EEL (Kuroko) GROW-OUT PRODUCTION IN TANK-BASED CULTURE SYSTEM

I. INTRODUCTION

The Philippines is one of the important sources of Anguillids. High quantity of A.

bicolor, A. luzonensis, A. marmorata and the important and listed as threatened the A. japonica.
Owing to its export potential and high prized delicacy, eel has been exposed to exploitation and
marginal; fisherfolk’s dependence on the species has been overwhelming over the past six years.
An estimated 2,000 people in the Philippines benefit directly or indirectly from employment in
the eel industry. Eel gathering and farming provides self-employment for farmers and their
family members as well as outside employment for caretakers, laborers, and harvesters. Eel
grow-out operations have backward linkages (hatchery/nurseries and suppliers of feeds and other
inputs) and forward linkages (harvesting, postharvest handling, processing, and marketing), all of
which also absorb labor. Such indirect employment could be substantial, but is difficult to
quantify in the absence of accurate data.
The importance of this resource to Japanese, Chinese and Koreans to their culture makes
eel as one of the exploited fishery resources. Its popularity as a medicine makes this resource a
wide demand in the world market. It is a dollar earner of the country. It is imperative though to
improve farm productivity to bring down production cost and make the most of the benefits it
can give to the grower.
However, number of grow-out production of Eel in the Philippines is lower as compared
to the production of some valued species, particularly in the region (Cagayan Valley). Therefore,
this project generally aims to produce Kuroko eel using tank-based culture system.

II. TECHNICAL FEASIBILITY

1. Site Selection
For intensive tank-based eel aquaculture, site selection criteria are less restrictive,
although a source of good water quality is still essential. Choosing a potential site for tank
culture is generally easier because less land area is required and the volumes of intake water are
lower. Factors such as topography, soil quality and climate are not so much of an issue. A basic
intensive re-circulation system should consist of a number of tanks (usually 1-13 tanks), either
independent or in groups, filtered by mechanical and bio-filters, which are used to strip
nitrogenous waste and nutrients from the water. Re-circulation systems can also incorporate a
number of other units including UV and ozonation systems to disinfect water and protein
skimmers to remove protein based wastes. The entire system should be contained within a
vermin-proof, climate-controlled housing. Specialized technical advice should be sought to
determine the best set-up.

2. Establishment of Eel grow-out facility

The eel grow-out facility will be composed of 10 tanks for eel grow-out production from
glass eel to Kuroko size (16cm). Each tank will be constructed with an area of about 2.5 m 3
capacity (width: 1 m; length: 5 m; height: 0.5 m). Roofing and shading will be installed to
control sunlight exposure of eel (to maintain standard water temperature as required). The eel
grow-out facility will be equipped with water filtration system (with UC Water Sterilizer).

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3. Purchase of glass eel
Glass Eels will be purchased from the local consolidator and will be then received and
accounted at the receiving area for proper recording and checking of status of the stocks.
Usually, glass eels range ranges from 5,000 pcs to 6,000 pcs per kilogram.

4. Stocking
The plastic transport bags will be allowed to float in the holding tank in order to reduce
the temperature difference between the temperature water (usually cooled down to about 20⁰C)
and holding tank water (ambient water). The plastic bags will be then opened and the temperature
will be measured. Prior to the stocking, the glass eel will be immersed in freshwater containing
salt at 35 ppt (equivalent to the full strength seawater) with vigorous aeration. The duration of
immersion is from 30 seconds to 1 minute. These glass eel will be stocked in nursery tanks for
rearing. The rectangular twin-tanks will serve as the production area of elvers to kuroko (16 cm
length. The glass eels will be stocked at 5 pcs/L (1kg glass eel per cubic meter of water).
From time to time, regular water quality monitoring will be done together with disease
monitoring in order to ensure a higher survival of stocks.

Figure 1. Flow diagram of Eel production

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5. Feeds and feeding
The ground squid will be added into commercial feeds for the first month culture.
Sometimes brine shrimp is used in conjunction with worms and minced fish to wean glass eels
onto artificial foods. Glass eel will be fed thrice a day at 40% of their body weight (for first
month feeding). Water will be replaced 1 to 2 hours after feeding, with water exchange volume
ranging from 50% up to almost complete water replacement.
The glass eel will be fed with ground squid for 30 days (first month) prior to the
preparation for grow-out production up to kuroko size for market. The ideal temperature range
for eel to remain healthy and to convert feed efficiently is 23-28°C. Temperatures above optimal
result in reduced metabolism and growth rates, stress and sometimes death.
Glass eel are nocturnal feeders, so the feeding spot is usually covered with boards or
other suitable materials, to make it as dark as possible. Feed conversion ratio (FCR) is expected
that they will vary with species, size, system design, food type, water temperature and quality.
The recommended protein level in practical diets for elvers is 50-60%, and 40-45% for sub-
adults.

