BUSINESS PLAN

FOR

IB. NAF INTEGRETED FARMS

SABON GARI, JALINGO, TARABA STATE, NIGERIA

PREPARED

BY

IBRAHIM NAFIU

08144007244

nafiuibrahim@gmail.com

FOR
HYELANSINTA, WOMEN, CHILDREN AND
YOUTH INITIATIVE
IN
COLLABORATION WITH TU-E CAPITAL
INVESTMENT

AUGUST, 2023.
 TABLE OF CONTENT.
CHAPTER ONE
1.0 BUSINESS OVER VIEW.
1.1 Description of the business.
1.2. Vision and mission statement
1.3. business objectives
1.4 critical success factor of the business
1.5 Value proposition
1.6 Current Status of the business
1.7 Legal requirement
1.8 Contribution to local and National Economy
CHAPTER TWO.
2.0 MARKETING PLAN
2.1 Sales and Marketing Plan
2.2 specific Strategy
2.3 Opportunity
2.4 Pricing Strategy
2.5 Payment Option

CHAPTER THREE.
3.0 PRODUCTION PLAN/OPERATIONAL PLAN.
3.1 Actual Production Process
3.2 Why Company is Cited
3.3 Business Location
3.4 Facility And Equipment
3.5 Start-up Cost
3.6 Required Start-up Capital
3.7 Loan Needed
 CHAPTER FOUR.
4.0 ORGANISATIONAL AND MANAGEMENT PLAN
4.1 Ownership of the business
4.2 Profile of the promoter.
4.3 Details of Employee

CHAPTER FIVE.

5.0 FINANCIAL PLAN.

5.1 Financial assumptions

5.2 Start-up Capital Estimation

5.3 Source of fund

5.4 Security for Loan

5.5 Loan Repayment Plan

CHAPTER SIX.

6.0 BUSINESS RISK AND MITIGATION.

6.1 Challenges and Risk

6.2 SWOT analysis

6.3 Conclusion

LIST OF TABLES

Table.1.7 Legal Requirement

Table.3.5 Start-Up Cost

Table 5.0a Summary of Financial Plan

Table.5.0b Revenue Projection

Table 5.0c Cash Flow Projection

Table5.0d Projected Profit and Loss

 EXECUTIVE SUMMARY

IB. Naf Integrated Farms catfish business will be established to meet the fish demand in the

community. It will be located in Sabon-gari, Jalingo state. The main economic significant of

the business is to contribute towards narrowing down the fish demand-supply gap deficit in

Nigeria as well as the supply of proteins and micro nutrients for feeding the teeming

population of Jalingo, North-east, North Central and Nigeria at large.

The business would be managed by the Proprietor. He is experienced in the field of fish

farming and have managed different businesses.

The Fish Industry is a lucrative business as the demand for fish in the country is growing

geometrically, the opportunity to expand is necessary because of the growing demand for fish

and due to some health benefits attached to consumption of fish as compared to consumption

of meat. With our dominance, and being the only and pioneering fish farm in this locality, we

would flood the whole market with our fish. The business will be a sole proprietorship with

the proprietor required to contribute capital and also sourced for credit facilities.

The risk of the business is mainly getting a market and we have already identified our target

market. The cost benefit analysis of this plan shows that in the startup year, with 120,000

fingerlings in stock and projected sales of 110,700 adult fish in one circle which is half a

year, we would make N187,020,000. This implies that about N114,040,000 is realizable

annually for two (2) production cycle which indicates that the project is very much feasible,

viable and very much profitable and as such worth investing

Mission

To provide healthy fish of high nutritional value and affordable prices that improves people’s

lives and high-quality while improving the lives and livelihood of Jalingo populace.
Required Startup Capital

The required startup capital is one Hundred and fifty Million naira (N150,000,000.00k) only.

Loan Needed

The loan needed is one Hundred and fifty Million Naira (N7,304,400.00k) only.

To be finance by Hyealasinta Women and Youth Empowerment in collaboration with

TU-E capital Investment Program.

