A FEASIBILITY STUDY ON CATFISH FARMING

BY

AIYEGORO DORCAS OLAWUNMI

MATRIC NO: 0400

DEPARTMENT: BUSINESS ADMINISTRATION AND MANAGEMENT

LEVEL: HND I

LECTURER: MR OBOBA FRIDAY

Table of Contents
A FEASIBILITY STUDY ON CATFISH FARMING.......................................................0
BY........................................................................................................................................0
AIYEGORO DORCAS OLAWUNMI................................................................................0
MATRIC NO: 0400.............................................................................................................0
DEPARTMENT: BUSINESS ADMINISTRATION AND MANAGEMENT..................0
LEVEL: HND I....................................................................................................................0
LECTURER: MR OBOBA FRIDAY.................................................................................0
EXECUTIVE SUMMARY.................................................................................................2
CHAPTER ONE..................................................................................................................4
INTRODUCTION...............................................................................................................4
FISH SUPPLY AND DEMAND IN NIGERIA..................................................................4
1.0 TERMS OF REFERENCE.........................................................................................5
1.1 PROJECT CONCEPTUALIZATION.......................................................................5
1.2 CHANNELS OF FISH SUPPLY...............................................................................6
CHAPTER TWO.................................................................................................................7
TECHNICAL COMPONENT.............................................................................................7
THE PROJECT....................................................................................................................7
2.0 ASSESSMENT OF THE PROJECT SITE................................................................7
2.1 PROJECT LOCATION..............................................................................................7
2.2 TOPOGRAPHY.........................................................................................................8
2.3 SOIL FACTORS........................................................................................................8
2.4 HYDROLOGY AND HYDROGEOLOGY..............................................................8
2.5 VEGETATION COVER............................................................................................8
2.6 ACCESSIBILITY OF THE SITE..............................................................................9
2.7 TITLE OF LAND.......................................................................................................9
2.8 THE SPONSORS OF THE PROJECT......................................................................9
CHAPTER THREE...........................................................................................................11
PRODUCTION ACTIVITIES...........................................................................................11
THE SCOPE OF THE PROJECT.....................................................................................11
 3.1 ORGANIZATION AND SUPERVISION OF THE FISH FARM PROJECT........11
3.2 MANAGEMENT AND ADMINISTRATION........................................................12
3.3 FARM BUILDING/INFRASTRUCTURE..............................................................12
CHAPTER FOUR.............................................................................................................13
MARKETING STRATEGY..........................................................................................13
FISH POND MANAGEMENT......................................................................................13
Selection of Fish Species............................................................................................13
Pond Preparation and Management..........................................................................14
CONSTRUCTION WORKS..........................................................................................16
STAFF SALARIES AND ALLOWANCES..................................................................16
CONCLUSION..................................................................................................................16
CHAPTER FIVE...............................................................................................................19
PROFITABILITY ANALYSIS.....................................................................................19

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EXECUTIVE SUMMARY
The Commercial Fish Farming Estate project is designed to meet the requirements for the
establishment of a fish farm in Ibarapa Local Government Area of Oyo State. 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 Oyo State 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 above 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 NGN8.0m. This implies
that about NGN16.0m is realizable annually from two production cycles with a return on
investment (ROI) of 100% which signifies that the project is feasible and profitable.

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PAGE 3
 CHAPTER ONE
INTRODUCTION

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.

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1.0 TERMS OF REFERENCE
The main objective of carrying out this study is to establish a viable commercial fish
farming estate at Ibarapa Local Government Area of Oyo State. 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.

1.1 PROJECT CONCEPTUALIZATION

The Commercial Fish Farming Ibarapa Local Government Area of Oyo State has been
conceptualized out of a zealous anxiety to contribute to animal protein supply in Oyo
State 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 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

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the fish farming system and operating methods are tailored to overcome them, if high
yields are to be maintained on sustainable basis.

1.2 CHANNELS OF FISH SUPPLY

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 Oyo State. Our investigations also showed that
local food vendors located within and around Ibarapa town 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.

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 CHAPTER TWO
TECHNICAL COMPONENT

THE PROJECT
2.0 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
 Sponsors of the Project and
 The Consultants

2.1 PROJECT LOCATION

The proposed Commercial Fish Farming Estate is to be located in Ibarapa Local
Government Area of Oyo State. The site is excellent as it is very close to the main Dual-
carriage way on PTI 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.

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2.2 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

2.3 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.

