Business Plan LLP Tilapia Cage Fish Farm

LLP TILAPIA CAGE FISH FARM Business Plan Corporate
Document
1.0 PURPOSE OF THE DOCUMENT
1.1 Overview
The objective of this Business Plan for LAKE LAND PROPERTIES is primarily
to inform potential project financiers and facilitators about the project
development concept and investment plan for the proposed aquaculture
project. The thrust of the document is essentially to articulate to the
prospective project funder on how resources will be used to set up the
project infrastructure, manage the enterprise, use the financial proceeds to
support its intended beneficiaries (the school and the students), and
eventually sustain and grow it in the medium- to long-term. The project
Business Plan may thus form the bases of an important investment-support
decision and in order to serve this objective; the document/plan covers
various aspects of project concept development, start-up, production, and
finance and business management.
1.2 Purpose of Request
LAKE LAND PROPERTIES projects an annual production output of 120

metric tonnes of cage farmed Tilapia fish per annum over a three (3) year
start-up and planning horizon. The market targeted average size will be
500gm tilapia, plus 100,000 all male fish fry out-put annually. The production
plan will employ two strategies: a) establishment of a hatchery to produce
fish fry seeds in the first year and a surplus for sale satring in the second
year; and b) stocking up of Tilapia fish fry seed in cages and raising them up
to market size of 500 gms. The amount of UG Shs 600 million (US
$240,000) being requested as will allow us to do site clearing and pond
construction, put up building infrastructure at site, purchase the necessary
fish farm tools and equipment, pay for the start-up operating input costs
such as fish feeds and hormones and broodstock and other operating
expenses, and help us to defray a range of other supplementary investment
costs like pre-operating costs and working capital for a 1 year operating
period.
1.3 Anticipated Impact of the Proposed Activity on the Enterprise

and Larger Community
The impact of the proposed activity will be to contribute to food security, and
create and sustain employment opportunities. In addition, the LAKE LAND
PROPERTIES Tilapia cage fish farm will increase much needed protein for
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consumption by the communities living and working around Lake Kachira.
Critically, a portion of the profit generated from the commercial farm will
support and sustain the LAKE LAND PROPERTIES enterprise development
programs, pay workers’ salaries and defray Tilapia fish farm running costs
thus improving the internal cash flow position and boosting commercial
returns, profitability and sustainable growth of the enterprise.
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2.0 EXECUTIVE SUMMARY
2.1 Project Description
LAKE LAND PROPERTIES (LLP) is a company registered in 2007 with

headquarters in Entebbe town. LLP has 30 acres of land on the shores of
Lake Kachira approximately 250 km from Kampala astride two districts of
Rakai and Kiruhura.
It intends to establish a commercial Tilapia Cage Farm and a Fish Fry

Hatchery on this land and lake after having acquired a Permit/License from
Directorate of Fisheries Resources, Ministry of Agriculture, Animal
Industry and Fisheries, Entebbe.
According to the Fisheries Sector Strategic Plan 2007, National

Fisheries Policy and EU Report June 2011, there is a missing gap between
supply and demand of fish fry to farmers and table fish to customers
respectively.
The private sector has been always encouraged to take this as an

opportunity to do business by establishing commercial fish farms to fill this
gap. It is upon this background that LLP intends to establish the said farm.
The source of funding is its Equity worth UGX 109,800,000 company equity
funding and a loan. LLP therefore is seeking to obtain funding to the tune of
UGX 600,000,000/= (Six Hundred Million Shillings) with an inclusion of
10% contingency to cater for inflation over a 4 year period. This amount is
projected to be secured through NAADS program or any other support
program through MAAIF. The company projects the loan to be on a bank term
of annual interest rate of 15% with a grace period of 8 to 12 months as
sufficient lead time for farm set-up.
The farm’s annual production capacity is expected to be 120 metric tons of

table size cage fish and 100,000 all male fish fry from the hatchery within a 3
year planning horizon. This production level is expected to generate UGX
136,650,000/=; UGX 261,847,000/=; UGX 416, 778,420/=; UGX
591,516,893/= in pre-tax profits annually during the second, third, fourth
and fifth successive years of project operation respectively.
The farm projects to repay the loan in 60 months by paying UGX

150,000,000/= annual installments after the grace period. The grace period
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is needed for organizing, setting-up the farm infrastructure and production
start-up. Half of the retained earnings will be utilized for streamlining
production and human resource requirements, and for capital equipment on
the farm after the 3 year planning and start-up period.
A competent team of managers and technical personnel will be hired to set-

up and manage the farm to meet its planned production targets and
commercial standard.
2.2 Farm Management
The LAKE LAND PROPERTIES fish farming project will be set up as a

commercial enterprise with the primary purpose of enhancing the resilience
of the enterprise as an aquaculture-based SME given the various global
changes and challenges; exploit market opportunities along the fish product
value-chain for specific proven fish farming technologies; and develop a
profitably sustainable commercial enterprise. To ensure that the project gets
on the right track to achieve its commercial and developmental objectives,
the management will have to undertake some fundamental and
organizational and operational decisions; key among these are:
 To select the Nile Tilapia for commercial production in the fish cages
and ponds on account of their fast-growing demand and huge market
opportunity on the domestic and international markets.
 To target a combined commercial production of not less than 240,000
whole fish (120 metric tonnes) of cultured Tilapia fish per annum out of
the LAKE LAND PROPERTIES fish ponds and cages on Lake Kachira.
 To start off by marketing and selling on the local market (which still has
a very large scope for expansion) before reaching out to the
international fish export market after having acquired the relevant
background experience and expertise in aquaculture production and
marketing
 To finance the operation using a mix of equity (land assets) and
financial institution financing to kick-start and roll the project forward.
Types of fish products that can be derived from the LAKE LAND
PROPERTIES aquaculture project
 Fingerlings, fry, and live eggs

 Live or fresh food-fish (specifically tilapia)
 Processed fish: smoked, filleted, de-headed, sun-dried
 Eggs
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With its good quality growth characteristics, easy production of fish seed and
good taste the Nile tilapia (Oreochromis niloticus) has been the most farmed
species to date in Uganda. It is popular among rural farmers and there is a
growing regional market for it.
2.3 Enterprise Management
LAKE LAND PROPERTIES will benefit from an experienced entrepreneurial-

based management team. Mr. XXXX, is responsible for strategic corporate
and financial planning. Mr. YYYY, a long-term residents of Uganda with a firm
knowledge of the local economy and experience in agricultural management
and project infrastructure development, will run the day-to-day operations.
Mr. ZZZZ, a Ugandan entrepreneur, investor and business consultant, brings
to the table years of domestic fish trading expertise and industry
connections. Ownership interest is allocated at 40% to XXXX, 30% to YYYY
and 30% to ZZZZ.
2.4 Partnerships
LAKE LAND PROPERTIES will strive to form mutually beneficial

partnerships with local fish farmers and fish exporters/processors. Such a
partnership would greatly benefit the collect body of fish farmers in Uganda
to share knowledge, experiences and standards on fish faring as a growing
industry in Uganda, besides giving them the power to collectively bargain for
better prices and payment terms in the local market.
2.5 Production Summary
Production from fish farming in Uganda has grown from 285 metric tonnes in
1999 to over 50,000 tonnes by the end of 2007. “The increase in tilapia and
African cat fish production has been due to the 14,000 subsistence fish
farmers and 100 emerging commercial farmers.
Production ranges between 1,500 kg per hectare annually for subsistence

farmers to 15,000 kg per hectare for the emerging commercial fish farmers.
2.6 Market Summary
Uganda produces up to 15,000 tonnes of fish from aquaculture, including

production from small-scale fish farmers, emerging commercial fish farmers
and stocked community water reservoirs and minor lakes. There are an
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estimated 20 000 ponds throughout the country with an average surface
area of 500 m² per pond. Production ranges between 1 500 kg per hectare
per year for subsistence farmers to 15 000 kg per hectare per year for
emerging commercial fish farmers. With improved market prices for fish,
government intervention for increased production and stagnating supply
from capture fisheries, aquaculture has begun to attract entrepreneurial
farmers seeking to exploit the business opportunity provided by the
prevailing demand for fish. This recent expansion in aquaculture has also
resulted in the transformation of 20 percent to 30 percent of the smallholder
subsistence ponds into profitable small-scale production units through
developments in management as well as scale of production. It is estimated
that there are 2 000 such farmers who own nearly 5 000 ponds, with an
average pond size of 1 500 m² per pond.
The new entrants, mostly from the middle and working class as well as a few
businessmen, target specific and established markets. They have adopted
improved production systems including inputs from technical experts for
better planning and management. Pond surface is in the range of 5 000 m²
to 50 000 m² numbering 500, an estimated 20 percent to 30 percent of
which are active. This category includes commercial hatchery operators and
a number of grow-out farmers who are already exporting to markets in the
Democratic Republic of Congo, Kenya and Rwanda. Industrial and more
intensified fish culture is only beginning to be established, largely through
foreign direct investment or as joint ventures between local firms and foreign
companies. Most farms/companies at this level are only in the process of
putting their infrastructure in place or are at the initial stages of the
production process. The majority of such companies is targeting production
at the regional markets and plans to enter international markets by
activating the currently non-utilized fish processing capacity in the country.
2.7 Market Demand
An important factor in the success of this venture is the ability to secure

demand and maintain a price premium for the Tilapia fish products. It will be
difficult for this venture to be profitable if the service to customers and
quality standards are not met which are critical in achieving the necessary
demand levels and price premium. The firm must ensure that personnel
hired for marketing and production have strong ties and experience in the
local Tilapia fish trade and industry, and that quality control within the
production cages/ponds is kept to high-level standards.
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The initial expected supply in Year 2 (Project Year 1) is 240,000 Tilapia fish
(120 metric tonnes). After the first year, supply is projected to increase by
10% per annum until it reaches 319,440 Tilapia fish (159.72 metric
tonnes) in Year 5 (Project Year 4). The average price received for live Tilapia
fish will be UShs. 6,000 per kg at Entebbe ex-factory price which will be
increasing at a rate of 10% per annum.
2.8 Target Market Segments
LAKE LAND PROPERTIES will aim to market its pond/cage-cultured Tilapia

products primarily to GREENFIELDS FISH FACTORY in Entebbe. We project
to supply 10 tons of live fish monthly, delivering 2.5 tons weekly in fish
transport containers on customized vehicle. Projected sale price including
delivery is at 6,000,000/- per ton of fish.
As the business grows in size and product volumes, LAKE LAND

PROPERTIES also targets to eventually sell live Tilapia fish to the following
additional market segments:-
 Wholesalers
 Restaurants
 Fish Processors and Exporters
 Supply of fingerlings to other fish farming enterprises in South-Western
Uganda
 Supermarkets
 Individuals
 Government of Uganda for fish-restocking purposes
2.9 Marketing Method
Initially, all the farmed fish will be sold directly to GREENFIELDS FISH
FACTORY in Entebbe straight out from the Tilapia cage fish farm site near
Lake Mburo until we reach such a size and capacity to process the farmed
fish and transport it to the other fish consumption markets in Kampala and
Entebbe.
The short-term marketing method that we shall use to good effect however is
to design ponds or tanks to such a size (not too big and not too small either)
that will make it possible for all the fish produced to be marketed in one day.
2.10 Marketing/Sales Strategy
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The LAKE LAND PROPERTIES customer acquisition strategy is composed of

the following market outreach components:-
 Direct sales in areas of high concentration of young folks (e.g. college
campuses)
 Internet Advertising
 Radio
 TV Advertising
 National Papers (e.g. the New Vision and its sister publications, Daily
Monitor, The Weekly Observer, etc.)
 Billboard Advertising
Also, as the fish-farming enterprise grows its market and output, LAKE
LAND PROPERTIES will also seek to reach out to the neighbouring fish
export markets – especially those of Eastern DR Congo and the Republic of
South Sudan which offer higher premium prices for value-added fish
products.
2.11 Economic Impact
With the current competitive prices for farmed Tilapia fish, LAKE LAND
PROPERTIES will be able to develop as a profitably sustainable commercial
enterprise that will support the related growth of goods and service providers
to this aquaculture enterprise. Besides, other budding entrepreneurs will be
able to draw inspiration from the success and growth of the LAKE LAND
PROPERTIES Tilapia fish farming enterprise to embark on their own
identical fish farming enterprises within the Lake Kachira bounds and
neighborhoods. This will stimulate the local economy and increase cash flow
in the rural areas.
2.12 Grant/Loan Request
LAKE LAND PROPERTIES is seeking UShs. 600 million in --------

Grant/Loan funding. The -------- Grant/Loan funding facility will be
applied towards start-up and operational costs. This includes fish farm
infrastructure establishment costs, procurement of fish farm equipment and
tools, and purchase of a fish transportation vehicle (refrigerated), and
financing of working capital. Start-up expenses include legal, up-front
insurance fees, payments for licenses, financial provision of feeds and
hormones and purchase of brood stock (Tilapia fish fry), acquisition and
installation of office equipment, fixtures and furniture, a provision for pre-
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operational expenses, and other start-up costs such as stationery, and phone
and utility deposits. Routine monthly operational expenses will include
inventory purchases, direct business expenses and other selling, general and
administrative expenses (SGA). -------- Grant/Loan funding will greatly
reduce the financial start-up burdens and provide for a much quicker path to
profitability.
2.13 Investment Planning
After review of the business plans of the proposed Tilapia fish farming
venture, it was determined that the enterprise can provide a positive rate of
return and can create significant wealth to the investors throughout the life
of the investment. Most importantly, the studies show that the projected
future demand base for frozen, chilled and dried Tilapia fish has a strong
foundation and will grow into the future. Based on this assessment, the
decision is to proceed with the investment.
The first step is to begin sourcing equity from each investor for the down
payment, and secure financing with -------- Grant/Loan funding. The next
step is to seek out individuals to fill crucial labor positions including the
marketing representative, and a general manager for the Tilapia fish farm
enterprise. Once the marketing representative is hired, that person will
immediately begin the process of seeking out new customers and working
with the customers who have already committed to purchasing. After those
positions are filled, then trading operations can begin and other labor
positions can be filled.
2.14 Project Investment and Financial Estimates
Project Cost
UG Shs 709,800,000
Table 1.1: Total Capital Requirements
Capital Investment UG Shs In USD In Actual
Actual
Land (30 hectares) – available 100,000,000 40,000
Fish Farm Infrastructure 87,000,000 34,800
Fish Farm Equipment & Tools 116,300,000 46,250
Fish Farm Start-up Costs 301,500,000 120,600
Cash Investment 5,000,000 2,000
Furniture and fixtures 3,000,000 1,200
Office equipment 10,000,000 4,000
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Pre-Operating Cost 12,000,000 4,800
Total Capital Costs 634,800,000 253,920
Working Capital UG Shs In USD In Actual

Actual
Equipment spare part inventory 8,800,000 3,520
Raw material inventory 16,200,000 6,480
Cash 50,000,000 20,000
Total Working Capital 75,000,000 30,000
Total Investment 709,800,000 283,920
Table 1.2: Project Financing