Our anticipated financial projection for one year will be as follows

Gross profit will be: 414,040,000

Expenses will be:137,304,400
Net profit: 206,735,600
Net profit after tax:6,734,400.

The Risk Associated to the Business are as follows:

 Disease outbreak which may lead to mortality of finger lines hence los.
 Changes in weather and environmental factors
 Theft and insecurity
 Natural Disaster.

And our business will adapt the following strategy to mitigate them
Invitation of professional medical attention
To improve the climate and Environment of the farms.
 CHAPTER ONE.

BUSINESS OVERVIEW.

1.1 Description of the Business.

The name of the farm is IB. Naf integrated farms, and the business will be located in

Sabon-gari, Jalingo, Taraba state, we will be specialized in catfish hatching, sales of

fingerlings and table size fish. Our targeted households, restaurant and outside

markets, hotels, civil servants, students and lecturers.

1.2 Vision and Mission Statement.

Vision

To become the biggest and leading fish farm in the state

Mission

To provide healthy fish of high nutritional value at affordable prices that improves

people’s lives and high-quality while improving the lives and livelihood of Jalingo

populace.

1.3 Business Objectives.

 To creates more job opportunity to the youths and individuals living within the farm

location.

 To creates other branches of the Farm in some location like Numan, Yola Town,

Gembu, Bali, Takum and Mubi.

 To have a customer base of 45,000 in our first year of production.

 To meet up the market demand in Jalingo, adamawa, Gombe state.

1.4. Critical Success Factors of the Business Are:

Good knowledge of business

Availability of raw materials

Highly profitable

Ready markets.

Access to working capitals and business strategy

Creation of job opportunity

Government enhancement and policy implementations

1.5. Value Propositions

IB. Naf Integreted farms are result oriented and will produce healthy fingerlings and

table size catfish through the use of improved technique and proper management.

1.6. Current Status of The Business.

Currently IB. Naf Intergreted farms is a start-up business that is ready to be establish

in few month from now. The farm will be located at Sabon-gari, Jalingo, Taraba State.

We will acquire land, excavates the ponds, drill borehole and also mounted the water

tanks for production to take place.

1.7. legal Status/Requirements

IB. Naf integrated farms is a sole business own by Fatima Mamman and its is

currently undergoing government registration with cooperate affairs commission (CAC), and

also Jalingo State Board of Internal Revenue for Proper operations.

 Table.1.7. Legal Requirements

S/N LEGAL REQUIREMENT BUDGET DETAILS ON FREQUENCY PAYMENT

1 Cooperate Affairs Commission 120,000 -
(CAC)
2 local government Permits and 150,0000 -
licenses
Total 270,000 -

1.8 Contribution to the Economy of the State and the Nation.

Fish is one of most essential food in our daily meals, hence the need of fish farming in

large quantity to meet the demand in our society is required. IB. Naf Integreted Farms

will be outstanding fish farm in Taraba states that can benefit the state and the nation

through:

Our customers Satisfaction

Fish will be readily available to our customer at an affordable price and also any time

of the and if possible delivery.

Creation of Job opportunity.

IB. Naf Integreted Farms will create job opportunity to individuals within the

community and environ hence reducing the rate of unemployment.

 CHAPTER TOW

MARKETING PLAN

2.0. MARKETING PLAN

2.1. Sales and Marketing Strategy

The demand for catfish is non-seasonal commodity, we have plans to reach out to

other market in the North Central states for faster sales and better profit, we plan to

also employ the service of the available modern fish driers as we have identified that

dry fish yield more profit and it is preserved and sold at will. We are also planning to

contact Bulk cold room buyers from target market, who are still looking for more fish

supply as the fish demand and fishes’ stock have not been able to satisfy them and

they are always on the lookout for more.

We are quite aware that the reason why some catfish farming companies hardly make

good profits is their inability to sell off their catfish as at when due. Our sales and

marketing team will be recruited based on their vast experience in the catfish industry

and they will be trained on a regular basis so as to be well equipped to meet their

targets and the overall business goal of IB. Naf Integreted Farms.

