V.

TECHNICAL FEASIBILITY

A. Production Process

I. Choosing a suitable site for cage culture

Criteria for selecting a suitable site for cage culture of sea bass include:

a. Protection from strong wind and waves The cage culture site should

preferably be located in protected bays, lagoons, sheltered coves or inland sea.

b. Water circulation The site should preferably be located in an area where

influence of tidal fluctuation is not pronounced. Avoid installing cages where the

current velocity is strong.

c. Salinity Suitable site for sea bass culture should have a salinity ranging from

1330 ppt.

d. Bio fouling The site should be far from the area where biofoulers abound.

e. Water quality The site should be far from the sources of domestic, industrial

and agricultural pollution and other environmental hazards.

II. Designing the fish cage

 Maseabass! will use floating cages in raising sea bass. The net cages will be

attached to Galvanized Iron pipes and will be kept afloat by floating materials such as

plastic drums or bamboos. The business will use two cages so that in case one gets

destroyed, the researchers could make use of the other cage. The sizes for the floating

cages to be used are 125m3 (5 10 2.5m). A platform will also be installed using

bamboos.

III. Stocking the fish cages

Prior to stocking sea bass fingerlings in

cages, fish would be acclimatized to the ambient

temperature and salinity prevailing in the cages in

order to avoid thermal shock within the fingerlings.

The fish will be graded into several size groups

and stocked in separate cages and the stocking

time will be done in the early mornings or late in

the evening when the temperature is cooler.

Stocking density in cages is usually between 4050 fish per cubic meter. Two to

three months thereafter, when the fish have attained a weight between 150200 g, the

stocking density would be reduced to 1020 fish per cubic meter. There will be an extra

cage as these is necessary for transfer of stock and to effect immediate change of net in

the previously stocked cage once it has become clogged with fouling organisms.

Changing cages allows for grading and controlling stock density.

IV. Culturing the sea bass

Culturing sea bass has two phases; the nursery and the grow-out phase the

nursery phase will be conducted in a net rectangular cage with a measurement of 125
 cubic meters (5 x 10 x 2.5). The fish cage will be made of synthetic netting attached to

galvanized iron poles. It will be kept afloat by large plastic drums. Nursery cage

management

Sea bass fry (12.5 cm in size) will be stocked in

the nursery cage at the rate of 80100 per square meter.

The net cages will be checked daily to ensure that the

cages are not damaged by animals such as crabs or

clogged with foul organisms. Cleaning cages will be done

every other day by brushing the net. This will allow water

to pass through the cages naturally.

The grow-out phase involves the rearing of the sea bass from juvenile to

marketable size. Marketable size requirement of sea bass vary from country to

country. The normally accepted marketable size of sea bass in the Philippines is

between 300 400 g. The culture period of sea bass in grow-out phase is within 3 4

months.

V. Feeding the sea bass

Sea bass will be fed with trash fish or molmol tilapia. When sea bass are only

1.5g 50g, the trash fish will be chopped into tiny pieces and fish bones will be taken

off. The young sea bass will be fed five times a day while the adult sea bass will only

be fed twice a day, which will be in the morning and in the afternoon. The table below

shows how the sea bass will be fed according to its body weight. This table was

provided by BFAR.

AVERAGE BODY WEIGHT FEEDING RATE FEEDING

(grams) (% of body weight) FREQUENCY

1.5 - 20 g 10 8 5x
 21 50 g 87 5x
51 100 g 76 2x
101 150 g 65 2x
151 250 g 54 2x
251 350 g 43 2x
351 450 g 31 2x
451 550 g 31 2x
551 -650 g 31 2x
651 750 g 31 2x

VI. Reaping the sea bass

When the sea bass reach their marketable size (300g 400g), the restaurants

that are interested and are serving sea bass will be contacted and notified that the

sea bass are ready for harvest. This way, the restaurants will acquire their supply of

sea bass as fresh as possible.

The business will also provide a value added

product known as the sea bass fillet. In turning fresh

sea bass into a fillet, the proponents of this business

will first make sure if the sea bass weighs 200 grams

or more and if so, the fishes will be sent to BFAR for

deboning. The Bureau of Fisheries and Aquatic Resources has a deboning facility and

they provide deboning services for only Php 2.50 per fish. After turning the fish into fillet,

the fish will be placed in a plastic container. The finished product will then be ready for

sale in the market or to restaurants.