Initial Financing UG Shs In USD In %age
Actual Actual
Equity (Land + 109,800,000 43,920 15.47%
Cash)
Debt 600,000,000 240,000 84.53%
Total Investment 709,800,000 283,920 100.00%
Financials
Net Present Value @ 17% UG Shs
577,077,520
Internal Rate of Return 77.69%
Return on investment 13.48% in Year 1 (PY 2)
Break-Even Point (Kgs of Fish) 42,744
Break-Even Point (Value) UG Shs.
341,952,000
Break-Even Point (percentage) 26.76%
Payback Period 3.65 Years
Medium – term Agricultural Development Loan:
Interest rate 15%
Term 5 years
Grace period 1 year
Currency Uganda Shillings
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Exchange rate: UG Shs 2,500 to 1 USD (October 2012
rate)
LAKE LAND PROPERTIES predicts growth of 10% per annum in Tilapia fish
production and sales. In Year 5 (Project Year 4) the Tilapia fish farm expects a
sales output of 319,440 Tilapia fish (159.72 metric tonnes) and based
on the current price of UG Shs. 6,000 per kg (increasing at 10% per annum)
of Tilapia we expect excellent profits. We have positive indicators from
current Ugandan domestic industry players that all our Tilapia fish production
will be bought.
Highlights
1,400,000,000
1,200,000,000
1,000,000,000
800,000,000
600,000,000 Sales
UShs 400,000,000 Gross Margin
200,000,000 Net Profit
0
Year
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3.0 STATEMENT OF OBJECTIVES
 Enterprise budget support. Operate the fish farm as a commercial

and profit-oriented enterprise whose financial proceeds will be used to
support and sustain all aspects of LAKE LAND PROPERTIES’
recurrent and development expenditures.
 Model fish farm. Use the fish farm as a model project to demonstrate
and train other fish farmers on modern aquaculture practices and
management aspects while also using it to inspire shifts in fish farming
culture from subsistence fish farming to commercial fish farming
leading to increased income levels for the fish farmers such that they
can then be able to improve their livelihoods and cater for their day-to-
day basic needs like payment of school fees, medical care and so on
for their nuclear families.
 Poverty alleviation. Through the increased and large-scale

production of farmed fish, the local community members can be able
to succeed in poverty alleviation through the regular selling of fish and
have a bigger say in the negotiating of fair prices for their products.
 Food security. Fish is an important source of high quality food as well

as its flesh which is rich in proteins which are superior to those of beef
and poultry fish flesh contains anti-cholesterol which assists in
reducing heart diseases. Some fish such as haplochromines are used to
treat measles. In order to safe guard the values; the cluster will set up
a goal of ensuring that there is increased and sustainable profitable
fish production benefit the present and the future generation.
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 Utilization of land which otherwise would have remained
unexploited. The LAKE LAND PROPERTIES fish farm project will be
able to put idle land that would have otherwise lost its value as a result
of under- or lack of productive utilization.
 Artificial restocking of natural water bodies (replaces or

supplements wild fish catches). The Ugandan natural water bodies are
being over exploited whereby the use of poor fishing methods catches
immature fish that could be for future use. The Government of Uganda
(GoU) has now come up with the restocking of these natural water
bodies with the endangered species (especially Tilapia and North
African Catfish) such that LAKE LAND PROPERTIES would take up
this tender of producing the seeds.
 Creation of employment opportunities. The LAKE LAND

PROPERTIES fish farming project is going to create employment
opportunities for the redundant people who will see the business of
aquaculture booming, and will also want to join and become members
hence our objective.
 Export development. By the production of farmed fish on a

commercial level, the LAKE LAND PROPERTIES fish farming project
will be able to sell the excess production of fish to the neighbouring
countries hence creating a profitable product for export.
 Rural development. There are going to be knock-on rural

development effects after the introduction of the LAKE LAND
PROPERTIES fish farming project within the vicinity of Lake Kachira
because some other progressive-minded farmers in the area will be
able to start their own aquaculture projects on previously unutilized
land.
3.1 Mission
LAKE LAND PROPERTIES seeks to serve a range of fish processors and

exporters by exceeding minimum acceptable quality standards and by
providing the highest quality product at the prevailing market price. We
value our relationships with current and future customers and hope to
communicate our appreciation to them through our outstanding, guaranteed
product quality, personal service, and efficient delivery. Our commitment to
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our customers and the country of Uganda will be reflected through honest
and responsible business.
3.2 Vision
LAKE LAND PROPERTIES will strive to stimulate and support long term
economic growth and increased cashflow within the local areas of its Tilapia
fish farming and trading operations.
3.3 Keys to Success
Our keys to success are:
1. Establishing and maintaining working relationships and contractual

agreements with fish processors, exporters, and other large contractual
buyers.
2. Lifting a new fish farming enterprise to high levels of operational
efficiency and product quality within three years of operation.
3. Increasing our profit margin with the use of improved technology in our
fish farming enterprise.
4. Effectively communicating to current and potential customers, through
targeted efforts, our position as a differentiated provider of the highest
quality Tilapia fish products in Uganda.
4.0 PROJECT PROFILE
4.1 Project Brief
The project is about establishing a tilapia cage fish farm enterprise on Lake
Kachira in South-Western Uganda by LAKE LAND PROPERTIES that
provides the desired suitable environment for its successive growth and
expansion. The project would serve as a facility that utilizes agricultural,
industrial, and domestic outputs in the form of feed for an inland fish farm
that usually ends up as agricultural or municipal waste. Apart from
supporting LAKELAND PROPERTIES with a regular income stream to
support its recurrent and development requirements, it would also
significantly improve on the operation and management of the fish farm
enterprise as a profitably sustainable commercial enterprise.
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The proposed project is primarily focused on the domestic fish consumption
market due to the prevailing high demand and taste preferences. The main
feature of the project would include naturally grown fisheries in a clean
environment in keeping with the stipulated quality standards and principles.
This Business Plan explores the viability of setting up the inland fish farm
based on economic and technology trends and available local strengths,
weaknesses, opportunities and threats.
4.2 Background
Fish farming is an ancient practice that had been used for food purposes for
centuries. Australian, African and Asian regions were the historical fish
breeding centers since 6000 BC. The concept of inland aquaculture away
from the seacoast and big rivers was widely practiced in Central Europe
during the middle ages. Inland fish farming was started on commercial basis
in 18th Century. Seth Green was the first to practice commercial inland fish
farming in 1864 at Caledonia (USA). It laid down the foundation of
commercial fish farming and people has started practicing it in other
countries like UK and Canada. During 19th century improvement in
transportation made fish farming more convenient and profitable business by
targeting the adjoining market of the inland fish farming zone.
In recent times the industry has experienced a tremendous growth level as

compare to any agri-food industry on record. Many remarkable developments
and initiatives has been made in the said industry, however the most
important step was taken in 1960's when the intensive breeding of different
fish species was started at commercial level around the world. These factors
helped to accelerate the fish farming industry to unprecedented levels of
growth, making it one of the world's fastest growing agri-food sector.
4.3 Defining the Product
Fish is an animal which lives and breathes in water. All fish are vertebrates
(have a backbone) and most breathe through gills and have fins and scales.
Fish make up about half of all known vertebrate species.
Fish is a high protein, low fattening food that provides high range of health
benefits. The white fleshed fish is lower in fat than any other source of
protein and enrich in omega 3 fatty acids.
Fish meat is medically recommended as a diet for human body, it produced
essential nutrients insignificant amount which is required for healthy body.
Moreover, fishes are low in the bad fats commonly found in red meat, called
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omega 6 fatty acids that make it even more favorable product as compare to
red meat.
4.4 Raw Material
The primary raw materials used for fish farming are cow dung and other
types of agricultural organic wastes, in addition urea is added to enhance the
water quality and enhance productivity for better growth. Globally some
artificial feeds such as fish meal are used for feeding purpose but these are
very expensive and are not recommended as economical in Uganda.
However, it is the choice of entrepreneur or feed specialist to use or decide
the amount of daily feed requirement.
4.5 Proposed Fish Farm
Globally three techniques are practiced for inland fish farming.

a) Extensive Fish Farming
b) Intensive Fish Farming
c) Semi intensive Fish Farming
a) Extensive fish farming
Extensive fish farming is a self-sustaining natural production system in which

the fishes are totally feed on naturally grown plants and species within the
water. Extensive system uses low stocking densities (e.g., 5,000-10,000
larvae/ha/crop) and no supplementary feeding, although fertilization may be
done to stimulate the growth and production of natural food in the water.
Water changes are done on regular basis to maintain the oxygen level and
provide fresh water to fishes for better growth. The ponds used for extensive
culture are usually large (more than two hectares), may be shallow and not
fully cleared of tree stumps. Production is generally less than1 ton/ha/year.
b) Intensive technique
Intensive fish farming is a technique in which the fish are sustained in

artificial culture i.e. external food supply, artificial aeration and water
filtration. Intensive culture uses very high densities of culture organisms (e.g.
200,000-300,000 larvae/ha/crop) and is totally dependent on artificially
formulated feeds. Financial returns are therefore much more attractive than
those from extensive culture. Production is of course much higher (i.e. 10
tons/ha/crop).
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c) Semi intensive fish farming technique
Semi-Intensive farms harvested in ponds and supply with artificial feeds

along with natural feeds. This technique is basically a mixture of both
Extensive and Intensive fish farming. This technique is usually practiced in
small ponds i.e. about 1 acre each in size for ease of management. Semi
intensive system uses densities higher than extensive systems (e.g., 50,000-
100,000 larvae/ha/crop) and use supplementary feeding. Semi intensive
culture system is managed by the application of inputs (mainly feeds,
fertilizers) and the manipulation of the environment primarily by way of
water management through the use of pumps. Feeding of the stock is done
at regular intervals during the day. In Semi intensive culture production is
much higher than the extensive technique (i.e. 1.5 tons/ha/crop).
The management of each stated inland fish farming technique/system is

completely different with implications on capital and operational cost,
requirement of technical expertise and economies of farming. However,
keeping in view the cultural, economic and environmental aspects of
Ugandan market, Semi Intensive Fish Farming is proposed for the said
project.
4.6 Opportunity Rationale
Fish are nutrient product and wildly consumed around the world in a variety
of food items. They are used in various traditional dishes such as Fish meal
and a wide variety of traditional African cuisines and also consumed in
modern dishes like burgers, pizzas and canned products. In addition, fish are
also used in medicine industry. Such factors contribute to making fish
farming a viable project for investment.
The raising and selling of fish on commercial basis has proven to be

economically successful throughout the world. Fish meat is recognized as a
healthy food, low in calories and cholesterol, but rich in protein. This has led
to a dramatic increase in the consumption of fish products. Fish can convert
feed into body tissue more efficiently than other animals, transforming about
70 percent of their feed into flesh. Fish also have excellent dress out
qualities, providing an average of 60 percent body weight as marketable
product. Fish farming is a profitable business if the necessary arrangements
are made and properly managed. There is a huge business opportunity in
this sector.
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4.7 Market Entry Timing
Market entry timing is very critical in inland fish farming and can result in
high loss if not considered accordingly. The harvesting of fish should be
initiated before March so that the fish are matured enough for market till
November.
4.8 Proposed Locations
The proposed physical location for the establishment of the Tilapia cage fish
farm will primarily be in a warm area that provide suitable environment and
particularly water temperature range between 5-30 degrees centigrade. The
proposed LAKE LAND PROPERTIES fish farm will thenceforth be
established at Lake Kachira that straddle across Rakai and Kiruhura districts
in South Western Uganda where the company has its own 30-Acre plot of
land to develop a project of this magnitude. The project site is situated at
Twenshekye, Nyanga village which is approximately 5 km from Lake Mburo
National Park on the Western axis and approximately 40 km from Lyantonde
district headquarters.
4.9 Proposed Business Status
LAKE LAND PROPERTIES is a Ugandan-registered and board-constituted

Limited Liability Company established in 2007. It is fully owned and managed
by Ugandans, with its head offices in Entebbe where the overall
Administration and Marketing are based. The membership of the Board of
Directors will be at the discretion and determination of the Managing Director
and founder of LAKE LAND PROPERTIES – Mr. DAUDI MUSIIME.
LAKE LAND PROPERTIES is a limited liability company that was

incorporated in the Republic of Uganda on the -------- of --------------,
---------------. The company’s authorised share capital is UG Shs.
------------------/= made up of ------------- Ordinary Shares of UG Shs.
---------------/= each. The company has 3 shareholders and three directors.
LAKE LAND PROPERTIES commissioned AFRI-CONSULT PRECISION
PLANNING (APPL) to prepare a Business Plan on the commercial prospects
and financial viability of establishing and operating a 30-acre Tilapia cage
fish production farm based at Twenshekye, Nyanga village which is
approximately 5 km from Lake Mburo National Park a few kilometres off the
Masaka-Mbarara Highway.
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The Shareholders
Shareholder Shares held
[%age]
1. Mr. Daudi Musiime ------ ------%
2. Mr. YYYY ------ ------%
3. Mr. ZZZZ ------ ------%
4.10 Viable Economic Size
The total investment required for this project is UG Shs 709,800,000

million (USD 283,920). The investment mainly covers capital costs of UG
Shs 634,800,000 (USD 253,920) and working capital requirement of UG
Shs 75 million (USD 30,000).
Table 2: Project Investment

Description Amount (UG Amount (USD)
Shs)
Total Fixed Cost 634,800,000 253,920
Working Capital 75,000,000 30,000
Total 709,800,000 283,920
5.0 CRITICAL FACTORS IN DECISION MAKING
Following are the key factors recommended for initiating a successful

business.
5.1 Key Success Factors
The commercial viability of the proposed project depends on the following

factors:
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 Selection of proper location, equipment, and staff would facilitate the

project to run successfully.
 Farm should be located in an area that is not subject to flooding.
 Farm must not be located near river belt.
 Farm should have enough elevation so it can easily be desiccated
during the off season.
 Each farm should be prepared with proper soil i.e. China Clay to avoid
water seep.
 Availability of fresh water supply throughout the year.
 Farm should have road access even during the rainy season.
 It should be positioned away from agricultural activities to avoid spray
application of pesticides.
 Seeds must be purchased from certified dealers for the assurance of
desire fish species.
 Continuous efforts should be made for improving and marketing the
product on time.
 To attract larger number of customers the product must be processed
on basic quality standards.
 Each farm should maintain a written health and welfare program for
elimination of diseases and quality production.
 Economical Prices of final product.
 Efficient delivery will provide a competitive edge in capturing market.
5.2 Opportunities
Following are some major opportunities for the proposed project:
 Diversified demand of the product from the food industry and

medicine.
 Availability of abundant raw material.
 Lack of specialized producer.
 Established market and demand.
5.3 Threats
The proposed project will be facing the following threats:
 Substitute’s availability.
 Price fluctuations and macroeconomic instability.
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6.0 SUITABILITY OF THE SITE
6.1 Geo and Topographic Data of Lake Kachira
Lake Kachira in dimension is 12.5 by 2.2 miles (20x3.5 km) situated Latitude-
0.551944, Longitude 31.094444 and Antipode 0.551944-148.905556. It has a
mean area of 1,190Ha at high water. It has a mean depth of 4.1m. The lake
also acts as a watering point for over 20,000 heads of cattle from the
surrounding pastures on the southern axis during the dry seasons.
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Knowledge of its hydrological and water quality characteristics is limited.
Other than run-off water catchment during the rainy seasons the lake’s main
tributary is River Rwizi.
A baseline survey to assess the needs and requirements was done to

subsequently a feasibility study was carried out in mid-December 2011. The
important factors of category one assessment; (Temperature, Salinity,
Pollution, PH, Water exchange, Current) and category two; (Depth, Substrate
and Fouling) of cage Aquaculture were carried out and suitable sites were
selected accordingly.
The theoretical water temperatures range observed was between 23-26

degrees centigrade; with a PH range of 6.5-8.5. The lake water is turbid with
a secchi depth of 40-50cm. the scientific (physiochemical) appraisal results
after sample analysis and physical inspection are detailed below in Table 3.
The sampling and physical measurements were carried out at the proposed
project site at Twenshekye in Nyanga village.
Table 3: The table below shows the parameters average readings for
assessments carried out in November and December 2011 on the
five selected sites.
Site Site 1 Site 1 Site 1 Site 1 Site 1 Ave.
Values
Parameter
Temperature (0C) 26 25 26 25 25 25.5
PH 6.5-7.5 6.5-7.5 7.5-8.5 7.5-8.5 7.5-8.5 7.5
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DO (ppm) NA
Salinity (ppm) NA
Substrate Sand Sand Sand Sand Sand
Depth (m) 2 4.5 6 6 7.3 5.2
There is a constant water exchange by the river flow at all the five sites whose
access is by boat. There is available shelter and the distance from the main road to
the site is approximately 35 kilometers.
The above results show that the lake is suitable for cage farming.
6.2 Human Utilization Activities on the Lake
The major human activities are full-time fishing and animal watering. Fish
species that are indigenous include Clarias Mozambicus, Haplochlomis
species, Protopterus aethiopicus, Oreochromis esculentus, Oreochromis
niloticus, Oreochromis variabilis but catches started declinig from 1971 due
to population pressure; presently there are more than 1,000 canoes imposing
undue pressure on this lake, compared to its size. This greatly affects
productivity of the lake. It would have been worse if the landing sites on the
Western shores were not closed under the National parks Statutory Gazette
of 1983 for Lake Mburo National Park.
7.0 MARKET ANALYSIS
7.1 Target Customers
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The target customers for fish are households, hotels, restaurants and large
scale fish-processing and exporting companies in Uganda. Initially the project
will focus on local market, depending upon its successful operation it would
be market in other customer groups of the country at national level.
7.2 Global Market
Fish production, trade and utilization in the world has been increasing
dramatically fast due to the prevalence of huge demand. In 2007 the world’s
total fish output i.e. both inland and marine production was 140.4 million
tons that is double as compare to the production of 1980. The statistics
further reveals that there is gradual increase in production and consumption
since 1980.
Table 4 describes the statistics on world fish production, trade and
utilization as below:
Table 4: World fish production, trade, and utilization

