Sri Lanka Institute 

of Development Administration
 
INDIVIDUAL ASSIGNMENT

 
Programme : Capacity Building Training Programme for SLAS Grade  III - 2012
Batch/ Group – H

Module  : Entrepreneurial Competencies

Assignment : Business Plan Proposal Development

 

R.Vijayakumar
CBP- 111/H/22
0778317443
srvijayam@gmail.com
Wanni Fish Tonic Production
1. Introduction
The Sri Lankan government is restricting and banning the import of fertilizers and agrochemicals
including insecticides and herbicides. The regulation is applicable to the import of goods with
bills of lading/air waybills issued on or after May 6, 2021.

The newly promulgated regulation restricting and banning the import of fertilizers and
agrochemicals is leading to widespread concern among Sri Lanka’s farmer community, industry
associations, practitioners, and agricultural professionals. Sri Lanka H.E President Gotabaya
Rajapaksa claims that by limiting and banning the import of fertilizers and agrochemicals, this
will help rein in rising health care costs brought about by overuse of chemicals in agricultural
production. Concerns with non-communicable diseases (NCD) arising due to use of
agrochemicals in Sri Lanka is highly controversial topic, with cancer becoming a countrywide
concern.

The Sri Lankan government’s Vistas of Prosperity and Splendor Agenda, aiming to improve the
Sri Lankan peoples’ health, seeks to phase out the use of fertilizers and agrochemicals in
domestic crop cultivation. The framework promotes organic agriculture, organic fertilizers,
organic food consumption, and the export of organic food and agricultural products. The
government subsidizes rice production to ensure rice self-sufficiency (a national food security
objective). Heretofore, it was providing local rice farmers with free, imported chemical fertilizer.
For other field crops, the government provides farmers with fertilizers at deeply discounted cost.
1,397,120 Hectare land used for cultivation on 2020 and totally 1,260,053 MT Chemical
Fertilizers imported to feed these lands. Government spent 56 billion Sri Lankan Rs to import
fertilizers on 2021. Around 32% of population depends on Agriculture and it is accounted 8% of
Economic growth.

Tri forces, Land Reformation Commission, local authorities, agriculture department and
Agrarian Departments are encouraging Farmers and Small Industries to produce Organic
Compost to achieve the local products to fulfill the national need. In addition to that, they
promote liquid fertilizer since normal compost will have nitrogen only up to 1 to 2 percentage.
To solve this problem in the region, I proposed to promote Fish Tonic Production in
Vavuniya. This will address the requirement of organic fertilizer with nitrogen and other
necessary requirements. So, people will not focus on chemical and involve in the cultivation
without any issues of fertilizer.

Fish Tonic Production based on the fish waste and jaggery. Those are available in the country.
No need to import anything. Fish fertilizer is an awesome product for promoting plant growth.
It’s high in Nitrogen for growing plants, can be naturally produced, and is an awesome food for
microbes! Fungi love this stuff.

As fish fertilizer improves soil health, it also increases soil fertility by providing the primary
nutrients necessary for plants to thrive. Fish fertilizers offer a source of burn-free nitrogen, along
with the other primary nutrients of phosphorus and potassium. Unlike synthetic options, they
may also provide secondary nutrients, such as calcium, which is found in Alaska dry fertilizers.
Plants that receive a balance of primary and secondary nutrients experience strong and steady
plant growth, leading to vigorous plants that can better withstand disease and pest issues.

Wanni Fish Tonic Production Produce 10 liters per day. Company produce one liter for 300 Rs
Presently. Selling price is 400 Rs. By considering the demand for Organic fertilizers, 100 liters
per day can be prepared and sell in the districts initially. Cost for 100 liters will be 30000 per day
and monthly 900,000.00 rupees. Loan can be obtained from Agrarian Bank of Agrarian Services
Centers.

 It acts as an organic -promoter and immunity booster plans. This also cures already infested
plants and other living organisms.
 It Increases the sugar content and aroma of Fruits.
 It protects the Soil and Water
 It increases the shelf life of vegetables, fruits and other agricultural produce.
 This application makes crops to mature early.
 It reduces water requirement by 25% to 30 % thus sustains drought conditions.
 It gives all required nitrogen, potassium and phosphorus and other elements.
 It produces larger leaves and denser canopy
 It has very positive effect on animal health and human health.
 It prevent any heavy metals and ensure healthy and safe food
Preparation cost or production cost of Fish Tonic depends on current cost of collecting inputs
such as fish waste and cost of inputs used in the products like jaggery. if you are planning to buy
through online, it may cost thousand rupees based on brand and quality. As making this at home
is very simple, it is better to prepare on your own for commercial crops. however, Wanni Fish
Tonic is plan to sale Fish Tonic on adequate rate to consider socio economic condition rather
than consider profit.