 B. Production Timetable

Approximate Number of Sea Bass Produced (Pieces)

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
YEAR 1 0 0 0 0 0 0 186 186 186 186 186 215
YEAR 2 203 203 203 203 203 195 195 195 195 195 195 226
YEAR 3 213 213 213 213 213 205 205 205 205 205 205 237
YEAR 4 224 224 224 224 224 215 215 215 215 215 215 249
YEAR 5 235 235 235 235 235 226 226 226 226 226 226 261
The production timetable shows the number of sea bass that will be produced

monthly with the consideration of the sea bass mortality rate of 40%. On the month of

January to June, no sea bass will be available because the business will be in the

process of culturing the sea bass, which takes a maximum of six months to reach its

marketable size. Production starts at July with 186 pieces of sea bass and production

continues to increase to support the growing demand of sea bass every year because of

its developing popularity. December also has a large production out of all the other

months in a year because it is one of the peak seasons of sea bass and it is also when

people are more likely to spend money because of the holidays and the holiday bonus.

Number of Sea Bass Fingerlings Stocked (Pieces)

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
YEAR 1 310 310 310 310 310 358 339 339 339 339 339 326
YEAR 2 326 326 326 326 326 376 356 356 356 356 356 342
YEAR 3 342 342 342 342 342 395 373 373 373 373 373 359
YEAR 4 359 359 359 359 359 415 392 392 392 392 392 377
YEAR 5 377 377 377 377 377 436 412 412 412 412 412 396
The number of sea bass fingerlings stocked in the sea cage increases because

as stated above, stocking density increases to support the sea bass growing demand

due to popularity and peak seasons. Shown above is a table of the number of sea bass

fingerlings that will be stocked in the sea cage every month.

 Timeline of Activities

YEAR MONTH ACTIVITY

Make a Business Plan
October Register the Business
2016

Purchase Equipment Needed (Boat)

Purchase Equipment Needed (Cage)
November
Contract Workers
Contract Suppliers
December
Purchase Raw Materials
Purchase 310 Sea Bass Fingerlings
January
Purchase 47 kilograms of trash fish

Purchase 310 Sea Bass Fingerlings

February
Purchase 130 kilograms of trash fish

Purchase 310 Sea Bass Fingerlings

March
Purchase 240 kilograms of trash fish

Purchase 310 Sea Bass Fingerlings

April
Purchase 326 kilograms of trash fish

Purchase 310 Sea Bass Fingerlings

May
Purchase 432 kilograms of trash fish

Purchase 358 Sea Bass Fingerlings

June
2017

Purchase 519 kilograms of trash fish

Purchase 339 Sea Bass Fingerlings

July
Purchase 548 kilograms of trash fish

Purchase 339 Sea Bass Fingerlings

August
Purchase 557 kilograms of trash fish

Purchase 339 Sea Bass Fingerlings

September
Purchase 548 kilograms of trash fish

Purchase 339 Sea Bass Fingerlings

October
Purchase 575 kilograms of trash fish

Purchase 339 Sea Bass Fingerlings

November
Purchase 565 kilograms of trash fish

Purchase 326 Sea Bass Fingerlings

December
Purchase 576 kilograms of trash fish
 C. Gantt Chart of Activities

ACTIVITIES NUMBER OF WEEKS

1 2 3 4 5 6 7 8 9 10 11 12
Planning Stage
Licensing and Registration
Purchasing of Equipment
Contracting Suppliers and Workers
Purchasing Raw Materials
Start of Operation

The business will take eleven (11) weeks of preparation before the start of its operation.

D. Flowchart of Activities

Figure 1. Revenue Cycle

\
 The diagram above illustrates the companys revenue cycle. The request for

sea bass / sea bass fillet by a customer which will be in the form of customer order is

the starting point for the entire cycle. Before goods are shipped, credit approval must

be done first for sales on account. Approval in the sales order often serves as the

approval to ship the goods. After shipping the goods, the customer will be billed for

payment.

Expenditure Cycle
o Figure 2. Purchasing Cycle
 o Figure 3. Cash Disbursement Cycle

The diagram in Figure 2 and 3 shows the companys purchasing and cash

disbursement cycle. The purchasing cycle typically begins with processing purchasing

orders through purchase requisition which is the request for goods/materials to be

acquired and the authorized acquisition in the form of purchase order to be submitted to

suppliers. The receiving of goods/ materials with the receiving report will be examined by

authorized person. This will represent the recognition and recording of the transaction in

the book. The acquisition will be paid in cash or check.