Over and above, we have perfected our sale and marketing strategies first by

networking with agriculture merchants and businesses that rely on daily supply of fish

that are likely to become our customers. In summary, IB. Naf Integreted Farms will

adopt the following strategies in marketing our fish;

• Introduce our business by sending introductory letters alongside our brochure to

stakeholders in the agriculture industry, households, hotels and restaurants and

agriculture produce merchant etc.

 • Advertise our business in agriculture and food related magazines

• Attend related agriculture and food expos, seminars, and business fairs etc.

• Leverage on the internet to promote our business

• Engage in direct marketing •

Encourage the use of word of mouth marketing (referrals)

2.2. Specific Strategy

Marketing strategy is a process that can allow a business venture to concentrate its

limited resources on the greatest opportunities to increase sales and achieve a

sustainable competitive advantage. Our marketing strategy is centered on the key

concept that customer satisfaction is the main goal. Without customers we cannot

survive or exist. We intend to use market penetration as our marketing strategy. This

is because the sellers in this location import fish to sale, so since we would be opening

our own fish farm, we would have to take over the market by penetrating, marking the

wholesalers and individual buyers to buy from us until we break the chain of buying

imported fish. We intend to achieve this as we already have new customers and

market demand, lower prices (through flowing on breakeven for the first periods of

sale), aggressive promotion and distribution.

2.3. Opportunity or Problem in the Market to be Addressed

Fish remains the most acceptable and healthy source of protein for human

consumption, but this essential product is not readily available in our local content to

address the demand of our ever-increasing population, hence the continuous

importation of frozen fish to make up for the shortfall, but still the gap in demand and

supply keeps widening, giving rise to high cost of purchase and denial of fish in most
 homes because they cannot afford it. Rampant cases of goiter (sickness due to lack of

iodine) is been recorded in our hospitals in recent times due to the scarcity of the main

source of iodine, fish in most homes. This is a social and economic problem I felt

should not be left to the Government alone.

2.4. Our Pricing Strategy

Some of the factors that will help you sell your farm produce at the right price that

will guarantee that you make profits is dependent on your strategy while some of the

factors are beyond your control. For example, if the climatic condition is unfavorable

and if there is natural disaster in the location where you have your catfish farm, then it

will directly affect the prices of your fish.

Over and above, if you want to get the right pricing for your catfish, then you should

ensure that you choose a good location for the catfish farm, choose a good breed that

will guarantee bountiful harvest, cut the cost of running your catfish farm to the barest

minimum and of course try as much as possible to attract buyers to your catfish farm

as against taking your catfish to the market to source for buyers; with this, you would

have successfully eliminate the cost of transporting the goods to the market and other

logistics.

We are quite aware that one of the easiest means of penetrating the market and

acquiring loads of customers for all our catfishes is to sell them at competitive prices

hence we will do all we can to ensure that the prices of our fish and seafood are going

to be what other catfish farmers would look towards beating.

One thing is certain; the nature of catfish farming business makes it possible for

catfish farmers to place prices for their catfish based on their discretion without
 following the benchmark in the industry. The truth is that it is one of the means of

avoiding running into loss.

2.5 Payment Options

The payment policy adopted by IB. Naf Integreted Farms is all inclusive because we

are quite aware that different customers prefer different payment options as it suits

them but at the same time, we will ensure that we abide by the financial rules and

regulation of Nigeria.

Here are the payment options that IB. Naf Integreted Farms will make available to her

clients;

• Payment via bank transfer

• Payment with cash

• Payment via online bank transfer

• Payment via cheque

• Payment via mobile money

• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client

make payment for farm produces purchase without any stress on their part. Our bank

account numbers will be made available to our clients who may want to deposit cash

or make online transfer for catfish.

Product: Our products are in high demand in the market. There is great need and

demand for supply of catfish. We intend to grow our product to be very qualitative

and beat down all imported fish in the market.

