also be considered; as its the best source of water for catfi sh
farming. You must ensure that there is a constant supply of water on a daily
basis
as the fi shes need it. The water system must not fail even if it means you
backing it up with a reliable water facility.

g. Pond Construction

Don try to fi x the pond yourself. You need the service of a consultant. Witho
ut a
well constructed pond, your business wont be able to stand the test of time;
and
you may end up spending more in the LONG RUN! You may choose to go for a
plastic pond tank to save cost, or you can opt for building the concrete pond
s.

How to Succeed in the Catfish Farming Business


1. Know your market

What are their needs?


What are the things they crave for?
Whats your market demand?
What are the things that keep them awake at night?
It is your duty to identify and answer these questions. You need this informat
ion
to make it BIG! If you can provide solution to them, you wont have any prob
lem.
You must tailor your production to meet your market requirements.

2. Start small

This reminds me of a verse in the bible that says,

Despise not the days of little beginnings.


precept upon precept, line upon line, here a little, there a little.
If you want your tree to become a forest, then you should not despise the da
ys of
little beginning. Invest wisely. Dont be in a haste to expand. Also, you shoul
d not
spend your profits on frivolities; instead, build more ponds for production.
3. Seek advice from proven experts. Select those with proven track record in
the
business and seek advice from them. This will help you avoid costly mistake
s.

4. Manage your business wisely.

5. Adopt appropriate production technology

6. Dont be afraid to take business risks. You wont know it works unless you
make an attempt.

7. Be willing to change sick fi shes for your customers at no charge. Without


your
customers, you wont go far in the business. Honor promises to your custom
ers
and change any fish they dont like. It is very important.

Two More Tips for Running a Successful Catfish Farming Business


Note: If you really want to make lots of money in this business, you have to f
ocus
your attention on breeding from the infant stage.

A. The Breeding Stage

Before you venture into catfish farming, you need to get a hold of the fingerli
ngs
and know the price. They can be obtained mainly through hormonal induction
or
artificial production, but if you prefer producing your own fertilized eggs, you
may have to make use of the homoplastic gland suspension.

Common catfi sh species found in Nigeria:

Clarias nigro-digitatus
Heteroclarias
Clarias gariepinus
Heterobranchus bidorsalis
Heterobranchus sp (commonly found in the South Eastern part of Nigeria)
Clarias spp (this specie dominates the south west)
B. Feeding Methods

You have to ensure your feeds contain essential nutrients like lhysine, argini
ne
and methionine. The best type of meal to go for is fi shmeal; but due to its hi
gh
cost, it Is advisable not to go for it (that is if you are just starting out on a lo
w

budget); instead, you can use other conventional means such as Soya bean
cake, groundnut cake or plant residue (these conventional foods also meet th
e
nutrient requirements of catfi sh).

When feeding your catfi sh; it is advisable to do it on a particular section of t


he
pond instead of just spraying it across the water surface (this helps regulate
the
wastage of feed).

9 Challenges of Starting a Fish Farming Business In Nigeria


Fish farming is a very lucrative business and a profit maker all year round. T
he
reason for its profitability can be attributed to the fact that it is a food and it
is
always in demand. In fact, the demand for fish can never be met because of
the
massive population we have especially here in Nigeria.

However, there are certain challenges commercial fish farming entrepreneur


s
face worldwide and these challenges are also peculiar to all branches of fish
farming like Tilapia fish farming, Catfish farming, etc. So regardless of wheth
er
you are in Ghana, India, Pakistan, Canada, USA, South Africa, etc; you will s
urely
find this information useful.

Fish farming is capital intensive.


It is labor or management intensive
Cannibalism and high mortality rate of fingerlings
Pest and predators
Lack of market orientation
There is a ready market for fish both locally and internationally but most fish
farmers have the habit of looking for customers to purchase their fish when t
he
fish are matured for sale. Now this poor orientation and lateness in scouting f
or

customers makes the marketing of fish too poor.

As the fi shes keep on feeding, the pond gets to its maximum loading point a
nd
the fish will stop growing. The more the fi shes stays in the pond after they h
ave
stopped growing, the lesser the profit margin. So it is advisable for fish farm
ers
to always begin scouting for customers as early as possible before the fi shes
mature for sale, so that it will be easier for them to market the fi shes withou
t
incurring any extra cost or loss.

Lack of suitable farm site


Inability to acquire a suitable location for their fish farm is another challenge
of
establishing a fish farm successfully. A good fish farm should have available
water supply, good soils for pond construction (e.g. rocky places), accessibili
ty to
markets and supplies, etc.

Lack of proper planning and design


Lack of proper planning and design is another factor facing fish farmers in
Nigeria and other regions. This factor can aff ect the success rate of your fish
farm. Ponds that are not erected properly, may result to leakage and lot of
unplanned expenses; which reduces your profit potential.

Poor investment planning


Most consultants and newspaper reports indicate that fish farming requires li
ttle
investment and output is in large profits but the truth is that it is not so. Man
y
farmers also have the mindset that to become a commercial fish farmer, yo
u
have to be big and acquire several big ponds. Thus, they resort to constructi
ng
many ponds at a time, which aff ects their cash flow and tie down their capit
al. As
a result of this, it takes some farmers long to start production while those th
at

commence production may only be able to startup with one pond after all th
e
investment made.

Lack of technical experience


When it comes to fish farming, whether freshwater or salt water; some
technicalities are involved. Therefore, getting the technical know-how or
experience might prove difficult to the farmers especially those whose farms
are
located in rural areas.
Now the challenges listed above are the common ones being faced by fish
farmers on a daily basis. So by providing with this information, we believe yo
u
will be better equipped when you eventually venture into fish farming.

In conclusion, I want to state categorically that catfi sh farming is an untappe


d
goldmine; especially in Nigeria. You can make a living off it by meeting the ri
ght
people and devouring the right information.

Nigeria Economic Outlook

There are prospects in Nigeria for sustained growth driven by an improved


performance of the key non-oil sectors agriculture, information and
communication technology, trade and services but decline in the contributi
on
of the oil sector may dampen the positive outlook.
Social indicators are beginning to improve as efforts to achieve the Millenniu
m
Development Goals are intensified through the implementation of socialsector
reforms, but the northeast region still faces conflict-related challenges.
Adding value to exports of primary products, which is the cornerstone of the
Agricultural Transformation Agenda, could help Nigeria climb up the value cha
in
towards industrialisation and provide opportunities to bring the large informal
sector progressively into the formal economy, thereby making growth more
inclusive and offering a high potential for job creation, increased income and
poverty reduction.

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