E. Layout

The image below is how the fish cage would look like if viewed from the top and

the side.
 Here, the image

shows how far the shore is

from the sea cage.

 F. Initial Investment

As stated in the previous chapters, the initial investment of each partner for the

aquaculture of sea bass was estimated to be Php50,000; a total of Php350,000. Presented

below is a table of how the initial investment was derived.

COST OF TWO UNITS OF GALNVANIZED IRON FISH CAGE

(Measurement: 125 cubic meters/unit)
ITEM DESCRIPTION QUANTITY PRICE TOTAL SOURCES
(Php) (Php)
Dual domain net
2mm mesh size

2 rolls 2,500.00 5,000.00

Polyethylene net
# 17, knotted

2 rolls 6,500.00 13,000.00

Polyethylene
rope # 20 @
100m
2 rolls 730.00 1,460.00

Polyethylene - H D Industrial Supply

rope # 10 @ - Dasmarinas Street, Metro
200m Manila
- December 3, 2016
2 rolls 380.00 760.00

Polyethylene
rope # 8 @ 200m

2 rolls 290.00 580.00

Monoline (Nylon)
# 220

6 kgs 300.00 1,800.00

 Tying twine
210/15
6 rolls 45.00 270.00

Netting needle

20 pcs 10.00 200.00

Galvanized iron
clamps

56 pcs 90.00 5,040.00

- HPS Metal Fabrication
- #162 Old Samson Rd. Brgy.
Galvanized iron
Apolonio Samson, Balintawak,
pipe
Quezon City
26 pcs 700.00 18,200.00 - December 3, 2016

Plastic drums
23 x 34.5 - Mecxes Sacks & General
Merchandising
24 pcs 900.00 21,600.00 - #3B Morcilla St., Pateros, Metro
Manila
- December 3, 2016
Bamboo 35ft

8 pcs 350.00 2,800.00

- Alfredos Bamboo
- Mabini St., Binmaley,
Bamboo 15 ft Pangasinan
- January 19, 2017
8 pcs 200.00 1,600.00

TOTAL COST OF MATERIALS Php 67,910.00

Labor cost for 60% of - Ednas Welding and Machine
construction and material Shop
installation of 2 cages cost 33,955.00 - Anonas E St, Urdaneta City,
cage 2428 Pangasinan
- December 4, 2016
TOTAL COST OF CAGE Php 106, 265.00

The net will have a useful life of 2 years and the galvanized iron frame will a

useful life of 5 years.

 PROPERTY, PLANT AND EQUIPMENT
ITEM DESCRIPTION QUANTITY PRICE TOTAL SOURCES
(Php) (Php)
- Lot Caballero
Boat - Pugaro, Dagupan City,
Pangasinan
1 unit 9,500.00 9,500 - January 19, 2017

TOTAL COST OF PROPERTY PLANT AND Php9, 500.00

EQUIPMENT

The boat will be depreciated over 7 years.

OPERATING AND PRODUCTION COST

ITEM DESCRIPTION QUANTITY PRICE TOTAL SOURCES
(Php) (Php)
- Bureau of Fisheries and
Sea Bass Aquatic Resources
Fingerlings 1 - Bonuan Binloc, Dagupan City,
in. Pangasinan
- December 3, 2016
2,000 pcs 4.00 8,000.00

Trash fish
- Malimgas Public Market
- Galvan Street, Downtown
1,700kg 30 51,000.00 District, Dagupan City
- January 19, 2017

Polyethylene
Bags - 60x60cm

5,000 pcs 4.50 22,500.00

- Letica Wholesale
- Rizal Avenue Manila, Metro
Plastic Manila
Container - January 19, 2017

2,000 pcs 4.00 8,000.00

 Ice Box 30L
- CSI City Mall
5 boxes 1,200.00 6,000.00 - Lucao District, Dagupan City
- January 19, 2017

Oxygen Tank
50 lbs - Galatian Medical Supplies
- Arellano Street, Dagupan City,
2 tanks 3,000.00 6,000.00 Pangasinan
- January 19, 2017

Stickers
Medium - iPrint Sign
- Gomez St., Dagupan City
200 stickers 500.00 1,000.00 - January 19, 2017