1980 1990 2000 2006 2007
Production
(million tons) 71.9 97.7 125.9 137.2 140.4
Inland water 7.7 14.5 25.9 38.5 41.0
Marine water 64.2 83.2 98.0 98.7 99.4
Capture
(million tons) 67.2 84.6 93.5 89.9 90.1
Inland water 5.1 6.4 8.6 9.8 10.0
Marine water 62.1 78.2 84.9 80.1 80.0
Trade
(million tons)
Imports 19.8 33.7 49.2 55.0 54.8
Exports 21.0 32.4 48.6 53.8 53.1
Trade
(USD billion)
Imports 16.0 39.4 60.3 90.0 98.1
Exports 15.4 35.5 55.8 86.1 93.5
Utilization
Human consumption
(million tons) 51.6 70.4 95.7 111.0 113.7
Non-food use
(million tons) 20.3 27.3 30.1 26.1 26.7
Per capita food fish
supply (kg) 11.5 13.6 15.7 16.8 17.0
Source: FAO
7.2.1 Major Producers
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Out of total world production the Chinese production in terms of Quantity and Value
is at top as per data provided by FAO. China is contributing 31.42 million tons of fish
while India and Vietnam are other large producers by contributing 3.35 and 2.15
million tons of fish respectively. Table 5 describes the world leading producers of
fish in term of quantity and value as below.
Table 5: Major Producers of Fish

Country 2005 2006 2007
China Quantity (tons) 28,120,690 29,856,841 31,420,275
Value (USD) 29,954,213 33,299,941 39,684,662
India Quantity (tons) 2,961,978 3,169,303 3,354,754
Value (USD) 3,757,523 4,172,561 4,383,498
Vietnam Quantity (tons) 1,437,300 1,657,727 2,156,500
Value (USD) 2,930,650 3,316,142 4,525,750
Indonesia Quantity (tons) 1,197,109 1,292,899 1,392,904
Value (USD) 1,999,246 2,254,855 2,461,909
Thailand Quantity (tons) 1,304,213 1,406,981 1,390,031
Value (USD) 1,740,400 2,240,232 2,432,761
Bangladesh Quantity (tons) 882,091 892,049 945,812
Value (USD) 1,246,479 135,914 1,522,552
Norway Quantity (tons) 661,811 712,281 830,190
Value (USD) 2,135,712 2,748,562 2,977,742
Chile Quantity (tons) 698,214 802,410 829,842
Value (USD) 3,108,248 4,428,299 5,277,272
Japan Quantity (tons) 746,221 733,891 765,846
Value (USD) 3,178,416 3,098,904 3,172,949
Philippines Quantity (tons) 557,251 623,369 709,715
Value (USD) 793,580 981,504 1,234,199
Source: FAO
7.2.2 Major Exporters
China is the biggest exporter of fish in world in year 2007; China has exported US$
9,250,710 million of fish. Norway ranks second in world exports while Thailand is
third largest exporter of fish. Table 6 describes the major exporters as follows.
Table 5: Major Exporters of Fish (US$ 1,000)

Country 2005 2006 2007
China 7,519,357 8,968,051 9,250,710
Norway 4,885,226 5,503,249 6,228,123
Thailand 4,494,183 5,266,142 5,708,849
USA 4,232,041 4,143,146 4,436,746
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Denmark 3,685,243 3,986,519 4,128,359
Vietnam 2,756,139 3,372,242 3,783,834
Canada 3,595,693 3,659,857 3,711,890
Chile 2,966,917 3,556,594 3,677,002
Netherlands 2,820,138 2,811,705 3,280,643
Spain 2,579,057 2,848,676 3,230,749
Source: FAO
7.2.3 Major Importers
USA is biggest consumer of fish in 2007, it’s imported worth US$ 13,631,511
million, Japan is the second major importer with imports of US$ 11,384,490
million and Spain stood at third position with imports of US$ 6,980,372
million. Table 7 further describes the world major importers of fish.
Table 6: Major Importers of Fish in (US$ 1,000)

Country 2005 2006 2007
USA 11,982,336 13,271,315 13,631,511
Japan 14,438,337 13,970,740 13,184,490
Spain 5,632,087 6,359,092 6,980,372
France 4,562,629 5,069,238 5,366,203
Italy 4,224,081 4,716,917 5,143,834
China 3,979,232 4,125,990 4,511,576
Germany 3,234,841 3,738,906 4,278,560
UK 3,174,317 3,713,854 4,140,438
Korea Republic 2,366,543 2,752,606 3,090,028
Denmark 2,554,663 2,838,443 2,887,159
Source: FAO
7.3 Uganda Fish Farming Systems Distribution and Characteristics
The Ministry of Agriculture, Animal Industry and Fisheries has identified 31

districts as suitable for fisheries and aquaculture development based on both
natural and socio-economic factors. These districts are: Mayuge, Jinja, Bugiri,
Busia, Mukono, Mpigi, Wakiso, Masaka, Rakai, Mbarara, Bushenyi, Ntungamo,
Kasese, Hoima, Masindi, Nebbi, Gulu, Adjumani, Arua, Kamuli, Soroti, Lira,
Iganga, Tororo, Pallisa, Mbale, Apac, Kaberamaido, Kabarole, Kamwenge and
Kyenjojo. They are located around the country's major water systems
including Lake Victoria Crescent, Lake Kyoga basin, River Nile catchment,
Edward-George complex and the Koki lakes.
The most common production systems at all these locations are extensive
and semi-intensive pond based aquaculture systems.
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7.4 Aquaculture Development and Production in Uganda
Aquaculture has been practised in Uganda since 1950s but has always
remained at a subsistence scale with negligible production volumes and
extensive production systems (Balarin 1985). With production volumes of
less than 5000 tonnes annually, it hardly contributed to national fisheries
production figures up to the year 2004 (Figure 2). Since 2005, the
decreasing wild fish catches and exports prompted an alternative to bridge
the deficit. To improve the self-sufficiency in fish supplies for close to 75% of
the population located close to major towns along the lakes with a tradition
of eating fish, considerable efforts have been made to increase aquaculture
production. There was need to transform the sector into a self-sustaining
commercial aquaculture industry (USAID-FISH 2009). Aquaculture has now
attracted interest and investment from both the private sector and public
institutions in the country (UIA 2005). It has grown in the past 10 years from
less than 5000 tonnes a year in 2002 to over 50,000 tonnes in 2008 with
African catfish (Clarias gariepinus) accounting for two thirds of the
production.
Figure 2: Aquaculture production in Uganda by specie since 1995

(FAO-Fishstat 2009)
Uganda now lies second in aquaculture production in Sub-Saharan Africa

next to Nigeria much as the global contribution is less than 0.5%. In terms of
industrial drivers, there are currently 11 hatcheries providing quality catfish
fingerlings to farmers and one farm with sex reversed tilapia. The feed
industry that started with producing sinking feed in 2006 is now fully
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installed with extrusion facilities for floating pellets (USAID-FISH 2009).
Another driver is the ready local market for the cultured species although
prices have been reported to be low. It should also be noted that Uganda’s
aquaculture sector suffers from an uncoordinated marketing system. With
increased government commitment to develop aquaculture, the industry has
good prospects for further development. For example, Uganda Investment
Authority encourages large commercial scale investment in the sector by
providing a tax holiday and an aquaculture development strategy that will be
furthered into a policy has already been drafted. The government target is a
yearly production volume of 100,000 tonnes by 2017 (NEMA/UNEP 2004).
Uganda depends on capture fishery and because of increase in population

and global market for fish and its products great pressure has increased on
the lake resources thus causing a decline in fish capture. (Fisheries sector
strategic plan, 2003) There is a growing gap between the supply and
demand for fish in Uganda, Africa and global markets, which aquaculture
production is well placed to fill given its endowment with natural resources.
Uganda aquaculture production is not significant even in terms of global and

African production. At the present time, the sector consists primarily of small-
scale pond enterprise production of tilapia and catfish. Data on the exact
numbers of farms, their size, and production, are not readily available, but
there are several thousand pond-based enterprises. There is only one
significant commercial operator using a cage-based production system,
Source of the Nile (SON) and Fish Farms Limited at Jinja which produce
tilapia. (EU Delegation report, June 2011)
Aquaculture sub-sector is mainly constrained by; the low skill levels of

farmers and advisory service providers, competition in the marketplace from
cheap fish from capture fisheries, low investment capital, high feed costs
among others which ultimately constrains profitability. (National Fisheries
Policy. EU Delegation Report, June 2011)
According to the National Fisheries Policy, Aquaculture is projected to offer a

potential annual production in the next ten years of around 12,000 metric
tons to meet the widening “fish gap” between production and human
population growth anticipated by 2015, enough to meet the domestic
consumption of 1.2 million people at 10kg/per person/year (National
Fisheries Policy).
Private sector commercial aquaculture is probably the only option if this sub-
sector is going to contribute significantly to national fish production in the
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next ten years. Commercial aquaculture enterprises exist in Uganda but their
production operations, in contrast to other sub-Saharan African countries
(Zambia, Zimbabwe, Republic of South Africa), are not functioning
successfully. These countries have facilities that produce in large cages,
where annual production figures range between 1,000 - 5,000 metric tonnes
per operation.
The development of commercial-scale fish farms in Uganda is supported by

several Government policies and strategies because of its potential role in
generating incomes and employment and in contributing of food security, in
particular:
 The National Fisheries Policy (2004);

 The MAAIF Development Strategy and Investment Plan (2010-2014);
 The Uganda National Aquaculture Development Strategy (2008); and
 Investment terms provided by the Uganda Investment Authority.
A number of previous studies (e.g Megapesca 2006, Norad 2009) have

supported the view that there is potential to develop a viable aquaculture
sector in Uganda, especially due to the competitive advantages that it has in
terms of water bodies, available brood stock, favorable physical/climatic
conditions for growing and its location near to regional markets.
7.5 Cage Farming in Uganda
7.5.1 The Current Situation
Cage culture is a new activity in Uganda, having commenced in early 2006. It

was encouraged by the government as a development priority. This is
because revenues from the dwindling wild capture fishery are a major source
of foreign currency for Uganda and the government believes that
aquaculture will supplement these revenues. Uganda has huge water bodies
and areas suitable for cage fish farming especially for tilapia. Small cages,
often called low volume, high density cages (LVHD), have been promoted as
a suitable farming system for Uganda and are now being used by both small
and large scale farmers because of large size differentials between fish.
(Isyagi, pers.comm.).
Preliminary cage culture trials using LVHD have been carried out at Jinja by
the USAID-supported FISH project with promising results. Yields of 180 kg per
cubic meter have been obtained in pilot trials (FISH-USAID 2008). There are
currently pilot-scale cage sites on Lake Victoria, in Entebbe and Jinja areas.
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These are SON (Source of Nile), Fish Farm Limited and United Fish Packers
Limited.
A recent study by European Union team on potential for promoting

Commercial Fish Farming in Uganda found out that the potential for cage
farming is virtually unlimited. It was even found out that large-scale cages
can be possible and can support an industry producing 100,000 tons/year
without any noticeable environmental impact, if regulated and managed
properly (EU Delegation in Uganda, June 2011).
7.5.2 Large Cages
Large cages have been widely used for grow-out of tilapia world-wide. Large
plastic circle cages have become the industry standard for many commercial
aquaculture operations. They are robust, relatively cheap (in terms of cost
per cubic metre) and easy to manage. However, they do require vessels to
service them, usually equipped with cranes, fish pumps and other equipment
to make fish handling easier.
In Africa, large cages have since been piloted in Cote d’Ivoire, Ghana, Kenya,
Malawi, Rwanda, South Africa, Zambia and Zimbabwe. Perhaps the most
appropriate example is the Lake Harvest fish farm in Zimbabwe which was
established in 1996/1997 and is still operating as a profitable business
supplying tilapia, this year (2011) building up to 20,000t/Yr over the next few
years (Patrick Blow1 and Shivaun Leonard 2007).
In Uganda SON will establish large cage farming starting in 2012 with a
target of 5,000 tons annually (SON BUSINESS PLAN 2011-13).
Table 8: The advantages of fish cages

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 Cages are less expensive than building ponds, dams and other
infrastructure.
 Cages can make use of existing water bodies (such as lakes, dams or
the sea) that have good water quality.
 Cages do not require land-ownership and can be moved to the most
suitable area.
 Cages protect fish from predators and theft.
 Cages are versatile in that they can be small and easily maintained for
low volumes of fish such as ornamental species, where many different
individual species are kept by one producer in groups of cages.
 Fish can easily be harvested from cages by simply pulling up the
netting to crowd the fish, and then dip-netting out the required
number.
 Cages can be kept in groups which facilitates the size-sorting of fish.
 Cages prevent unwanted reproduction of some species (such as tilapia)
as the fish are unable to establish nesting territories in the confines of
a cage.
7.6 Profitability of Aquaculture in Uganda
Value (profit) is created when the price the customer is willing to pay for a
product in excess of the costs incurred by the producer. Tilapia and catfish
species produced in Uganda are low value species and the margins
experiences by farmers are usually small with reports of losses in some cases
(USAID-FISH 2009). A large part of a product’s value addition is made outside
the firm, by its suppliers and customers, who therefore have a large impact
on the total cost of the production and margin in the value chain. Even with
best management practices, profitability of aquaculture in Uganda gets
crippled by rising feed prices (about 60-70% of production costs) without a
proportionate improvement in FCR performance and low fish prices at the
end of the chain. However, some sectors like hatchery production have had
been considered more profitable than grow-out. Cages also perform better
than ponds in tilapia production. To improve aquaculture fish price, solutions
like live fish sales, processing and establishing niche markets; are being
used. Cost-benefit ratios depend on the species being cultured and currently
it is not possible to predict probable profit margins for all production systems.
7.7 Market and Trade
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When they decide to sell, most rural farmers sell their fish at the pond site. A
few have established stalls by the roadside or within the nearest trading
centre where they sell their 'catch' from the pond on a regular basis. In a
number of districts farmers have formed associations through which they
have arranged for synchronized harvesting and collective marketing. In some
instances, the fish is processed by sun drying, salting or smoking and is
transported in bulk to more lucrative markets such as urban centres or
border points for regional trade. At the regional level the main importing
countries are the Democratic Republic of Congo, Kenya and Rwanda in
diminishing order of importance.
Fish is also being processed for shipping to the border market points by
individual farmers and by traders who are not directly involved in fish
production. The two major species traded are North African catfish projected
at about 70 percent for the regional market and Nile tilapia, most of which is
traded locally with some also processed for export. The only known
international export of farmed fish from Africa consists of 1.5 tonnes per
week of cold-smoked catfish which comes from a firm in Entebbe.
All fish sold by the ponds is fresh, while that sold to markets further away is
processed as described above. There are size limits to aquaculture products,
but to differentiate between farmed and capture fish a fish movement permit
is required indicating origin and destination of the fish. The authority
responsible for issuing movement permits is the Department of Fisheries
Resources or designated officers in the local governments. Another item now
being traded regionally is the fish seed of both North African catfish and Nile
tilapia which is being transported live to Rwanda, Tanzania and the
Democratic Republic of Congo for grow-out production, and to Kenya and
Tanzania as bait for the Nile perch fishery on Lake Victoria.
7.8 Marketing
The marketing of pond-cultured fish follows the traditional channels of