Price: Our products price would be fair to those in our target markets, we have greater

advantage as buying from us would mean the buyer would not incur transportation

(carrying) cost as our farm house is close to all our target market. We have considered

our prices and have seen that selling from N2500 would give us profit while those

selling in the market by other sellers are sold for N2800 – N3000. Our Products are

price is almost on same benchmark with the prevailing market price.

Promotions: At the initial or first harvest, we intend to draw customer’s attention to

our farm and product by offering discount to customers on total price payable. This

discount would be given as below:

Above 30 pcs of fish 1.5% Discount

Above 90 pcs of fish 2% Discount

Above 150 pcs of fish 2.5 % Discount

500 and above 5% Discount

Distribution: Our product would be available at the farm sales room (Cool Room)

immediately after harvest where buyers can come to buy, wholesalers, retailer and

also individual buyers. We would make-arrangements for customers to contact the

sales representative to place order which would be delivered using the business car.
 CHAPTER THREE

OPERATIONAL PLAN

3.0. OPERATIONS PLAN

General approach to operations

3.1. Actual Production Process:

The fish cycle starts from getting the fingerlings from the market into the pond and

then feeding them with the various feeds until they are due for harvest and then taken

to the market for sales.

3.2. Why Company Is Cited:

The company is cited in Sabon-gari, due to a host of different factors which include

the growing presence of the civil servants which makes it a growing area with high

population and different people from different parts of the country. This gives us an

advantage in terms of the demand for our fish. Labor is another reason for choosing

this particular location. The Sabon-gari community is characterized by a population

where youths occupy the largest percentage of the population and most of these

youths are either student, drop outs or those who cannot further their education, these

makes it possible for the company to get labor at a cheaper rate compared to cost of

labor in Jalingo.

Another reason is the fact that with time the company intends to be hiring graduates

especially those from the agricultural department as workers in the company either on

interim basis or permanent basis. With its nearness to Sabon-gari, the company is

exposed to information about new variety of fish, or new improved feeds through

their research and development.

3.3. Business Location:

The farm is located in Sabon-gari, Taraba State. The site is generally flat with gentle

sloping which is quite suitable for the farm. This slop would ensure 100% drainage of

the pond water. We have a plot of land there which covers a vast land. The farm site is

also located near the community stream. The environment is cool and dense which

support fish production and there is an access road from the farm to the main dual

carriage way which would reduce transportation cost. Furthermore, harvested farm

products can easily be transported to our target markets for sale. Weekly sales are also

numerous within the community. The site is also very motor-able hence vehicles can

easily reach the site to evacuate fish farm products.

3.4. Facilities and Equipment:

The facilities and equipment needed in the catfish farming are as follows:

Electric Aeration, Hauling Trucks and Tanks, Generator, Mechanical Blower, Truck

Mounted/ Tractor – powered, harvesting bag net, Bamboo Screen Trap, Leveling tool,

Distilling tool, Seine, Boom Truck, Fish Basket, Tractors, Picking Truck, Fertilizer

Tools, Analysis Kit, Chilling Box, Cast Net, Nets and Trap, Fingerling Seine,

Fingerling Suspension Net, Gillnet Seine generator, Spawning tools, Fridge etc

The end product of fish farm is the grown up (Adult) fish for sale in the market.

Unlike poultry farming or other farms where you can have other bye products like the

animal dung, fish have no such bye products which you can also sale for profit.

Our revenue driver, would be the sale of the grown up or adult fish to the market. The

revenue to be raised here from this sale is high if we are able to work hard and ensure

our fish are alive, healthy and well feed and reach the market desired size. When we

buy a fingerling at the cost of N90, after the growth cycle of 6 months, the fish would
 be sold in the market for about N2500 – N3000, it’s a big revenue driver for us. So we

have to work hard so that this is achieved.