2.4 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.

2.5 VEGETATION COVER

The proposed project site falls within the northern guinea savannah with light vegetation
which has to be cleared to pave way for construction works in the farm. Elements of
human activity were noticed in the proposed site as it has long been used for the
cultivation of arable crops over the years. The farm has a well-established mango
plantation which will provide shade for the farmed fish.

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2.6 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.

2.7 TITLE OF LAND

David Farms hopes to acquire 5 hectares of land at the said location. Details of this is
available under the financial analysis.

2.8 THE SPONSORS OF THE PROJECT

The Commercial Fish Farming Ibarapa Local Government Area of Oyo State would be
financed partly by David Farms, Federal Ministry of Agriculture and Rural Development
and Fidelity Bank Plc., at 30%, 30% and 40% respectively.

2.9 LIST OF FISH FARMING EQUIPMENT

• Plastic Bowls (30 litres) 10 pcs

• Water Testing Kit 1 no.

• Plastic Buckets (50 litres.) 10 pcs

• Secchi Disc 1 no.

• Weighing Balance (100kg) 1 no.

• Oxygen meter 1 no.

• Wheel Barrows (Standard) 3 nos.

• pH meter 1 no.

• Scoop net 1 no.

• Thermometer (1000C) 1 no.

• Cast net/clap net 1 no.

• Dissecting Kit 2 pcs

• Drag Net and accessories 2 pcs

• Mortar and pestle (ceramic) 10 pcs

PAGE 9
• Mosquito netting material 15 bundles

• Hypodermic Syringes 2 pkts

• Hand towel 20 pcs

• Microscope (Binocular) 1 no.

• Hand glove 10 pcs

• Microscope Slides 100 pcs

• Air Pump / Air Blow 10 pcs

• Feed Mill Unit (Hammer mill, Mixer, Dryer and Pelletizer) 1 pcs.

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 CHAPTER THREE
PRODUCTION ACTIVITIES

THE SCOPE OF THE PROJECT

The Proposed Commercial Fish Farming Estate in Ibarapa Local Government Area of
Oyo State 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.

3.1 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

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prepared for ease of reference. However, various alternatives can always be considered
when materials and resources are laid out.

3.2 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

3.3 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.

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 CHAPTER FOUR
MARKETING STRATEGY
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 Oyo State hence markets are readily
available within the project locality, as well as the entire country at large.

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

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  Hybrid catfish

Pond Preparation and Management

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.

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.

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.

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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.

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.

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.

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

PAGE 15
pond water should be removed or drained completely so that all the fish could be
collected.

CONSTRUCTION WORKS
 Construction of Earthen/Fibre glass production ponds Lump 20 nos. 6.0m
 Construction of Concrete production tanks Lump 20 nos. 8.0m
 Construction of Cottage Indoor Hatchery Complex Lump 1 unit 4.0m
 Construction of Boreholes Lump 2 units 4.0m
 Construction of Concrete rearing tanks Lump 10 nos. 2.8m
 Construction of water control structures Lump Assorted NGN 400,000
 Construction of Farm House (office, store and net loft)
 Lump 1 unit 4.0m
 Construction of Staff Quarters Lump 2 units 6.0m
 Construction of Training Hall Lump 1 unit 4.0m
 Construction of Fish Marketing Centre Lump 1 unit 2.8m
 Construction of Feed Mill Complex with feed store Lump 1 unit 4.0m
 Construction of Fish Processing Center Lump 1 unit 2.5m
Sub Total NGN 48.8m

STAFF SALARIES AND ALLOWANCES

 Farm Manager (1 no.) @N50,000 per Months X 6 Months N300,000
 Marketing Manager (1 no.) @N30,000per Months X 6 Months N180,000
 Farm Accountant (1 no.) @N30,000 per Months X 6 Months N 180,000
 Fishery Overseer (2 nos.) @N10,000 per Months X 6 Months N120,000
 Farm watchman (4 no.) @N10,000 per Months X 6 Months N240,000
 Farm Driver/Mechanics (1 no.) @N10,000 per Months X 6 Months N60,000
 Farm Attendants (10 no.) @ N10,000 per Month X 6 Months N600,000
Sub-Total NGN 1.68mis considered, the profit will be much higher

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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 NGN 500/kg
 Price of Fingerling/Juvenile is NGN 20/piece

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PAGE 18
 CHAPTER FIVE
PROFITABILITY ANALYSIS
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 N10.0m
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.

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