6. Harvesting System
Harvesting will be conducted after 6 months of culture operation. Eel culture generally
involves partial harvesting, grading and stocking at regular time intervals. Due to the intense
nature of many culture systems, harvesting techniques are usually relatively simple, though care
is needed to minimize the stress induced by harvesting. Normally, feeding is suspended the day
before harvesting. When the eels reach a marketable size, harvesting is carried out with a scoop
net in the feeding area, when the eels congregate at the usual feeding time. During harvesting,
oxygen levels are kept high by admitting freshwater into the culture system or by direct
oxygenation.

III. FINANCIAL FEASIBILITY

Tank area 1m x 5m x 0.5 m = 2.5 cu. meters

Number of tanks 10 tanks
Culture period 6 months
Stocking density 1kg (5,000pcs) per cu. meter
Percent recovery 75%
Total harvested fish 56,250 pcs
Average weight of fish 5-10 grams/pc
Average selling price ₱30.00/pc

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Table 1. Capital investment
Particulars Unit Quantity Unit cost Total cost

Concrete flooring with drainage system set 1 50,000.00 50,000.00

Roofing/shading unit 1 100,000.00 100,000.00
Water filtration system unit 1 70,000.00 70,000.00
Air Blower unit 1 10,000.00 10,000.00
Total 230,000.00

Table 2. Operating expenses

Particulars Unit Quantity Unit cost Total cost
Glass eel kg 10 4,000.00 40,000.00
Feed supplies bag 200 2,400.00 480,000.00
Squid (for first month feeding) kg 50 180.00 9,000.00
Electric bill month 6 5,000.00 30,000.00
Caretaker @2 personnel month 6 5,000.00 30,000.00
Sub-total 589,000.00
10% Contingencies (including travel and representation allowance 58,900.00
Caretakers incentives 3% gross sales 101,250.00
Harvesting expenses 2% gross sales 33,750.00
Repair and maintenance 2% gross sales 33,750.00
Sub-total 227,650.00

Grand total 816,650.00

Table 3. Depreciation cost

Economic
Equipment Cost Annual depreciation
life
Concrete flooring with drainage system 100,000.00 10 years 10,000.00
Rectangular tank 100,000.00 10 years 10,000.00
Roofing/shading 100,000.00 5 years 20,000.00
Water filtration system 70,000.00 5 years 14,000.00
Air Blower 10,000.00 3 years 3,333.33
Total 57,333.33

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PROJECTED HARVEST

Gross sale (2 cycles per year)

= Total harvested fish x average selling price
= 56,250 pcs. x ₱30.00/pc
= ₱1,687,500.00 x 2 cycles per year
= ₱3,375,000.00

Total project cost per year

= Capital investment + Operating capital + Depreciation cost / year
= ₱330,000.00 + ₱816,650.00+ ₱57,333.33
= ₱1,203,983.33 x 2 cycles
= ₱2,407,966.67

Net income before tax

= Gross sale - (Operating capital + Depreciation cost)
= ₱3,375,000.00 - [(₱816,650.00 + ₱57,333.33) x 2 cycles]
= ₱3,375,000.00 - ₱1,747,966.67
= ₱1,627,033.33

Net income after tax

= Net income before tax - 10% provision tax
= ₱1,627,033.33 - ₱162,703.33
= ₱1,464,330.00

Return on investment
= Net income after tax x 100%
Total Project Cost
= ₱1,464,330.00 x 100%
₱2,407,966.67
= 60.81%

Return on operating expenses

= Net income after tax x 100%
Operating capital + Depreciation cost
= ₱1,464,330.00 x 100%
₱816,650.00 + ₱57,333.33
₱1,464,330.00 x 100%
₱873,983.33
= 167.55%

Payback period
= Total project cost
Net income after tax
= ₱2,407,966.67
₱1,464,330.00
= 1.64
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