distribution. Generally, fish are distributed in the market through middlemen
and wholesalers. The role of middlemen and wholesalers is to identify buyers
and negotiate the price. Fish are transported to the urban market and are
sold to retailers. The time spent in getting fish from the farm to the retail
shop varies from area to area. Although collection and handling of fish has
improved with the use of loader vehicles, but it is an established fact that
greater the distance between the farm and consumer, more complicated will
be marketing system including their collection, handling and transportation
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to the middlemen or consumer as per perishable nature of the product. The
trick in marketing is availability of current market information of fish supply
and demand, which will determine the selling price.
7.9 Contribution to the Economy
There are three types of aquaculture practiced in Uganda and they differ
according to the market and type of farmer and their contribution to overall
fish production. The first category is that of rural aquaculture which is
practiced basically for subsistence. It is a low or no input system largely
dependent on the public sector and friendly farmers for fish seed and advice.
From this segment, has emerged the small-scale aquaculture. This category
is carried out by what the Department terms as small-scale progressive fish
farmers. Their aim is to produce fish for income generation and some for
household animal protein requirements. The third category is that of
'emerging commercial fish farmers' who, though not operating fully as
commercial modern production enterprises, are aspiring to turn their farms
into business ventures through production and trade in farmed fish. Their
motive is solely profit through marketing of aquaculture products to high
paying markets. The Department, through the support of DFID (Department
for International Development, UK) established that rural aquaculture is vital
in the provision of animal protein to the rural communities, but makes a
limited contribution to overall fish production and the national economy. The
second category of progressive small-scale fish farmers, driven by the quest
for income and profit, has a more significant bearing on fish production, and
contributes directly to the rural economy through trade in farmed fish. The
farmed fish from the third category, the emerging commercial fish farmers,
makes a very significant and visible contribution to fish production and the
national economy.
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8.0 MARKETING PLAN & SELLING TACTICS
8.1 Grow-Out
We plan to sell live fish and deliver to customers preserved in ice to maintain
the quality of our product. Our main target customer is Greenfields Fish
Factory in Entebbe. We project to supply 10 tons of fish monthly, delivering
2.5 tons weekly in fish transport containers on customized vehicle. Projected
sale price including delivery is at 6,000,000/- per ton of fish.
8.2 Fry Production
Most of the commercial farms do suffer inadequate supply of quality seed

including the small-scale farmers supported by NAADS. The market is
enormous despite other seed producers like SON. Because of the distance
factor, our price for 1g fry will be sold at Ugx100/- which will be UGX 50/=
lower than our competitors. Our customers are expected to pick the fry from
the farm and we have in place Oxygen cylinder and polythene bags to pack
for them for such long distances. On special orders and volumes we will be in
position to use our van to deliver to farmers.
8.3 Target Market Segments
LAKE LAND PROPERTIES will aim to market its cage-cultured and Tilapia
products on the following market segments: -
 Wholesalers
 Restaurants
 Fish Processors and Exporters
 Supply of fingerlings to other fish farming enterprises in South-Western
Uganda
 Supermarkets
 Individuals
 Government of Uganda for fish-restocking purposes
8.4 Presentation of a Marketing Strategy that is Sensible

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The LAKE LAND PROPERTIES fish farming and production enterprise

demands a close relationship with our customers. The LAKE LAND
PROPERTIES core value-add to them is our ability to help effectively run a
business. Thus, we need to have direct contact with our customers. We need
to listen closely to them to see what works, and what needs to change.
Because of this need, our primary sales channel will be direct to the
customer.
We will first focus on the large Catfish and Tilapia markets in the large towns
of Uganda most notably Mbarara and Kampala – Uganda’s capital city. As the
operation grows, we will begin establishing a presence in other areas of the
country.
8.5 Selling Tactics
There is a large and growing segment of Uganda’s population that is

increasingly turning to fish as a major food consumption staple. It is for this
particular reason, that our customer acquisition strategy will thus have
several components: -
 Direct sales in areas of high concentration of young folks (e.g. college
campuses)
 Internet Advertising
 Radio
 TV Advertising
 National Papers (e.g. the New Vision and its sister publications, Daily
Monitor, The Weekly Observer, etc.)
 Billboard Advertising
As the fish farming enterprise grows and expands its output and operations,
LAKE LAND PROPERTIES proposes to enter the more lucrative direct fish
export market starting off with the neighbouring regional markets where
fresh and smoked fish fetch premium prices.
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9.0 FARM ESTABLISHMENT
9.1 Description of Fish Farming Technique
Basically, three different techniques are used for inland fish farming as
described earlier. However, keeping in view the economical, technical and
managerial factors, semi-intensive fish farming technique is suggested for
the proposed project.
In semi-intensive fish farming feeding is carried out at least once per day and
fertilizing once per week. In addition, natural sources of feeding are used
simultaneously with artificial feed sources for maximizing output. Feeding
and fertilizing were chosen as indicators of the intensity level as these
parameters are more operational than others. Semi intensive fish farming
uses higher densities (e.g., 50,000-100,000 larvae/ha/crop) and use
supplementary feeding. Semi intensive culture system is managed by the
application of inputs (mainly feeds and fertilizers) and the manipulation of
the environment primarily by way of water and fresh air management
through the use of pumps. Feeding of the stock is done at regular intervals
during the day.
9.2 Site Selection
Special consideration should be given to the location of proposed facility. It

should be located in an area that is neither subject to flooding nor near to
rivers. The selected location should have enough elevation so that it can
easily be dried in off season. In addition, many other factors must be
considered while selecting site. These factors may include availability of
china clay in soil, round the year adequate water supply, road access even
during the rainy season and location away from agricultural activities to
avoid pesticides application and noise pollution.
9.3 Structural Design of the Land
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The site for proposed fish farm will require proper surveying to determine the
slope, bed of pond should be kept slight in slope to take advantage by
allowing the water to flow as much as possible by gravity. This slope will
provide water to move easily hence increase the natural oxygenation process
and reduce the soil excavation due to water strike which ultimately results in
the lowering of operational costs.
Water distribution channels should be placed on top of the pond dikes and
the drainage channels from the ponds should be kept at the lowest point of
the land. Effort should be made to utilize the natural attributes of the land to
minimize capital costs and to facilitate the operational efficiency.
9.4 Soil sampling
Soil samples should be taken in account of the proposed site for analysis.
These samples should be collected from the surface, middle and depth. The
required lab tests are pH, soil composition (the ratio of sand to silt to clay),
total dissolved salts, calcium and magnesium etc. Clay is most desirable for
water retention in the fish ponds. If the soil is sandy at the surface but
contains sufficient clay at an accessible depth, the sandy soil should be
excavated completely, and the clay will be used for the final layers of the
pond bottom and pond banks to minimize water losses.
9.5 Electricity Fixtures
Fish farms must be furnished with proper electricity facilitation for daily
routine operations and particularly for the management of water and air. In
addition, for quality inland farming machinery like filter, water pumps and
blower must be installed.
9.6 Pond
The most appropriate pond type is the combination of both

excavated/elevated ponds. If the soil has sufficient clay content, the dikes
can be built form the soil that is removed during pond excavation, thus
excavation costs are minimized. Elevated ponds are recommended
appropriate for natural oxygenation and could be partially drained by gravity.
The proposed project will be established on 9 hectares of land, consisting of

8 ponds with an area of1 hectare per pond. Appropriate walkways must be
designed between ponds for ease of Management.
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Preferably a rectangular shaped pond is desirable. It should be constructed

by excavation 2 to 3 feet soil and elevating for 4 to 5 feet from ground level.
The crest of the embankment should be 4 to 5 feet and depth should not be
more then 8 to 10 feet, having a minimum slope of 1 to 2 feet.
9.7 Fertilizers
Nitrogen and Phosphorus are the primary Nutrients required to stimulate

productivity of the pond. In Uganda, there are two sources of organic
fertilizers, Chicken manure and Cow dung.
The recommended inorganic fertilizers are Urea, Di-ammonium Phosphate,
Single Super Phosphate, Ammonium Sulphate and Nitrogen.
Different fertilizers require different application procedures, The inorganic

fertilizers urea and others except DAP dissolves quite rapidly, and can be
placed directly into the pond water, Di ammonium phosphate, however,
requires extra effort to dissolve and should be mixed with water in a bucket
or basin and dissolved as much as possible prior to distribution in the pond.
Fertilizers should be added on regular basis throughout the summer to
sustain the productivity.
9.8 Water Requirement
Water is the most essential component of inland fish farming. Normally two
sources of water are preferred i.e. tube well and Irrigation canal water.
Irrigation water comes from the entire catchments area of the drainage, thus
it carries high loads of silt, and is subject to change in environmental
conditions and water quality (temperature changes, rainfall silt loadings,
alkali salt runoff, etc.) it may also carry a large number of trash/ carnivorous
fish. In case of selecting irrigation water, proper filtration method must be
used for obtaining the desire quality.
The water quality of the tube well should be analyzed, oxygenation is main
problem with the tube well-water, and arrangements must be made for
oxygenation of water that can be accomplished by installing air blowers.
Thus, temperature and dissolved oxygen should be tested at the site. A
sample should be taken in one liter bottle capable of being sealed and
transported immediately to a lab for further examination analysis, tests of
the total alkalinity, pH, nitrogen, salinity, and total dissolved solids are
required.
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Water color is a good indicator of its quality. A good robust green color is
most desirable, maintainable by the addition of feed (Cow dung) when the
green starts to fade to a light brown.
Selection of the water source i.e. Tube well or Irrigation is totally dependent
on the choice of entrepreneur however keeping in view the economical
factor, irrigation water is proposed.
9.9 Species Selection
With its good quality growth characteristics, easy production of fish seed and
good taste across the country, Nile tilapia (Oreochromis niloticus) was until
recently the most farmed species. Nile tilapia was transplanted from Lake
Albert to restock Lakes Victoria and Kyoga and several of their surrounding
minor lakes and adjoining river systems. Through restocking programmes
and aquaculture, it has been planted in virtually all Uganda waters including
shared/transboundary water bodies. The only drawback is its prolific
reproduction and the seemingly resultant stuntedness.
North African catfish (Clarias gariepinus) has recently overtaken Nile tilapia
as the most popular species for aquaculture in Uganda. Rural farmers have
grown fond of it, and there is a growing regional market for this species. Its
main characteristics are its fast growth and ability to literally feed on
anything organic available at household level. This species is found in all
waters of Uganda, especially those linked to swamps, and it has traditionally
been a primary target for a good segment of the fishing community. North
African catfish currently contributes an estimated 60 percent of aquaculture
production in Uganda. The most limiting aspect of the culture of the catfish in
Uganda is the availability of good quality and sufficient fish seed as when
required by the grow-out farmers. This has been largely overcome with
support from FAO. Fish seed for North African catfish can easily be produced
in quantities demanded by grow-out farmers.
The third most frequent species is the common carp (Cyprinuscarpio) which
was first introduced from Israel in 1941 with the aim of stocking the
fingerlings in the relatively colder waters of Lake Bunyonyi in southwestern
Uganda. However, propagation of this species was only successful in the late
1940s and was first tried out with farmers in the early 1950s in the Buganda
region in central Uganda followed by Kigezi in southwestern Uganda. The
common carp did much better than tilapia and was preferred by farmers, but
inability to produce sufficient quantity of fish seed, poor extension and
change of focus of the post-independence governments did not favour the
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expansion of carp aquaculture in Uganda. It is currently abundant in some
parts of the country, but only as a minor component.
Tilapia zilli and Oreochromis leucostictus were transplanted from Lake Albert
along with Nile tilapia and Nile perch from the 1940s in an attempt to
augment the fisheries of Lakes Kyoga and Victoria. Although the two species
were successfully propagated and distributed, they have not been as
successful as Nile tilapia in either natural waters or in fishponds. The other
species used in aquaculture but introduced from outside the country are
Tilapia rendalli, black bass and trout. These three were initially very
successful, but only Tilapia rendalli can still be found in the natural waters as
it easily reproduces in the wild while black bass and trout need artificial
propagation for recruitment.
Other species that have been introduced and cultured in Uganda waters
have been the giant river prawn (Macrobrochium rosenbergii) and the red
swamp crawfish (Procambarus clarkii). The former is only maintained in the
country by regular importation of larvae for culture, while the latter has
established reasonable populations in Lake Bunyonyi and at Kajjansi
Aquaculture Research and Development Center. However, the red swamp
crawfish at Kajjansi has become a menace as it bores through the earthen
ponds causing leakage and cross-pond fish mixing.
9.10 Fish Growth
Growth is defined as weight gain during a specific period of time. Fish are
cold blooded animals, and as such, their metabolic rate is governed directly
by the ambient water temperature. Every specie has an optimum
temperature for growth, a temperature at which all of its physiological
functions are optimized, including growth rate and resistance to disease.
Although the optimum temperature for growth has not been precisely
determined, the available empirical growth data suggests that their optimum
growth occurs at approximately temperature between 25 to 30 degree
centigrade. At higher temperature than this, a thermal stress occurs,
resulting in an excessive metabolic rate, reduced growth, increased oxygen
consumption, and greater susceptibility to diseases. If temperature is
significantly high than 30 degree centigrade then recommended
management strategy should be add fresh water to the pond to reduce water
temperature.
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Growth monitoring of all species are required at intervals of thirty days
before final harvest. The desired final product for all species is a minimum of
1.5 kg at harvest.
Table 9: Regular activities that are essential to efficient fish

production
FREQUENCY ACTIVITY
Twice daily Feed fish, twice daily for juveniles
Check inlets and outlets, or pond levels
Observe fish for signs of ill-health or unusual behaviour
Remove any dead fish
Daily Check water temperature
Check pumps or other electrical equipment
Check predator or anti-theft protection
Weekly Check water quality and recording parameters
Estimate use and replacement of feeds and other
consumables
Monthly Sample and estimating growth of fish
Drain of ponds to size-sort stock
Remodel and fertilizing of ponds
Redistribute stock according to size and growth stage
Maintain plumbing and other equipment
Breeding and preparation of fingerlings for restocking
3-month intervals Draining and harvesting from ponds or tanks, or cages
Processing of catch
Marketing of processed harvest
Remodeling and fertilizing of ponds; make repairs to
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tanks or cages
Restocking with fingerlings
Clean and dry nets used in harvesting
Yearly Building of new structures, additional ponds, tanks or
cages
Make improvements to storage or processing facilities
Accounting and annual record-keeping
Plan for improvements
Replace brood-stock
Replacement of equipment such as nets, buckets,
vehicles
Maintenance of serviceable equipment (pumps,
plumbing, etc.)
Maintenance and upgrade of anti-theft and predator
protection.
9.11 Supplementary Feeding
In a well-managed pond enough food will be produced to permit the North

African Catfish, Nile Tilapia or Carp to attain marketable size in a prescribed
growth period. All species including the specialist plankton feeders will
accept supplementary feeds and additional weight gain may be realized, but
the bottom and water column feeding species (African catfish and Carp) may
receive the most benefits, especially if the amount of organic material in the
pond is limited.
Four rules should be followed when feeding fish.
1) A regular feeding schedule must be followed, because infrequent

feeding will have little measurable effect on growth. The fish should be
fed on daily basis during the warm months.
2) The quantity of feed given must be calculated by the farmer based on
the actual sample weight data collected at the end of each month,
3) The fish must be fed at the same time each day, and at the same place
in the pond. The fish will quickly become accustomed to being fed, and
will often move to the feeding area as soon as the farmer appears at
the edge of the pond, This practice would avoid feed waste.
4) The farmer must carefully observe feeding behavior and determine the
extent to which the fish are consuming the feed given.
Supplementary feeds and feed mixtures must be fresh, since the materials
quickly disperse and become unavailable to the fish. Instead, the feed should
be mixed with enough water to form a sticky ball. Balls of feed measuring 2-4
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inches in diameter may be carefully placed in the pond at the designated
feeding areas, where they will be readily located and consumed by the fish.
The fish should be fed slowly, and the farmer must stop feeding when there
is no feeding activity especially in cloudy/ rainy days.
Table 10: Nutritional requirements of the juvenile stages of local

aquaculture species:
Nutrient Species
Tilapia Common carp Trout Catfish
Protein 35% 25-38% 40% 40-42%
Lipid 8% Up to 18% 12% 10-12%
Energy 2500-4300 2700-3100 2800-3000 2800-3100
(Kcal/kg)
Table 11: Various types of artificial feeds and their uses:

FEED TYPE SIZE ATTRIBUTES
Artemia or brine Microscopic Artificially newly-hatched live food
shrimp for fish fry. Contains all the feed
requirements for swum-up fry. Dried
eggs are available in cans that are
easily stored until used.
Specialised dry Several microns In powder form for swim-up fry and
micro-sized fry and only very small juveniles. Can be laced
larval feeds with hormones or other treatments,
such as to produce mono-sex
tilapia.
Flakes Thin, easily Ideal high-protein feed for small fish
crumbled and ornamental species.
Spirulina flakes 1–5 mm Spirulina-based dry foods for
or pellets vegetarian fish, like some tilapia
and ornamental species.
Crumbles 0.1–1 mm Residue of pellets, ideal for juvenile
fish.
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Pellets 0.5–1 mm Fishmeal-based balanced diet for
juveniles and fingerlings.
1–3 mm Used to stimulate growth of
juveniles and sub-adult fish, with
high protein content.
3–5 mm Reduced protein content for adult
fish.
Floating 1–5 mm For surface-feeding fish like trout.
Sinking 1–5 mm For bottom-feeding fish like tilapia,
carp and catfish.
Chicken or 3–5 mm Not designed for fish, but
rabbit pellets acceptable to most tilapia, carp or
catfish species. May be more
readily available then actual fish
pellets.
Figure 3: Reasons why fish may stop feeding
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A few reasons why fish may stop feeding. The exact reasons should be
determined immediately and the appropriate steps taken to correct them.
9.12 Production Cycling

The overall production cycle for the inland fish farming comprises of 8-9
months which is mainly subjected to the life/age of the seed (specie). If fresh
seed is used (with an age of less than 20 days) the production cycle will take
9 months for the production of desired output. It varies respectively with the
selection of fish (seed) age. Keeping in view the economical prospective, it is
suggested that fish with different age may be used for different ponds.
Table 12: Fish Farming Enterprise Management – Essential Components

Fish farming enterprise is based on three essential components according to
Schmittou, Jian and Cremer (1998). To be successful, these three principles must
come together and include:
1. The Market: The farmer should know his market first and foremost.
2. Inputs: Quality and Quantity: Without these, the farmer’s production will
be low.
 Water Quality - Successful fish farming requires good, year-round water
quality.
 Fish Stock - High quality fish stocks of known origins are essential for
successful growth.
 Fish Feeds - The best quality fish feeds manufactured to the highest
standards is needed for fast growth at low cost Feed Conversion Ratios (FCR).
3. Farm Management: The fish farm manager and his team of staff must apply
best management principles to achieve the maximum fish productions.
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9.13 Harvesting
One of the benefits of fish cage farming is the ease of harvesting the fish.
Fish may be removed with a hand-held net and processed or transported as
they are removed. If the cage is large, nets may be used to move the fish
toward one corner, where they may be more easily hand netted.
Table 13: Equipment list for draining and harvesting ponds
• Seine nets
• Large dip nets
• Small dip nets
• Throw net, fishing rods, bait, hooks, etc.
• Drums (several)
• Buckets (several, small and large)
• Tanks or porta-pools (2 or more), or
• Large keep-net that can float in dam
• Air blower or pipe with flowing water
• Airline, airstones, air-line valves, gang-valve for pipes
• Crocodile-clips or cigarette-lighter battery connection
• Nets to cover tanks (to stop fish jumping out)
• Shade cloth
• Bakkie with canopy
• Rope or strapping to secure drums in bakkie
• Some short lengths of piping (2 m x 20 mm pipe)
• Long lengths of piping (40-50 mm diameter) for through-flow of fresh water.
Table 14: Methods to harvest fish from ponds:
• Assemble equipment
• Set up holding tanks for the catch
• Seine net the pond and sort the catch
• As water level drops, clear catching basin of sludge
• Catch remaining fish from basin
• Once purged in holding tanks, pack into drums.
9.14 Problems
With the high density of fish used in cage fish farming, diseases and
parasites spread quickly among the fish. Constant monitoring is required.
Reduced food consumption by the fish is frequently a sign of disease or
water-quality problems. Oxygen levels in the water are influenced by water
temperature, algae, plankton, sunlight and decomposition of plants, excess
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fish food and normal fish body waste. Artificial oxygenation is frequently
required to maintain a healthy oxygen level.
10.0 MANPOWER REQUIREMENT, MANAGEMENT AND ORGANISATION
10.1 Overview
For the successful operation of the proposed LAKE LAND PROPERTIES

Inland Fish Farm, the management should have adequate and appropriate
knowledge in specific features of fish farming. These important areas
include:
 Diseases control,
 Housing and equipment,
 Feeding,
 Genetic improvement,
 Marketing.
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Consequent upon the medium size of the farm, the management structure
will not be too elaborate. Since a promoter will source for the financing the
farm, the composition of a board of directors may not be necessary, although
it is advisable that this be put in place. The overall management functions,
which will include broad policy formulation, approval of budgets and strategic
plans, will fall on the promoter who will also function as the Managing
Director and Chief Executive Officer of the fish farm, although a lot of
assistance and value can be derived from the constitution of a Board of
Directors.
10.2 Team Expertise
The LAKE LAND PROPERTIES fish farming project will be stewarded and
driven by a team with varied background with experiences in a variety of
industries and across different functions. The Managing Director of LAKE
LAND PROPERTIES – MR. DAUDI MUSIIME who is spearheading and
promoting this project is a man with extensive experiences and interests in
educational and vocational training projects, agriculture and rural community
development and industry start-up and propagation and will put this core
background experience to good use in establishing and growing the fish
farming project. The other members of the team also have extensive
experience in marketing, logistics and transportation, education and training,
operations, technology, consulting, accounting and management. Members
of the team have held key leadership positions at work, school and in
community organizations.
10.3 Advisory Board
We are in the process of putting together an advisory board that will advise
us on various aspects of running our business.
1. Micro and Macro Economy.
We are trying to seek ongoing assistance in the macro-economic aspects of

running 1this fish farm enterprise by including macro-economic experts on
our advisory board. We are also planning to seek the advice of a pricing and
micro-economic expert.
2. Strategic Local Alliances.
To get help from local organizations that might be engaged in similar pursuits
LAKE LAND PROPERTIES is reaching out to the Ministry of Agriculture,
Animal Industry and Fisheries (MAAIF). LAKE LAND PROPERTIES plans to
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obtain raw materials and other accessories for the fish farm locally that will
help it to reduce the costs of production.
3. Entrepreneurship and Investment Management.
We might also seek advice from certain leading entrepreneurs and

investment managers who in Uganda who are active in the field of fish
farming and marketing and would therefore provide us with useful adjunct
tips and advice on fish farming.
4. Technical Expertise and Continuing Education.
LAKE LAND PROPERTIES is actively communicating with experts who have

designed fish ponds in Uganda that are suitable for medium to large scale
farms that can be maintained by 2-3 full time personnel or 4-6 people
working on a part time basis.
LAKE LAND PROPERTIES plans to hire consultants/engineers from the local

universities that can help in the servicing, disease control and other day to
day to requirements of our business.
Some of the universities in Uganda produce graduates trained in aqua-

culture who can be hired as consultants for our business. The core team will
be able to handle all the day to day financial, operational and marketing
aspects of the business.
LAKE LAND PROPERTIES also plans to contact local universities and

arrange training seminars for people that want to do business with us. This
will also act as a source of advertising for our business and also help in
getting advice from the local faculties on various aspects of the business.
10.4 Personnel Requirement
Commercial fish farming involves the rearing of local Nile tilapia

(Oreochromis niloticus) and North African catfish (Clarius gariepinus) species
that may sometimes be highly sensitive to environmental changes, feeding
patterns and diseases. Hence, its management requires highly skilled and
experienced personnel.
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The farm will need to be a fully automated and integrated farm. Hence, there
would not be need for too many staff. In this sense, the farm will require the
following personnel:
The Managing Director (1)
The promoter will assume the overall supervisory responsibilities as the

Managing Director, carrying out (With the assistance of the key personnel),
the function of the strategic policy formulation. He will draw a monthly salary
and allowance for performing this function.
Cage Attendants (4) Holders of Secondary School Certificate
Hatchery Attendants (6) Holders of Secondary School Certificate
Security Men (1) Relevant guards training
Driver(s) ( 1) Holders of Ugandan professional driving

license
10.5 Estimated Personnel Costs
The total estimated annual salary and allowance for the seven staff and the
Managing Director is UG. Shs. 69,700,000.00. If it is assumed that the salary
would increase by 10% per annum, then the salary for the next 4 years is as
follows:
 UG Shs 69,700,000.00--------Project Year 1

10.6 Organization Structure
Initially, the LAKE LAND PROPERTIES fish farm will maintain a lean
structure in the first five years of its operation, during which it would enjoy
full automation and the services of six staff. However, as the LAKE LAND
PROPERTIES fish farm expands, in the nearest future, it will be imperative
to put in place, a very good structure. Hence, the following structure is
recommended.
The Managing Director will be responsible for the marketing and public
relations for the first 3 years of project inception and early development in
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order to keep a minimal payroll. The Farm Manager will be responsible for
all the recruitment and other Human Resource management matters on the
farm.
The LAKE LAND PROPERTIES fish farm will be structured into two
departments (i.e. Hatchery and Grow Out). The heads of these departments
will report to the General Manager, who will serve as the overall Farm
Manager of the integrated fish farm. He will report to the Chairman /
Managing Director.
Production Supervisor – Hatchery Unit, who will supervise the hatchery

operations of the farm, will head the Hatchery Unit. He will be assisted by
two Production Assistants, while the field work will be done the six
Hatchery Attendants.
Production Supervisor – Grow Out Unit will supervise the grow out
operations at the farm; will head the Grow Out Unit. The Production
Supervisor will head a field team of four Cage Attendants.
There will be a Farm Accountant who will be directly responsible for the
farm’s accounts and financial matters regarding purchases, sales receipts,
banking and accounts, and financial administrative procedures.
Figure 4: Proposed Organizational Structure

Managing
Director/CEO
Farm Manager
(FM)
Production
Accountant
Production Supervisor –
Supervisor - Grow Out
Hatchery
Production
Assistants (2)
Cage Attendants
Hatchery
Driver (1) Security (1) (4)
Attendants (6)
10.7 Brief Profiles and Responsibilities of Top Farm Management
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(a) MR. DAVID MUSIIME TEL NO. +256776744922
He is the Managing Director, a graduate, worked with Civil Aviation Authority

(CAA) and Electoral Commission (EC) at management level.
(b) Mr. KAKURU J.B. TEL NO.

+256776320148
He is the Farm Manager, worked with the ministry of Agriculture

(MAAIF/Fisheries Training Institute) as Senior Technician, USAID/ Fish Project
as Trainer and Field Assistant and WAFICOS as a Co-coordinator and Technical
Advisor.
(c) MR. MPAMIZO IAN TEL NO. +256776849595
He will be employed as the Accountant, a graduate who worked with the

Ministry of Agriculture (MAAIF/FTI) as a Bursar.
(d) MR. NYAKANA ROBERT TEL NO.

+256779550654
He is the Production Supervisor for Grow-Out, he holds a diploma in Fisheries

and worked with Namayenje as a Cage Expert.
OTHERS ARE:
NAME CONTACT QUALIICATIONS PROPOSED FORMER FORMER

EMPLOYMEN EMPLOYER EMPLOYMENT
T
AMON +256782090 DIPLOMA PRODUCTION SON HATCHERY
AGABA 694 SUPERVISOR- ASSISTANT
HATCHERY MANAGER
HILDAT +256704638 CERTIFICATE PRODUCTION FTI DEMO. HATCHERY
JOVINDA 947 ASSISTANT- FARM ASSISTANT
HATCHERY
HIGENYI +256784432 CERTIFICATE PRODUCTION GARUGA HATCHERY
BENARD 353 ASSISTANT- FISH FARM ASSISTANT
HATCHERY MANAGER
10.8 Manpower Structure and Emolument
Details of manpower together with monthly wages and annual payments are
shown in Table 15 below.
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Table 15: Manpower Requirement and Labour Cost
S. Job Title Requir Monthly Annual
No. ed No. Salary Salary
(USHS) (USHS)
A. Managerial/Skilled
1 Managing Director 1 1,500,000 18,000,000
2 Farm Manager 1 1,000,000 12,000,000
3 Production Supervisor – 1
Hatchery 800,000 9,600,000
4 Production Supervisor – 1
Grow Out 800,000 9,600,000
5 Accountant 1 708,000 8,496,000
6 Production Assistants 2 500,000 12,000,000
Sub-Total 7 5,808,000 69,696,000
B. Labour/Semi-
Skilled
7 Hatchery Attendants 6 200,000 14,400,000
8 Cage Attendants 4 200,000 9,600,000
10 Driver 1 300,000 3,600,000
11 Security 1 200,000 2,400,000
Sub-Total 12 2,500,000 30,000,000
TOTAL 19 99,696,000
10.9 Working Schedule
The farm employees will operate as a team headed and supervised by the
Farm Manager under the overall supervision and management of guided by
the Managing Director to draw work schedules for hatchery and grow-out. All
salaries to all employees will be on monthly basis. The salary for all
employees will remain unchanged for the first 3 years and the Board would
decide on the relevant increments thereafter.
Accommodation, medical care on job and lunch are some of the employment
benefits the farm will be offering to its staff.
11.0 PLAN OF OPERATION
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11.1 Overview
The LAKE LAND PROPERTIES fish farming project proposes to use the
following operational plan for a successful and productive output of the
enterprise:
1) Stagger pond stocking to allow one pond to be harvested per month, to

maintain cash flow.
2) Manage to maintain low feed conversions and best management
practices.
3) Plan to purchase fingerlings and stock ponds every month to assure
regular monthly harvests.
4) Maintain proper storage of fish feeds without pests and moisture.
5) Practice proper sanitation programme of sterilizing tanks and liming
ponds before restocking.
11.2 Production Strategies (Technical Issues)
Two production strategies will be applied.
1. Establish a Hatchery to produce enough fry seeds in the first year and
surplus for sale starting in the second year.
2. Stock fry seed in cages, raise them to market size of 500gm.
11.2.1 Hatchery
There will be two phases of fish fry production.
First Phase: production of fry and sex-reverse it in happas and ponds