3.5. Start Up Cost

3.5.1a Table 2 Start up Cost

I Acquiring Land

a. We already have already acquired vast land which will be used for the farm.

b. Fencing of Farm N13,000,000

TOTAL N13,000,000

ii POND CONSTRUCTION:

a. For start up,

The firm will be constructing about Fourteen (14) very big concrete ponds, each to carry 4,000

fishes. b. Cost of Borehole Drilling (Water Source) N14,500,000

c. Cost of pump machine to pump water to Overhead Tank N6,000,000

d. Cost of Pond Treatment N3,600,000

TOTAL N24,100,000

iii Fingerlings

a. Cost of High breed Fingerlings (N30each X 56000 X 2) N3,360,000

b. Cost of Feeds N17,164,000

TOTAL N20,524,000
iv Feeding Equipment N1,120,000

v Harvesting Equipment N920,000

vi Equipment for Maintenance, Monitoring and Repair N2,100,000

vii Other Facilities N1,000,000

viii Labour (8 Staff) @ 32,400 each for 35 month N13,608,000

TOTAL START UP COST N18,748,000

Ix contruction of ponds N12,680,000

X Boreholes

N8,500,000

Total N21,180,000

3.6. Required Startup Capital

The required startup capital is one hundred and fifty million naira only,

(N150,000,000.00k) only.

3.7. Loan Needed

The loan needed is Seven Million, Three hundred and Four Thousand, Four hundred

Naira (N150,000,000.00k) only.

 CHAPTER FOUR

ORGANIZATIONAL AND MANAGEMENT PLAN.

4.0. Ownership of Business

IB. Naf integrated Farms is a sole proprietorship form of business, which will be

register with cooperate affairs commission. It is a basically one-person business with

a Medium start-up capital of about one hundred and fifty million naira. (150,000,000).

4.1. Profile of the Promoter.

The business will be manage by the chief promoter Nafiu Ibrahim, who has vas

knowledge of Aquaculture and also was involve in series of entrepreneurship skills

acquisitions.

4.2 Details of Employee.

Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

 Increases management’s effectiveness by recruiting, selecting, orienting, training,
coaching, counseling, and disciplining managers; communicating values, strategies,
and objectives; assigning accountabilities; planning, monitoring, and appraising job
results and developing incentives
 Responsible for fixing prices and signing business deals
 Responsible for providing direction for the business
 Creates, communicates, and implements the organization’s vision, mission, and
overall
Production Manager:
 Responsible for managing the daily activities in the farm
 Ensures that the facility is in tip top shape
 Any other duty as assigned by the CEO
Sales and Marketing Manager
 Manages external research and coordinate all the internal sources of information to
retain the organizations’ best customers and attract new ones
 Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  Identifies development opportunities; follows up on development leads and contacts
 Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
Information Technologist
 Manages the organizations website
 Handles ecommerce aspect of the business
 Responsible for installing and maintenance of computer software and hardware for
the organization
 Manages logistics and supply chain software, Web servers, e-commerce software and
POS (point of sale) systems
Accountant/Cashier:
 Responsible for preparing financial reports, budgets, and financial statements for the
organization
 Provides managements with financial analyses, development budgets, and accounting
reports
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting
Van Drivers:
 Distributes fish to vendors
 Delivers customer’s orders promptly
 Delivers correspondence for the company
 Runs errand for the organization
 Any other duty as assigned by the manager
Cleaners:
 Responsible for cleaning the production facility at all times
 Ensure that toiletries and supplies don’t run out of store Handle any other duty as
assigned by the production manager.
 CHAPTER FIVE
FINANCIAL PLAN
5.0 Table.3: SUMMARY OF FINANCIAL PLAN AND TOTAL PROJECT COST.