TOTAL OPERATING AND PRODUCTION COST Php102, 500.00

BUSINESS REGISTRATION AND APPLICATION COST

ASSOCIATED
ITEM/ ITEM DESCRIPTION AGENCY
COST (Php)
Name Verification / Reservation Fee Securities
40.00
Articles of Partnership (1/5 of 1% of the Partnerships Exchange 1,010.00
Capital but not less than Php1,000 plus 1% of the Commission
amount as legal research fee) / SEC Registration
Fee
Notarize Articles of Partnership Notary 100.00
Community Tax Certificate City Treasurers 100.00
Office
Barangay Clearance Barangay 20.00
Mayors Permit City Hall 50.00
Business Permit
o Business Tax (25% of 1% of capital) 75.00
o Sanitary Inspection Fee Business Permits 150.00
o Signboard Fee and Licensing 50.00
o Business Plate Office 300.00
o Zoning Clearance 545.00
o Garbage Fee 1,300.00
Certificate of Registration 100.00
Documentary Stamp Tax Bureau of Internal 15.00
Authority to Print Receipts and Invoices Revenue 3,500.00
 Books of Accounts Bookstore 400.00
Endorsement and Recommendation by MFARMC MFARMC 350.00
Application Fee Office of the 140.00
Municipal
Treasurer
Permit Fee (Php 1.00/sq.meter) DENR 50.00
Operation of Fish Cage City Government 1,000.00
TOTAL COST OF BUSINESS REGISTRATION AND
9, 295.00
APPLICATION
The total of all costs would amount to approximately Php228,000.00. Php122,000.00

would serve as a contingency fund of the business, hence a total of PhP350,000.00. The seven

general partners of the business will each invest Php50,000.00 to start the business with a total

capital of Php350,000.00.

G. Suppliers Information

SUPPLIERS NAME LOCATION AND CONTACT PRODUCTS/SERVICES

NUMBER OFFERED
Dual domain net
Polyethylene net and rope
o Dasmarinas Street, Metro Manila
H D Industrial Supply Monoline (nylon)
o 09067534399
Tying twine
Netting needle
Dual domain net
Polyethylene net and rope
Nepons General o Nueva St., Dagupan City
Monoline (nylon)
Merchandise o (075) 522 7633
Netting needle
Plastic drums
Dual domain net
o AB Fernandez W Ave, Dagupan, Polyethylene net and rope
Abbys General Pangasinan Monoline (nylon)
Merchandise o 09156407231 Netting needle
Plastic drums
 o #162 Old Samson Rd. Brgy.
Apolonio Samson, Balintawak, Galvanized iron clamps
HPS Metal Fabrication
Quezon City Galvanized iron pipe
o 09098331417
o Balintawak, Quezon City Galvanized iron clamps
Wanlinda Metal Wires
o 09126321163 Galvanized iron pipe
o #3B Morcilla St., Pateros, Metro
Mecxes Sacks and
Manila Plastic drums
General Merchandising
o 09077319942

Alfredos Bamboos o Mabini St., Binmaley, Pangsinan Bamboos

o Anonas E St, Urdaneta City,

Ednas Welding and
2428 Pangasinan Welding services
Machine Shop
o 09065284409
o Pugaro, Dagupan City Boat
Lot Caballero o 09070318783 Boat manufacturing services
o 09266904762
o Bonuan Binloc, Dagupan City,
Bureau of Fisheries and
Pangasinan Sea bass fingerlings
Aquatic Resources
o 09993918377
Trash fish
Mol-mol tilapia
o Galvan Street, Downtown District,
Malimgas Public Market Polyethylene bags
Dagupan City
Plastic container
Ice Boxes
o Rizal Avenue Manila, Metro Polyethylene bags
Letica Wholesale
Manila Plastic container
o 09565807620
o Lucao District, Dagupan City Ice boxes
CSI City Mall
Plastic container
o Rizal Avenue Manila, Metro Medical supplies
PhilMed Manila Oxygen Tanks
o 09334369965
 o Arellano Street, Dagupan City, Medical supplies
Galatian Medical
Pangasinan Oxygen Tanks
Supplies
Printing
o Gomez St., Dagupan City
iPrint Sign Signage
o 09535265463
Stickers
o Perez Boulevard, Dagupan City, Printing
Roshans Digital Prints
Pangasinan Signage
and Supplies
o 09228767426 Stickers