(production and primary nursing 0.5g)
Second Phase: raise the sex reversed fry from 0.5gm in ponds ready for
cage stocking (secondary nursing): The number required is 10,000 fry per
stocking.
In the first year, there will be a monthly production of 2,500 fry from 166
parents. The survival from primary to secondary nursing is expected to be at
40%.
Total number of broodstock (parents) required will be 1,200 for the 3-year
start-up and planning horizon.
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The parents will be sexed in the ratio of 1:3 male to female to make a pair.
Stocking and production will be based on pairs. The stocking density will be 1
pair/3m² with an expected production of 600 fry/pair.
Parents will be collected from the wild and reputable farms to have quality
off–springs. Ponds will be used for fry production and secondary nursing
while happas will be used for primary nursing. Ponds required are twelve of
average size 500m² with a harvesting basin.
Happas required are ten of 6m² and the stocking density of fry will be
400/m³.
MT hormone will be used for sex reversal, mixed in feeds and administered
orally. Best management practices for water management, fish handling,
harvesting, feeding and record keeping will be adhered to in both grow out
and hatchery to meet the planned targets.
In the first year of production, no fry sales are planned as all resources and
management will be concentrated on grow-out.
Starting from the second year, monthly production of 100,000 fry of 1gm is
targeted for the market. The success of our marketing strategy for fish fry in
the second year will determine the extent of our expansion in the
subsequent years.
11.2.2 Grow-Out
The production objective of market size fish is to stock and raise fry from 50g
to market size of 500g to achieve annual production of 120 tonnes of tilapia
in cages. The size and carrying capacity of the cages will be 20m³
To keep market share, we project a monthly production of 10 tons. Two cages

will be required to produce this volume every cycle. Twelve cages are
required; meaning every month two cages are to be harvested, prepared and
restocked. The expected culture period will be six months meaning every
cage will be used twice a year.
Expected stocking density/carrying capacity will be 25kg/m³; two extra cages

will be required to hold fish during marketing. UGACHICK feeds of 25% CP +
TSP fertilizer will be used in B/stock/Parents ponds; 35% CP will be used in
cages (grow-out) with expected FCR of 2; while 40% CP will be used in
primary nursing.
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Fish is expected to be fed 3% of their body weight per day in cages while
B/Stock and fry will depend on natural feed generated by use of TSP
Fertilizer. Only 40% of compound feed will be supplemented.
12.0 INPUT REQUIREMENTS
12.1 Land and Fish Farm Infrastructure Requirement
Table 16.1: Land and Fish Farm Infrastructure Details

Description – Land and Units Unit Cost Total Cost
Farm Infrastructure (UG Shs) (UG Shs)
Land on lakeshore 30 Acres 3,333,333 100,000,000
Site clearing 1,000,000
Pond construction 25,000,000
Road works 5,000,000
Buildings (offices, labour line,
stores. Etc.) 50,000,000
Cage platform 6,000,000
Total 187,000,000
12.2 Fish Farm Equipment and Tools Requirement
Table 16.2: Fish Farm Equipment and Tools Details

.Description – Fish Farm Units Unit Cost Total Cost
Equipment and Tools (UG Shs) (UG Shs)
Cages & covers 4,500,000
Boats 4 500,000 2,000,000
Water Test kit 1,500,000
DO Meter 1 1,800,000 1,800,000
Demand Feeders 6,500,000
Seines 1,000,000
Weighing Scales 3 500,000 1,500,000
Fish buckets and tubs 200,000
Fish transport tanks 3 500,000 1,500,000
Oxygen cylinder & accessories 200,000
Farm Vehicle 1 30,000,000 30,000,000
Office Equipment 200,000
Solar Equipment 4,000,000
Farm implements (hoes, 6,000,000
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spades. Wheelbarrows, etc.)
Happas 1,800,000
Waders 1,800,000
Fish grades 400,000
Scoop nets & castnets 600,000
Generator 1 600,000 600,000
On-farm feed processing 1 50,000,000 50,000,000
machine
Total 116,300,000
12.3 Fish Farm Start-up Costs
Table 16.3: Farm Start-up Costs (First Year)

Description – Fish Farm Units Unit Cost Total Cost
Start-Up Costs (UG Shs) (UG Shs)
Professional & Insurance Fees 6,350,000
Licenses 550,000
Salaries & Wages 69,700,000
Maintenance of Vehicle & 3,000,00
Equipment
Marketing Costs 62,400,000
Feeds and Hormones 120,000,000
Broodstock 6,000,000
Administration 30,000,000
Pump & Genset Fuel 3,500,000
Pre-Operating Costs 12,000,000
Total 313,500,000
12.4 Furniture and Fixture Requirement
Table 16.4: Furniture and Fixture Details

Description Total Cost (UG
Shs)
Office Equipment 3,000,000
Furniture and Fixtures 10,000,000
Total 13,000,000
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13.0 PROJECT ECONOMICS
13.1 Total Capital Requirement
Table 17.1: Total Capital Requirements

Capital Investment UG Shs In USD In Actual
Actual
Land (30 hectares) – available 100,000,000 40,000
Fish Farm Infrastructure 87,000,000 34,800
Fish Farm Equipment & Tools 116,300,000 46,250
Fish Farm Start-up Costs 301,500,000 120,600
Cash Investment 5,000,000 2,000
Furniture and fixtures 3,000,000 1,200
Office equipment 10,000,000 4,000
Pre-Operating Cost 12,000,000 4,800
Total Capital Costs 634,800,000 253,920
Working Capital UG Shs In USD In Actual

Actual
Equipment spare part inventory 8,800,000 3,520
Raw material inventory 16,200,000 6,480
Cash 50,000,000 20,000
Total Working Capital 75,000,000 30,000
Total Investment 709,800,000 283,920
13.2 Capital Structure of the Project
Table 17.2: Project Financing

Initial Financing UG Shs In USD In %age
Actual Actual
Equity (Land + 109,800,000 43,920 15.47%
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Cash)
Debt 600,000,000 240,000 84.53%
Total Investment 709,800,000 283,920 100.00%
14.0 PROJECT FINANCIAL ANALYSIS
We want to finance growth through a combination of long-term debt and

cash flow. Construction of fish farm infrastructure and purchase of fish farm
equipment and tools will require approximately eighty five percent debt
financing. Additional farm improvements and farm technology will be
primarily financed with cash-flow. Inventory turnover must remain at or
above 1.7 or we run the risk of backing up orders and jeopardizing our
freshness guarantees. We expect no problems with accounts receivable and
we expect to maintain our collection days at 30 with thirty percent of sales
on credit.
The financial projections for LAKE LAND PROPERTIES are presented in the
table and charts of the following sub-topics:
14.1 Key Assumptions
The financial plan depends on a number of important assumptions most of

which are illustrated in Table 13 of Schedule 01: KEY ASSUMPTIONS.
14.2 Break-even Analysis
The LAKE LAND PROPERTIES Break-even Analysis figures are linked to the
main financial analysis spreadsheets (i.e. Schedules 01-14) that are
appended to this Business Plan.
To determine the Break – even point for this Tilapia fish farm, we use the
formula:
BEP = p (f/p - v)
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Where, p = average unit sales price in the highest year of sales (i.e. Project
Year 5).
= USHS 1,277,760,000 = USHS 8,000.00/unit

159,720 units
f = fixed costs in Year 5 = USHS 279,177,250
v = Unit variable cost in Year 5
=USHS 234,565,857 = USHS 1,468.61/unit

159,720 units
Therefore BEP = 279,177,250 = 42,744 units

8,000.00 – 1,468.61
Or, in terms of Uganda shilling value,
BEP = 42,744 x USHS 8,000 = USHS 341,952,000
Alternatively, the break-even point will be reached at a capacity utilization of:

BEP= 279,177,250 = 26.76%
1,277,760,000 – 234,565,857
14.3 Introduction
For the purposes of this Business Plan we have assumed a loan of UG. Shs
600,000,000 is made available to the business.
This loan financing package will be procured from a development institution

as a medium-term credit facility with loan tenure of five years.
The business plan tests the viability/profitability of the project against an

interest rate of 15.00%. Repayment will commence in Project Year (PY) 2.
The loan will cover the cost of purchasing and installing fish farm
infrastructure, acquisition of a range of fish farm tools and equipment,
purchase of a farm transportation vehicle, acquisition of office furniture and
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fixture, financing fish farm start-up costs and pre-operational expenses and
working capital plus other incidental expenses on account.
An exchange rate of UG Shs. 2,500 to USD 1 has been used for purposes of
this document.
14.4 Fish Stock and Throughput
The financial model has considered a straight-line Tilapia fish output

operation with a target of 120 metric tonnes per annum in the first year of
sale (Project Year 2) that gradually rises to 159.72 metric tonnes of fish in
the fourth year of business (Project year 5). The financial model however
assumes that there are no fish farm output wastages and that all the entire
projected Tilapia fish farm outputs are sold out on the market by LAKE
LAND PROPERTIES for the entire five year financial analysis period.
14.5 Project Investment Cost and Financing Plan
The sequestration of the Tialpai fish production farm project finances by

investment category and source are comprehensively detailed in Schedules
02/1 and 02/2. Table 18 below summarises the estimated project costs and
financing plan respectively.
Table 18: Investment Schedule of the Tilapia Fish Production Farm
No Investment Item Project Finance (USHS)
. TOTAL
Promoter’s Medium Term
(USHS)
Input Loan
(Equity)
A Existing Farm Investment
1 Land 100,000,000 0 100,000,000

2 Cash at Hand 9,800,000 0 9,800,000
Sub-Total 109,800,000 0 109,800,00
0
B Planned Farm Investment
10 Fish Farm Infrastructure 0 87,000,000 87,000,000
11 Fish Farm Equipment & Tools 0 116,300,000 116,300,000
12 Fish Farm Start-up Costs 0 296,700,000 296,700,000
13 Furniture and fixtures 0 3,000,000 3,000,000
14 Office equipment 0 10,000,000 10,000,000
15 Pre-Operating Cost 0 12,000,000 12,000,000
16 Working Capital 0 75,000,000 75,000,000
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Sub-Total 0 600,000,000 600,000,00
0
Total Financing
%age of Total Financing 15.47% 84.53% 100.00%
The medium-term loans will be secured by taking a first legal charge on

a range of fish farm equipment and tools and infrastructure assets that will
be purchased and installed for use by the Tilapia fish farm production
enterprise. The project promoters of LAKE LAND PROPERTIES are also
quite ready and willing to provide additional loan collateral in form high value
property assets that can sufficiently secure the UG Shs. 600 million
medium term credit facilities being solicited for this purpose.
14.6 Cost of Goods Sold
The cost of goods sold (COGS) for this Tilapia fish farm enterprise include the
direct variable expenses like the recurrent purchase of fish feeds and
hormones, purchase brood stock for restocking and regular payments for
field labour and security of the farm. These are calculated as part of working
capital estimation and are reflected in Schedule 04/2.
14.7 Financial Performance
Income for the LAKE LAND PROPERTIES is realized from the direct
marketing and sales of fresh Tilapia fish on the market. Net Income has been
calculated by taking into account all the operational cost and gross income
for the sample units.
The stabilized average income realized by the Tilapia fish production

enterprise is presented in Schedule 09.
Summarised income and expenditure forecasts have been compiled and are
set out in Schedules 04, 09, 10 and 11 respectively. These projected
financial figures are based on the assumption that the Tilapia fish production
farm is established and operating effectively.
Taxation has been provided at the company rate of 30%.
14.8 Basis of Preparation
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The generation of cash is crucial in sustaining any business, but for the
purposes of this Business Plan the forecast profit and loss account have been
prepared on the cash basis of accounting.
For the purposes of illustration all receipts and payments have been reflected
on a “cash” basis.
14.9 The Vehicle
As a small but highly promising aquaculture enterprise, it is imperative that

the Tilapia fish production farm employs the most transparent, ethical and
responsible Farm Manager to run the business.
To this end, we would suggest the following governance mechanisms: -
A small but efficient Board of Directors be instituted to guide and control the
company. Only people who have the necessary time to devote to the
business should be considered.
Sound accounting and internal controls to be followed.
By running a business through a company the most efficient tax mechanism
can be planned and staff can be remunerated and employed on an
incentives-driven basis.
14.10 The Accounting System and Financial Control
An upmarket software accounting package will be acquired in order that the

financial condition of the business can be regularly monitored.
We see control over expenditure as a most important issue. The following

methods of achieving sound financial control will be implemented.
Annual operating budget to be approved.
Monthly management accounts to be prepared on a timely basis and any

capital expenditure and all major running expenditures will have to be
approved by the Board.
Audit shall by a reputable firm of auditors with expertise in the industry that
can offer business solutions.
14.11 Security
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In order to safeguard the assets of the LAKE LAND PROPERTIES security
measures shall include: -
Security (perimeter) fencing around the Tilapia fish production farm.
Security guards will be hired.
Stock taking of assets will be carried out on a regular basis.
Equipment will be insured.
14.12 Summary and Results
Research indicates that the potential market for fresh farmed Tilapia fish in
Uganda and EU is substantial; especially in the urban areas where there are
large populations of people employed in the services and trade sectors in
need of constant supplies of fresh water animal protein that is less toxic than
beef – and this is where the major focus and drive of LAKE LAND
PROPERTIES will be: to consistently produce a diverse range and volume of
Tilapia fish products for supply to Ugandan fish processors and exporters who
have quite a high market demand for fresh water fish products in European
and other overseas markets.
14.12.1 Working Capital Provisions

Working capital provisions have been computed basing on assumptions
shown in Schedules 04/1 and 04/2. The result shows that the Net
Working Capital builds up from USHS 84,675,750 in the first year of
operation (Project Year 2) to USHS 122,559,319 by the fourth year of
operation (Project Year 5). This increase in working capital reflects the steady
growth character of the Tilapia fish production project as it’s able to access
the market fast and gain the confidence of the market. For more details -
Schedules 04/1 and 04/2 refer.
14.12.2 Profitability
On a yearly basis, the Tilapia fish production enterprise is profitable from the
first year. Although the investment outlay is relatively high (USHS
709,800,000) for a farm holding of its size, it is profitable. This is shown by:
An Internal Rate of Return (IRR) after tax of 77.69%.
A Net Present Value (NPV) of USHS 577,077,520 at a discount factor of

17%.
The company is shown to have an average gross profit margin of 81.55%
between the first year of the project (Project Year 2) and the fourth year
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(Project Year 5). The operating effectiveness of the enterprise is reflected in
the four-year operational period operating margin that averages at 56.20%
- Schedule 11 refers.
14.12.3 Liquidity
The Tilapia fish production project will require a medium-term credit financial
injection in the year of investment (i.e. First Year of Project) to procure capital
equipment and other essential fish farm operational inputs that the company
cannot currently finance out of its cash flows.
Basing on the forecast attainable levels of the Tilapia fish production

enterprise’s operational output, the project is shown to generate a strong
cash flow position that starts out from a deficit financial position of USHS
17,639,615 in the first year of operation (Project Year 2) to post a very
strong and healthy surplus cash flow return of USHS 388,240,075 by the
fourth year of operation (i.e. Project Year 5) – Schedule 09 refers.
The company is thus able to comfortably cover its medium-term debt

obligations right from the first year of operations. The Debt Service
Coverage Ratio is 2.647 in Project Year 5 (project end-point) and the
Times Earned Ratio is 26.29 – Schedule 13 refers.
14.12.4 Leverage
The project has a sound capital structure with a debt to net worth ratio in
the first year (i.e. Project Year 2) of the project of 0.745 that steadily reduces
to 0.121 by the fourth year (i.e. Project Year 5) of the project when
practically all the principal debt and interests shall have been fully
discharged. The loan is therefore adequately secured and there shall be no
recourse to additional collateral or security provisions – Schedule 13
refers.
14.13 Sensitivity Analysis
The assumptions on which the financial projections are based reflect current
conditions. A Sensitivity Analysis of the project has, however, been carried
out to examine the impact of possible changes in critical variables on the
company’s performance. The results of the sensitivity analysis are presented
in Table 19 below.
Table 19: Project Sensitivity Analysis Results
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DSCR
Chan IRR ROE PY 1 PY 2 PY 3 PY 4
ge
Sensitivity Case
Base Case 77.69 43.60 0.857 1.246 1.83 2.647