ITEM FUND APPLICATION TOTAL

CONTROL

LOAN EXISTING PROPOSED

1. Investment Expenses.

Land acquisition 12,500,000 - - 12,500,000

Building & signature 17,000,000 - - 17,000,000

Construction ponds 48,000,000 - - 48,000,000

Machinery & Equipment 7,500,000 - - 2,800,000

Bore holes 12,520,000 - 12,520,000

Sub-Total 92,820,000 - - 92,820,000

2. Operating Expenses. -

Purchase of fingerlings 3,600,000 - - 3,600,000

Materials and inputs 2,000,000 - - 200,000

Repair and maintenance 1,120,000 - - 1,120,000

Management 3,500,000 - - 3,500,000

Overheads 2,200,000 - - 2,200,000

Insurance 850,000 850,000

Appraisal fee 300,000 - 300,000

Solicitors & others 480,000 - 480,000

Bank charges/consultancy fee 1,000,000 - 1,000,000

Sub-Total 15,050,000 - 0 15,050,000

GRAND-TOTAL 107,870,000 - 0 107,870,000

5.1 Table 4: REVENUE PROJECTION.

Purchased Less 125 Matured fish Selling price Revenue realized

Fingerlings

Mature fish 30000 240 2,000 3,500 105,000,000

Fingerlings - 270,000 90 24,300,000

Total 109,300,000

 Mortality rate 2%

 Fish production per six month

 5.2. Table 5: CASH FLOW PROJECTION.

ITEM CYCLE 1 CYCLE 2 CYCLE 3 CYCLE 4 CYCLE 5 CYCLE 6

1. Inflow.

Rev. from sales of fish

103,480,000 103,480,000 103,480,000 1093,480,000 103,480,000 103,480,000
fin.
27,160,000 27,160,000 27,160,000 27,160,000 27,160,000 27,160,000
Mature fish
- - - - - -

Less cost of fish mash

Total 130,640,000 130,640,000 130,640,000 130,640,000 130,640,000 130,640,000

2. Fund provided

150,000,000 -
Loan funds
4,500,000 -
Applicant fund
4,500,000 4,500,000 4,500,000 4,500,000 4,500,000

Re-investment

Total 154,500,000 131,1400,000 131,1400,000 131,1400,000 131,1400,000 131,1400,000

Total cash flow 151,500,000 185,1400,000 209,500,000 234,000,000 238,500,000 243,000,000

3. Outflow Capital Cost

Building & structure

4,500,000 -
Machinery & equipment
3,000,000 -

Pick up van

5,400,000
Operating Expenses
3,500,000
Purchase of 2000 birds
2,600,000

Feeds
Medications 560,000 560,000 - 560,000 560,000

500,000 100,000 240,000 240,000 240,000 -

Repairs/Maintenance
- 350,000 350,000 350,000 -
Management /labour
100,000 100,000 200,000 200,000 200,000 -

Bill 20,000 20,000 80,000 80,000 80,000 -

130,000 - - - - -
Overheads.
150,000 150,000 150,000 150,000 150,000 -
Appraisal fee

Solicitor’s fee

Consultancy/Bank

charges

Insurance

Sub-Total 20,460,000 370,000 2,300,000 230,000 1,580,000 560,000

4. Debt Service

- 3,764,705.88 3,764,705.88 3,764,705.88 3,764,705.88 3,764,705.88

Principal Repayment
282,350 282,350 282,350 282,350 282,350 282,350
interest

Sub-total 282,350 4,047,055.88 4,047,055.88 4,047,055.88 4,047,055.88 4,047,055.88

Total Out Flow 8,253,000 5,620,000 6,171,500 3,850,250 4,050,000 1,850,000

Revenue realized is re-invested within the project cycle.

 5.6 Table 6: PROJECTED PROFIT AND LOSS

Items Year 1 Year 2 Year 3

1. Revenue

Revenue from mature fish 8,152,350 8,985,600 9,250,630

fingerlings 3,520,000 3,520,000 3,520,000

Gross Profit 112,572,000 113,505,600 113,770,630

2. Expenses

Management & labour 1,500,000 560,000 560,000

Feeds 3,500,000 940,000 940,000

Medication 980,000 450,000 450,000

Overheads 400,000 200,000 200,000

Appraised fee 100,000 - -

Solicitors fee 20,000 - -

Consultancy/ bank charges 130,000 130,000 130,000

Insurance 150,000 320,000 320,000

bills 30,000 70,000 70,000

Total expenses 6,810,000 2,670,000 2,670,000

Net profit before tax 75,762,000 110,835,600 110,835,600

Less 7% Tax 403,340 758,492 758,492

Net Profit After Tax 75,358,660 110,077,108 110,077,108

 CHAPTER SIX

BUSINESS RISK AND MITIGATING FACTORS

6.1 Challenges and Risk

Challenges in Catfish Farming: Fish farming is a very lucrative business and a profit