% %
Selling Prices -10% 60.97 53.62 0.647 0.965 1.45 2.129
% %
Operating Costs +10% 73.30 42.76 0.796 1.171 1.739 2.534
% %
Cost of Goods +10% 74.62 42.97 0.818 1.194 1.76 2.552
Sold % %
The sensitivity analysis above shows that the Tilapia fish farm project is
most sensitive to changes in unit selling prices (decline by 10%). However,
given the high demand for fresh water fish supplies both within the domestic
and international markets and the declining supply from the natural water
bodies that is now being increasingly supplemented by pond farmed fresh
water fish products, it is expected that prices will continue on an upward
incremental curve for quite some time in the foreseeable future without any
unexpected contractions caused by market shocks. The predicted stability
(and the even possible increase) in fish market prices should be able to
guarantee the commercial viability of this Tilapia fish farm project enabling it
to meet its financial commitments and continuing to provide an acceptable
return to the investors.
15.0 PROJECT IMPLEMENTATION PLAN
It is expected that it will take approximately 12 months from the day funds
are secured for project implementation to enable this aquaculture project by
LAKE LAND PROPERTIES complete its establishment processes, grow
Tilapia fish to marketable size and put them out to market for sale. Figure 5
below summarizes the Project Implementation schedule over a 1 year
timeline.
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67
LLP TILAPIA CAGE FISH FARM Business Plan Corporate Document
Figure 5: PROJECT IMPLEMENTATION SCHEDULE
ACTIVITY Duratio Period in Months
n
Months 1 2 3 4 5 6 7 8 9 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4
Acquisition of Project Funds
Site clearance and
development
Pond Construction and
Infrastructure Development
Acquisition of Farm
Equipment/Tools
Arrangements for Fish Farm
Supplies
Build-up of administration,
recruitment and training of
staff/labour
Arrangements for marketing
Commissioning of Fish Farm
Commencement of S H I S
Commercial Operations
Legend:
S Stocking
H Harvesting
Production Interval
I
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16.0 ENVIRONMENTAL CONSIDERATIONS
The construction of the LAKE LAND PROPERTIES fish farm will be

subjected to environmental review as it has a Category B classification
according to the World Bank/IFC Environmental, Health and Safety
Guidelines. Planning approval by the Ministry of Agriculture, Animal
Industry and Fisheries (MAAIF) for the construction of the fish farm has
already been granted with the issuance of a Permit to LAKE LAND
PROPERTIES to proceed with the project. There are no local objections to
this development from the neighbouring communities resident around Lake
Kachira.
The attached Annex 3 on Environmental, Health and Safety Guidelines

for Aquaculture outlines the primary issues in the industry and measures
and recommendations for their management and mitigation. The specific
EHS (Environmental, Health and Safety) issues associated with aquaculture
projects of this nature primarily include:
 Threats to biodiversity
 Contamination of aquatic systems
 Hazardous Materials
Please refer to Annex 3: Environmental, Health and Safety Guidelines

for Aquaculture for more details.
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17.0 RISK ASSESSMENT & CONTINGENCY PLAN
Risk assessments have already been mentioned in this business plan and the
following table summarizes the important challenges and our mitigation
approaches.
Table 20: Risk Assessment and Mitigation
RISK MITIGATING FACTORS
Organic fish  Thoroughly tested organic fish production methods and systems
production fails  Expert technical assistance available
through pests,  To anticipate losses, yield assumptions are conservative
natural causes,
 Ongoing research experiments to ensure new learning
and or other
unforeseen
circumstances
Low Sales  Regular customer feedback.
 Diversified product mix.
 Proven demand for products.
 Diversity of markets.
 Options to reduce expenses, if necessary.
High operating  Diversity of markets increase direct sales and improve margins.
costs, low margins  Source lower cost local supplies, e.g., food-waste-based fish
feeds.
Difficulty in  Grow committed farm workers from within the LAKE LAND
attracting suitable PROPERTIES system and expose early to other benefits – trips
staff to conferences, site visits.
 Seen at the moment as doing cutting edge work so we are in
high demand.
Operational  Thoroughly tested system.
problems, poor  Technical assistance available to investigate unforeseen fish
fish quality, farm failures.
delivery time  LAKE LAND PROPERTIES system reinforces importance of
product quality, assessment and feedback given to fish farm
staff three days per week.
Marketing  Diversity of end markets
problems,  Strive and aspire to achieve certified organic production status
regulatory  Conduct special classes to teach safe fish harvest and handling
barriers and costs strategies
Departure of key  Inherent to LAKE LAND PROPERTIES system is the training,
project employees empowerment and employment of company staff.
 LAKE LAND PROPERTIES Board will create a succession plan.
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18.0 CONCLUSION AND RECOMMENDATIONS
It can be concluded from the foregoing business analysis and financial

modelling that the proposed full-scale establishment and operation by LAKE
LAND PROPERTIES at Lake Kachira in South Western Uganda to grow and
sell live Tilapia fish in Uganda is extremely viable from a financial and
commercial point of view; and it is further recommended that an early
decision to facilitate it with the requisite credit financing package be
expedited such that implementation of the project follows the fastest track
possible for the benefit of the project promoters, the fish sub-sector, the
world tropical fish market, and the Ugandan economy at large.
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Schedule 01: KEY FINANCIAL MODELLING ASSUMPTIONS
Table 21.1: Production Related Assumptions

Production capacity per year (Fish) 40,000
Average weight per fish at sale (kgs) 3
Sales price per kg of fish in Year 1 (UG 6,000
Shs)
Sale price growth rate per annum 10%
Production capacity utilization in first 100%
year
Production capacity utilization growth 10%
rate
Maximum production capacity utilization 100%
Table 21.2: Economic Related Assumptions

Inflation rate 10%
Wage growth rate 10%
Electricity Growth rate 10%
Table 21.3: Financing Assumptions

Interest rate on medium-term debt 15%
Required return on equity 20%
WACC 19%
Debt UShs. 600 million
Equity UShs. 105 million
Debt tenure (Years) 5
Grace Period (Years) 1
Debt Payments per Year 1
Table 21.4: Operating Expense Assumptions

Utilities expense UShs. 1 million/month
Maintenance & Repair expense UShs. 250,000/month
Marketing expense UShs. 5.2 million/month
Pump & Genset Fuel expense 0.00486% of sales revenue
Administration Expense 0.0472% of sales revenue
Miscellaneous expense UShs. 1 million/month
Table 21.5: Depreciation Rates

Building and infrastructure 5%
Furniture and fixtures 5%
Machinery 10%
Office equipment 10%
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Table 21.6: Cash Flow Assumptions

Accounts Receivable Cycle (In Days) 30
Accounts Payable Cycle (In Days) 30
Initial cash on hand 50,000,000
Pre-Operating Cost 12,000,000
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Schedule 02/1 INITIAL FIXED INVESTMENT COSTS (USHS.)

No. of Unit Cost Total Cost
Item Units (USHS.) (USHS.)
A. LAND
30
1. Land on lakeshore Acres 3,333,333 100,000,000
Sub Total 100,000,000
B. FISH FARM ESTABLISHMENT
1. Site clearing 1,000,000
2. Pond Construction 25,000,000
3. Road works 5,000,000
4. Building (offices, labour line, stores, etc.) 50,000,000
5. Cage platform 6,000,000
Sub Total 87,000,000
C. FISH FARM EQUIPMENT AND TOOLS
1. Cages & covers 4,500,000
2. Boats 4 500,000 2,000,000
3. Water test kit 1,500,000
4. DO Meter 1 1,800,000 1,800,000
5. Demand Feeders 6,500,000
6. Seines 1,000,000
7. Weighing Scales 3 500,000 1,500,000
8. Fish buckets and tubs 200,000
9. Fish transport tanks 3 500,000 1,500,000
10. Oxygen cylinder & accessories 200,000
11. Farm vehicle 1 30,000,000 30,000,000
12. Office Equipment 200,000
13. Solar Equipment 4,000,000
14. Farm implements (hoes, spades, wheelbarrows,
etc.) 6,000,000
15. Happas 1,800,000
16. Waders 1,800,000
17. Fish grades 800,000
18. Scoop nets & castnets 400,000
19. Generator 1 600,000 600,000
20. On-farm feed processing machine 1 50,000,000 50,000,000
Sub Total 116,300,000
D. FISH FARM START-UP COSTS
1. Professional & Insurance Fees 6,350,000
2. Licenses 550,000
3. Salaries & Wages 1 Year 69,700,000
4. Maintenance of Vehicles & Equipment 3,000,000
5. Marketing Costs 62,400,000
6. Feeds and Hormones 120,000,000
7. Broodstock 6,000,000
8. Administration (food, accommodation, medical, etc.) 30,000,000
9. Pump and Genset Fuel 3,500,000
Sub Total 301,500,000
E. SUPPLEMENTARY INVESTMENT
1. Office Equipment 3,000,000
2. Furniture and Fixtures 10,000,000
3. Pre-Operating Costs 12,000,000
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4. Working Capital 75,000,000
Sub Total 100,000,000
TOTAL CAPITAL INVESTMENT 704,800,000
Schedule 02/2 PROJECT COMPONENT EXPENDITURES BY
SOURCE OF FINANCE (USHS.)
A. Equity Finance
Capital Expenditure (Ushs.)

Project Component Units (USHS.) (USHS.)
30 3,333,333/Ac
1. Land on lakeshore Acres re 100,000,000
2. Cash investment (includes 4.8 million
for Broodstock) 9,800,000
109,800,00
TOTAL EQUITY FUNDING 0
As a percentage of Total Capital Investment of UShs. 709.80 million =

15.47%
B. Loan Finance
Capital Expenditure (UShs.)

Project Component Units (USHS.) (USHS.)
1. Fish Farm Establishment 87,000,000
2. Fish Farm Equipment and Tools 116,300,000
3. Fish Farm Start-up Costs (Less by 4.8
million of Broodstock) 296,700,000
4. Supplementary Investment 100,000,000
600,000,00
TOTAL LOAN FUNDING 0
As a percentage of Total Capital Investment of UShs. 709.80 million =

84.53%
Schedule 03. PRE-PRODUCTION CAPITAL EXPENDITURE BY
CATEGORY (USHS.)
Ite Amount
m Pre-Investment Studies (USHS)
1 Pre-investment studies 3,625,000
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2 Preparatory investigations 338,000
3 Management of project implementation 2,375,000
4 Detailed planning & tendering 662,000
Supervision, co-ordination, field test-
5 management
& commencement of farming operations 600,000
6 Build-up of administration, recruitment
training of staff and labour 2,000,000
7 Arrangements for Fish Farm Supplies 400,000
8 Arrangements for marketing 662,000
9 Build-up of connections 400,000
10 Preliminary and capital issue expenditure 938,000
Total 12,000,000
Schedule 04/1: CALCULATION OF WORKING CAPITAL

I. Minimum requirements of current assets and
liabilities.
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(a) Accounts receivable: 30 days at production costs minus depreciation
and interest
(b) Inventory:
Field Inputs: 30 days
Labour Costs: 90 days
Fish Farm Operations: 60 days
Equipment & vehicle maintenance: 180 days
Work in progress: 9 days at fish farm field costs (variable costs) +
labour + depreciation + insurance + farm
overheads (part of operating expenses).
Finished products: 45 days at fish farm field costs (variable costs)
+ labour + depreciation + insurance + farm
overheads (part of operating expenses).
© Cash-in-hand: 15 days, see separate calculations at the
bottom of this schedule
(d) Accounts payable: 30 days of fish farm field costs and utilities.
WIP = 9 days at Variable Costs + Labour + depreciation + insurance

+ fish farm field overheads
Finished Products = 45 days at Variable Costs + Labour +
depreciation + insurance + fish farm field overheads
SCHEDULE 04/2. CALCULATION OF WORKING CAPITAL
II: Annual Production - Cost Estimate (USHS.)
Farm Set
Period Up Full Capacity
Year PY 1 PY 2 PY 3 PY 4
145.20 1
Production Programme 0 120 MT/ 132 MT/ MT/
(Total Fish Output) annum annum annum
Variable/Direct Costs (USHS.)
120,000,0 145,200,00 175,692,00 21
1. Fish Feeds and Hormones 00 0 0
10
2. Broodstock 6,000,000 7,260,000 8,784,600
3. Field labour: pre-harvest 2,000,000 2,420,000 2,928,200 3,
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4. Field Labour: post-harvest 800,000 968,000 1,171,280 1,
5. Security 4,800,000 5,280,000 5,808,000 6,
133,600,0 161,128,0 194,384,0 23
Sub-Total 00 00 80
Operating Expenses/Fixed Costs
(USHS.)
12,000,00 15
1. Utilities 0 13,200,000 14,520,000
69,700,00 92
2. Salaries and Wages 0 76,670,000 84,337,000
12,600,00 16
3. Professional & Insurance Fees 0 13,860,000 15,246,000
4. License Fees 550,000 605,000 665,500
5. Maintenance & Repair 3,000,000 3,300,000 3,630,000 3,
62,400,00 83
6. Marketing 0 68,640,000 75,504,000
7. Pump & Genset Fuel 3,500,000 3,850,000 4,235,000 4,
34,000,00 45
8. Administration expenses 0 37,400,000 41,140,000
12,000,00 15
9. Miscellaneous 0 13,200,000 14,520,000
209,750,0 230,725,0 253,797,5 27
Sub-Total 00 00 00
343,350,0 391,853,0 448,181,5 51
TOTAL OPERATING COSTS 00 00 80
Financial Costs (USHS.)
90,000,00 22
1. Interest 0 67,500,000 45,000,000
12,000,00
2. Bank charges (2% of Loan) 0 0 0
20,130,00 20
3. Annual Depreciation 0 20,130,000 20,130,000
TOTAL FISH FARM
465,480,0 479,483,0 513,311,5 55
PRODUCTION COSTS 00 00 80
Schedule 04/3. CALCULATION OF WORKING CAPITAL: WORKING CAPITAL REQUIR
X Y Requirements (USHS.
Minimum Coefficient
days of Full Capacity
Item of coverage turn-over 2 3 4
I. Current assets
28,612,5 32,654,4 37,348,4
A. Accounts receivable 30 12 00 17 65
B. Inventory
a) Field Inputs 30 12 0 0 0
1,024,87
b) Labour Costs 90 4 700,000 847,000 0
34,458,3 37,904,1 41,694,5
c) Farm Operations 60 6 33 67 83
d) Maintenance & Repair 180 2 1,500,00 1,650,00 1,815,00
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0 0 0
4,158,25 4,877,95 5,744,00
e) Work-in-progress 9 40 0 0 2
20,791,2 24,389,7 28,720,0
f) Finished products 45 8 50 50 10
6,588,75 7,741,25 9,130,27

C. Cash-in-hand 15 24 0 0 5
(from V below)
96,809,0 110,064, 125,477,

D. Current assets _ _ 83 534 205
II. Current Liabilities

- - -
12,133,3 14,527,3 17,408,6
A. Accounts payable 30 12 33 33 73
III. Working Capital

84,675,7 95,537,2 108,068,
A. Net Working Capital 50 01 532
B. Increase in Working 13,255,4 15,412,6
Capital _ 51 71
IV. Total Production Costs _ _
126,000, 152,460, 184,476,

Less: Farm Inputs _ _ 000 000 600
12,000,0 13,200,0 14,520,0
Utilities _ _ 00 00 00
20,130,0 20,130,0 20,130,0
Depreciation _ _ 00 00 00
158,130, 185,790, 219,126,
15 24 000 000 600
6,588,75 7,741,25 9,130,27
V. Required Cash Balance _ _ 0 0 5
SCHEDULE 05: FIXED ASSETS AND DEPRECIATION ALLOWANCES

(USHS.)
Year 1 2 3 4
Initial Dep Dep Dep Dep
Allowanc Allowanc Allowanc Allowanc
Asset Value e e e e
Fish Farm 87,000,0 4,350,00 4,350,00 4,350,00 4,350,00

Infrastructure 00 0 0 0 0
86,300,0 8,630,00 8,630,00 8,630,00 8,630,00

Equipment 00 0 0 0 0
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30,000,0 6,000,00 6,000,00 6,000,00 6,000,00
Vehicle 00 0 0 0 0
3,000,00
Furniture and Fixtures 0 150,000 150,000 150,000 150,000
10,000,0 1,000,00 1,000,00 1,000,00 1,000,00

Office Equipment 00 0 0 0 0
216,300, 20,130, 20,130, 20,130, 20,130,

TOTALS 000 000 000 000 000
Schedule 06: TOTAL INVESTMENT COSTS (USHS.)
Farm
Period Set Up Full Capacity
Year 1 2 3 4 5
Currency (USHS.)
1. Fixed Investment 328,300,