maker all year round. The 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. As any farm or

business venture, catfish farming involves risk. This risk if managed carefully could

be minimized, as they have the potential to wipe out your fish stock or make the farm

unprofitable. Some of these challenges and risks include:

Fish Loss:

This loss could be as a result of disease affecting your fingerlings in the pond. Some

of these diseases include; Enteric Septicemia, Columnaris, Aeromonas, Virions, Tape

Worms, round worms, flukes, etc.

Fish is very sensitive to manage and a slight mistake could result to degenerated

growth of your fish or even death which may cause massive revenue loss.

Water Contamination: Spillage into the ponds could cut off oxygen flow to the

fingerlings or fishes and this would kill the fishes.

There is no byproduct in fishery unlike poultry where even the drop can be harvested

and sold to other farmers and make extra profit. In fishery, all you get is the flesh.
Quality of Fingerlings:

Poor quality fingerlings may die or even fail to grow and this would result in a loss of

investment.

Setting up fish farm is capital intensive, much more than that of poultry and snail

farming. Setting up fish farm requires more careful planning and much capital input.

Failure of water supply:

Breakage of water supply is potentially dangerous to the fish and if such occurs, there

are great tendencies of the fishes dying.

❖ Fish farming is capital intensive.

❖ It is labor intensive

❖ Cannibalism and high mortality rate of fingerlings

❖ Pest and predators

❖ Market instability

❖ Loss during harvest.

6.2. SWOT Analysis

IB. Naf Integrated Farms do not intend to launch out with trial and error hence the

need to conduct a proper SWOT analysis.

We know that if we get it right from the onset, we would have succeeded in creating

the foundation that will help us build a standard catfish farming company that will
 favorably compete with leading players in the Fish and Seafood Aquaculture industry

in the North Central and in the rest part of Nigeria.

A SWOT analysis was conducted for IB. Naf integrated Farms. Here is a summary

from the result of the SWOT analysis;

• Strength:

Our strength as catfish farmer is the fact that we have healthy relationships with loads

of major players (agriculture merchants) in the industry; both suppliers of fish, feeds

and medications and buyers of catfish within and outside Taraba state.

We acquire some of the latest fish farming tools and equipment that will help us raise

and produce catfish in commercial quantities with less stress. Aside from our

relationship (network) and equipment, we can confidently boast that we have some

the most experienced hands in our payroll.

• Weakness:

Our weakness could be that we are a new catfish farmer, and perhaps it might take us

sometime to attract big time customers in the industry. We are aware of this and from

our projection will overcome this weakness with time and turn it to a major advantage

for the business.

• Opportunities:

The opportunities that are available to us as a standard and world – class catfish

farmers cannot be quantified, we know that there are lots of households, and

businesses such as hotels and fast food restaurants that can’t do without daily supply

of catfish. We are well positioned to take advantage of this opportunity

• Threat:
 Some of the threats and challenges that we are likely going to face when we start our

own catfish farming are global economic downturn that can impact negatively on

household spending, bad weather cum natural disasters (draught, epidemics),

unfavorable government policies and the arrival of a competitor within same location.

There is hardly anything you can do as regards this threats and challenges other than

to be optimistic that things will continue to work for your good.

6.3. Conclusion

Like several other agribusinesses that have great potentials for both scale and profitability,

starting a fish farming in Nigeria or across Africa is a great agribusiness to start up if

executed at the right scale.

We also know that fish farming in Nigeria is one of the most profitable agribusiness to

venture into, and as such, investing in the agribusiness is a smart decision to make, especially

with its local demand and very high export potentials