Costs 000 _ _ _ _
a) Initial fixed 316,300,
investment costs 000 _ _ _ _
b) Replacement _ _ _ _ _
2. Pre-operational 12,000,0
capital exp. 00 _ _ _ _
3. Working Capital 96,809, 13,255, 15,412,6 17,960

increase _ 083 451 71 26
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Total Investment 328,300 96,809, 3,553,1 3,932,4 4,272,2
Costs ,000 083 08 00 83
Schedule 07: TOTAL ASSETS (USHS.)
Farm
Period Set Up Full Capacity
Year 1 2 3 4 5
Currency (USHS.
'000s)
1. Fixed Investment 328,300,

Costs 000 _ _ _ _
a) Initial fixed 316,300,
investment costs 000 _ _ _ _
b) Replacement _ _ _ _ _
2. Pre-operational 12,000,0
capital exp. 00 _ _ _ _
3. Current assets 108,942, 15,649,4 18,294,0 21,429,

increase _ 416 51 11 5
Total Investment 328,300 108,942 15,649, 18,294, 21,429

Costs ,000 ,416 451 011 75
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Schedule 08. SOURCES OF FINANCE

(USHS.)
Item Sources of Amount (In

Finance USHS.)
1. Promoters
a) Equity 109,800,000
b) Preference Capital 0
c) Loans _
d) Other forms such as deferred
credits for supply of assets _
Total 109,800,000
2. Medium-Term Loan Facility

a) Equity _
b) Preference Capital 0
c) Medium Term Loan 600,000,000
d) Other forms such as deferred
credits for supply of assets
Total 600,000,000
3. Loans from other

Financial Institutions
a) Equity _
b) Preference Capital _
c) Medium Term Loans 0
d) Additional Set-up Loans _
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Total 0
709,800,00
Total, all items 0
Schedule 09: PROJECTED CASHFLOW TABLE (In

USHS.)
Farm Set
Period Up Full Capacity S
Year PY 1 PY 2 PY 3 PY 4 PY 5 v
Production
Programme 0 120 MT/ 132 MT/ 145.20 MT/ 159.72 MT/ la
(Total Vegetable
Output) annum annum annum annum
Costs (USHS.)
328,300,00 720,000,0 871,200,0 1,059,960,0 1,277,760,0
A. Cash inflow 0 00 00 00 00
1. Financial resources 328,300,00
total 0 _ _ _ _
720,000,0 871,200,0 1,059,960,0 1,277,760,0
2. Sales revenue total _ 00 00 00 00
- - -
328,300,00 737,639,4 707,948,5 - - 3
B. Cash outflow 0 16 51 790,901,117 889,519,925
1. Total assets schedule
- - -
including 328,300,00 108,942,4 15,649,45 3
replacements 0 16 1 -18,294,011 -21,429,750
- -
343,350,0 391,853,0 - -
2. Operating Costs _ 00 00 448,181,580 513,743,107
3. Debt Service
- -
90,000,00 67,500,00
a) Interest _ 0 0 -45,000,000 -22,500,000
- -
150,000,0 150,000,0 - -
b) Repayments _ 00 00 150,000,000 150,000,000
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- -
40,955,00 78,554,10 - -
4. Corporate tax _ 0 0 125,033,526 177,455,068
5. Dividends 4% on
equity _ -4,392,000 -4,392,000 -4,392,000 -4,392,000
-
17,639,41 163,251,4 3
C. Surplus / deficit 0 6 49 269,058,883 388,240,075
D. Cumulative cash
-
17,639,41 145,612,0 3
balance 0 6 33 414,670,916 802,910,991
Salvage values. Land: 100,000,000; 3/4 of farm infrastructure: 65,250,000; Working Capit
143,437,473
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Schedule 10: PROJECTED CASHFLOW TABLE AND CALCULATION OF PRESENT VALUE (In
USHS.)
Year PY 1 PY 2 PY 3 PY 4 PY 5 Salvage Total

Farm Set 145.20 159.72
Up 120 MT/ 132 MT/ MT/ MT/ value in
last
annum annum annum annum year
Investment Costs (Excl.
existing
- -
328,300, 328,300,0
assets) 000 _ _ _ _ 00
95,655,0 183,292, 291,744, 414,061, 984,754,6
Net Profit after Tax _ 00 900 894 825 _ 19
20,130,0 20,130,0 20,130,0 20,130,0 80,520,00
Depreciation _ 00 00 00 00 _ 0
Interest Add back
90,000,0 67,500,0 45,000,0 22,500,0 225,000,0
Mid-term Loan _ 00 00 00 00 _ 00
-
328,300, 205,785, 270,922, 356,874, 456,691, 305,687, 1,267,662,
NET CASH FLOWS 000 000 900 894 825 473 092
Discount Factors at 14% 0.8772 0.7695 0.675 0.5921 0.5194 0.5194 _

-
287,984, 158,351, 182,872, 211,305, 237,205, 158,774, 660,525,1
PV at 14% 760 558 958 625 734 073 87
660,525,1
NPV at 14% 87
Discount Factors at 17% 0.8547 0.7305 0.6244 0.5337 0.4561 0.4561 _
-
280,598, 150,325, 169,164, 190,464, 208,297, 139,424, 577,077,5
PV at 17% 010 943 259 131 141 056 20
577,077,5
NPV at 17% 20
Internal Rate of Return = 77.69%
NPV at 14% = USHS 660,525,187 77.69%
NPV at 17% = USHS 577,077,520
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Schedule 11: PROJECTED INCOME STATEMENT (In USHS.)
Year PY 1 PY 2 PY 3 PY 4
720,000,00 1,059,960,0
Sales _ 0 871,200,000 00
133,600,00
Cost of Goods Sold _ 0 161,128,000 194,384,080
586,400,00
GROSS PROFIT _ 0 710,072,000 865,575,920
Less: Operating Costs

(excl. Cost of Goods 209,750,00
Sold) _ 0 230,725,000 253,797,500
376,650,00
OPERATING PROFIT _ 0 479,347,000 611,778,420
Less: Accrued interest

on
Medium-Term Loans _ 90,000,000 67,500,000 45,000,000
Less: Annual 150,000,00
Repayments _ 0 150,000,000 150,000,000
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NET PROFIT BEFORE 136,650,00

TAX _ 0 261,847,000 416,778,420
Corporation Tax 30% _ 40,995,000 78,554,100 125,033,526
NET PROFIT _ 95,655,000 183,292,900 291,744,894
Accumulated Net Profit

(Loss) _ 95,655,000 278,947,900 570,692,794
Net Profit Margin _ 0.133 0.21 0.275
Gross Profit Margin _ 0.814 0.815 0.817
Rate of Return on
Investment _ 13.48% 25.82% 41.10%
Operating Profit Margin _ 0.523 0.55 0.577
Schedule 12: PROJECTED BALANCE SHEET (USHS.)
CAPITAL EMPLOYED: YR.1 YR.2 YR.3 YR.4

Share Capital 109,800,000 109,800,000 109,800,000
Retained Earnings 95,655,000 278,947,900 570,692,794
Shareholder's 205,455,00
Equity/Deficit 0 388,747,900 680,492,794
Long-Term Liabilities 600,000,000 450,000,000 300,000,000

805,455,00
TOTAL CAPITAL 0 838,747,900 980,492,794
EMPLOYMENT OF
CAPITAL: `
Fish Farm Infrastructure 87,000,000 82,650,000 78,300,000 73,950,000

Equipment 86,300,000 77,670,000 69,040,000 60,410,000
Vehicle 30,000,000 24,000,000 18,000,000 12,000,000
Furniture and Fixtures 3,000,000 2,850,000 2,700,000 2,550,000
Office Equipment 10,000,000 9,000,000 8,000,000 7,000,000
196,170,00
LONG-TERM ASSETS: 0 176,040,000 155,910,000
711,418,33
CURRENT ASSETS: 3 744,735,233 886,991,467
Accounts Receivable 28,612,500 32,654,417 37,348,465

Stock (Inventory) 73,741,166 84,196,200 96,407,138
Bank Balance and Cash 6,588,750 7,741,250 9,130,275
Other Current Assets 602,475,917 620,143,366 744,105,589
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102,133,33
CURRENT LIABILITIES: 3 82,027,333 62,408,673
Accounts Payable 12,133,333 14,527,333 17,408,673
Current Portion of Long-term
Liabilities 90,000,000 67,500,000 45,000,000
609,285,00
NET CURRENT ASSETS: 0 662,707,900 824,582,794
805,455,00
TOTAL CAPITAL 0 838,747,900 980,492,794
907,588,33 1,042,901,46
TOTAL ASSETS 3 920,775,233 7
Schedule 13: KEY BUSINESS
RATIOS
Farm Set
Period Up Full Capacity
Year 1 2 3 4 5
Sales Growth 10% 10%
Percent of Total Assets

Accounts Receivable 3.15% 3.55% 3.58%
Inventory 8.12% 9.14% 9.24%
Other Current Assets 66.38% 67.35% 71.35%
Total Current Assets 78.39% 80.88% 85.05%
Long-term Assets 21.61% 19.12% 14.95%
Total Assets 100.00% 100.00% 100.00%
Current Liabilities 11.25% 8.91% 5.98%
Long-term liabilities 0.00% 0.00% 0.00%
Total Liabilities 11.25% 8.91% 5.98%
Net Worth (Total
Capital) 88.75% 91.09% 94.02%
Percent of Revenues
Revenues 100.00% 100.00% 100.00%
Gross Margin 81.40% 81.50% 81.70%
Management /
Administration 4.72% 4.29% 3.88%
Net Profit (after
Interest & Tax) 13.30% 21.00% 27.50%
Main Ratios
Current 6.97 9.08 14.21
Quick 6.24 8.05 12.67
Total Debt to Total
Assets 66.11% 48.87% 28.77%
Pre-tax Return on Net
Worth 16.97% 31.22% 42.51%
Pre-tax Return on
Assets 15.06% 28.44% 39.96%
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Business Vitality Profile

37,894,73 45,852,63 55,787,36
Revenue per Employee 7 2 8
Schedule 13: KEY BUSINESS RATIOS (cont'd)
Additional Ratios
Net Profit Margin 13.30% 21.00% 27.50%
Return on Equity 46.56% 47.15% 42.87%
Activity Ratios
Accounts Receivable Turnover 2.52 2.67 2.84
Collection Days 30 30 30
Inventory Turnover 1.71 1.81 1.91
Accounts Payable Turnover 1.04 1.05 1.06
Payment Days 30 30 30
Total Assets Turnover 0.79 0.95 1.12
Fixed Assets Turnover 0.64 0.87 1.18
Debt Ratios
Debt to Net Worth 0.745 0.537 0.306
Current Liability to Liability 0.17 0.182 0.208
Debt-Service Coverage Ratio 0.857 1.246 1.83
Liquidity Ratios
95,175,75 108,242,2 123,441,5
Net Working Capital 0 01 82
Interest Coverage [Times
Inte-
rest Earned Ratio - TIE] 1.52 3.88 9.26
Additional Ratios
Assets to Revenue 1.26 1.06 0.98
Current Debt / Total Assets 9.92% 7.33% 4.31%
Acid Test 1.06 1.52 2.29
Sales/Net Worth 0.89 1.04 1.08
Schedule 14: PROJECTED PAYBACK PERIOD (Values are in USHS.)
YEAR/ITEM 2 3 4 5
183,292,90 291,744,8
Net Profit 95,655,000 0 94
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45,000,00
Interest 90,000,000 67,500,000 0
20,130,00
Depreciation 20,130,000 20,130,000 0
205,785,00 270,922,90 356,874,8
"Profit" 0 0 94
Amount Balance
Year paid of
back from total
Investme
"profits" nt
- -
709,800,00 709,800,00
1 0 0
-
205,785,00 504,015,00
2 0 0
-
270,922,90 233,092,10
3 0 0
356,874,89 123,782,79
4 4 4
456,691,82 580,474,61
5 5 9
Pay Back Period = 3.65

YEARS
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Annex 1: Aquaculture Value Chain
The value chain for aquaculture provides employment opportunities in many ways as
shown below. Suppliers of
Fish Seed
Suppliers of
Fish Feeds
Technical
Suppliers of
Assistance
Gear-Nets,
Extension
etc. Holding of Fish and
Feeds for Transport
and Logistics
Smallholder Fish
Production Through
Clusters of Farmers for
Maximized
Competitiveness
Auto
Direct Sales to
Consumption
Consumers
Transport of
Live & Dead
Fish
Live Fish Dead Fish

Markets Markets
Fish Processing,
Drying, Smoking
Consumers
Restaurants
Consumers
92
Annex 2: 10-Year Harvesting Plan
Years 1 2 3 4 5 6 7 8 9 10 11 12
Januar Februa March April May June July Augus Septem Octob Novemb Decemb
y ry t ber er er er
2013 Stockin
g
2014 Harvestin Stockin Harvestin
g g g
2015 Stockin Harvestin Stocking
g g
2016 Harvestin Stockin
g g
g g g
g g
g g
g g g
g g
g g
g g g
Legend:
Fish Production Interval Period (1 month)
93
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Annex 3: Environmental, Health and Safety Guidelines for
Aquaculture
PLEASE PRINT OUT AND ATTACH THE WORLD BANK/IFC

ENVIRONMENTAL, HEALTH AND SAFETY GUIDELINES IN pdf format HERE
95

Business Plan LLP Tilapia Cage Fish Farm

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LLP TILAPIA CAGE FISH FARM Business Plan Corporate

1.2 Purpose of Request

LAKE LAND PROPERTIES projects an annual production output of 120

1.3 Anticipated Impact of the Proposed Activity on the Enterprise

2.0 EXECUTIVE SUMMARY

2.1 Project Description

LAKE LAND PROPERTIES (LLP) is a company registered in 2007 with

It intends to establish a commercial Tilapia Cage Farm and a Fish Fry

According to the Fisheries Sector Strategic Plan 2007, National

The private sector has been always encouraged to take this as an

The farm’s annual production capacity is expected to be 120 metric tons of

The farm projects to repay the loan in 60 months by paying UGX

A competent team of managers and technical personnel will be hired to set-

2.2 Farm Management

The LAKE LAND PROPERTIES fish farming project will be set up as a

 Fingerlings, fry, and live eggs

2.3 Enterprise Management

LAKE LAND PROPERTIES will benefit from an experienced entrepreneurial-

LAKE LAND PROPERTIES will strive to form mutually beneficial

2.5 Production Summary

Production ranges between 1,500 kg per hectare annually for subsistence

2.6 Market Summary

Uganda produces up to 15,000 tonnes of fish from aquaculture, including

2.7 Market Demand

An important factor in the success of this venture is the ability to secure

2.8 Target Market Segments

LAKE LAND PROPERTIES will aim to market its pond/cage-cultured Tilapia

As the business grows in size and product volumes, LAKE LAND

2.9 Marketing Method

2.10 Marketing/Sales Strategy

The LAKE LAND PROPERTIES customer acquisition strategy is composed of

2.11 Economic Impact

2.12 Grant/Loan Request

LAKE LAND PROPERTIES is seeking UShs. 600 million in --------

2.13 Investment Planning

2.14 Project Investment and Financial Estimates

Working Capital UG Shs In USD In Actual

Total Investment 709,800,000 283,920

Table 1.2: Project Financing

3.0 STATEMENT OF OBJECTIVES

 Enterprise budget support. Operate the fish farm as a commercial

 Poverty alleviation. Through the increased and large-scale

 Food security. Fish is an important source of high quality food as well

 Artificial restocking of natural water bodies (replaces or

 Creation of employment opportunities. The LAKE LAND

 Export development. By the production of farmed fish on a

 Rural development. There are going to be knock-on rural

LAKE LAND PROPERTIES seeks to serve a range of fish processors and

3.3 Keys to Success

Our keys to success are:

1. Establishing and maintaining working relationships and contractual

4.0 PROJECT PROFILE

4.1 Project Brief

In recent times the industry has experienced a tremendous growth level as

4.3 Defining the Product

4.4 Raw Material

4.5 Proposed Fish Farm

Globally three techniques are practiced for inland fish farming.

a) Extensive fish farming

Extensive fish farming is a self-sustaining natural production system in which

Intensive fish farming is a technique in which the fish are sustained in

c) Semi intensive fish farming technique

Semi-Intensive farms harvested in ponds and supply with artificial feeds