2. Company Description, Business and management structure

Wanni Fish Tonic production company located in Vavuniya district. Fish Tonic is prepared by
the company which is un registered and functioning small scale level in Vavuniya town. It
provides solutions to home garden at presently. We collect our inputs from local market in
Vavuniya town. Potential is there to collect from other whole sale and retail shops in Vavuniya
area which are disposed by Urban Council presently. So, this will be collected by our company
hereafter.

The company was established by Mr. Andrew who has completed agriculture field assistant of
NVQ 3. He is involving in the farming activities. In addition

Marketing and promotions will emphasize reputation for quality and customer service. The
future of Wanni Fish Tonic is looking bright with local customers in Vavuniya and farmers to
give solution for their agricultural and animal products. we will increase sales with the addition
of new energy and enthusiasm from all staff and motivated farmers in the district.

3. Objectives

Wanni Fish Tonic Production company focus on following objectives to develop the business
further by analyzing the SWOT.

 To identify the necessary inputs for the Fish Tonic Production

 To seek the stable market by considering the SWOT and risks & assumption
 To Produce Quality Fish Tonic Liquid Fertilizer in large scale
  To Increase the income of the company and promote it as registered and reputed
company
 To provide the path way to produce safety and health food\

4. Product and Service

Present product is the Fish Tonic in the small scale which is 10 liter per day and the selling price
is 400 rupees. Target to produce 100 Liters per day and the selling price will be same. No any
product will be produced. Focusing only on Fish Tonic Liquid Fertilizer which will function as
the all in all solution such fertilizer, pesticides, fungicides etc. The Fish Tonic Fertilizer contains
Nitrogen of 5% percentage, Phospurus of 2% and Potassium of 5 percentage and organic matter
20 percentage. 7 liters required for one acre of cultivation. Yearly 5100 acre will be benefitted
due to this product.

Our product can be used for paddy, all grains, all vegetables and fruits which means all crops can
be benefitted as shown followingly. Paddy, Black gram, Green gram, Cowpea, Groundnut, Okra,
sesame, Moringa/ Drumstick, Sunflower, Tomato vegetable, Onion, Rose Flower etc.

This should apply as described in the following manner. 20 ml Fish Tonic mix with 1 litre of
water. It should apply for the crops every 7 days interval. Application can be started after 10
days of crop cultivated date.

Storage of seeds : in this process 3% of Fish Tonic solution should be used to dip the seeds
before drying and storing them for long shelf life, vigour and more percentage of germination.

Seed/ Seedling treatment : in this method seed or seedling treatment before sowing in the field is
an important task to prevent from any seed borne pests and diseases. 3% Of Fish Tonic solution
should be used to soak the seeds for 20 to 25 minutes or in case of seedling treatment. dip the
seedling for 20 to 25 minutes before planting in the field or nursery bed. Rhizomes of Ginger,
Turmeric and sets of Sugarcane should be soaked for 30 to 35 minutes before planting in the
field.

5. Marketing Plan
Our company which is Wanni Fish Tonic product has the vision to supply the fish tonic for all
farmers in Wanni district. We should become the leading company and should be able to supply
the total requirement of all crops in the region for reasonable price. Existing Government policy
as well as Global concern on environment and health highly expects all the business entities to
reduces wastage and enhance the local products with eco-friendly manner and with available
resources. There are some companies in Sri Lankan who produce the organic fertilizers. Couple
of companies only produce organic compost in massive level to satisfy the needs of local
farmers. But their quality and nitrogen level have certain issues. We can’t full fill the needs of
Sri Lankan’s farmers at present even though some produce large scale organic fertilizers since
demand is very high due to present government policy.

President Secretariat via Ministry of Agriculture and Department of Agrarian Development are
highly expected to purchase and promote local products rather depend on importation. But they
couldn’t achieve it yet due to various issues. Further, present government face major issues of
foreign reserve. Therefore, they want to reduce the importation. Also non-communicable
diseases which we have like CKDs and Cancers are more related to use of Chemical fertilizers.

6. Manufacturing Method

Fish tonic or fish amino acid preparation method

Take fish waste and jaggery in 1:1 ratio. If we take 1kg fish waste take 1kg jaggery.

1. Break jaggery into small pieces

2. Take a plastic bucket and place fish waste into the bucket (no need to touch).

3. Then add broken jaggery into the bucket and mixed it well by stirrer wood no need to touch by
hand.

4. Close the bucket by a lid air tightly and keep it in a shade condition

5. After 10th day open the the lid and stir it by a stirrer wood well while you feel rotten fruit
smell (little bad smell). Then close it air tightly and keep it in shade condition

6. After 21 days open the lid you will feel riped wood apple smell. That mean fish tonic is ready
to use
7. Financial Matrix

Presently Mr.Andrew has 5 acre of land for the cultivation and he is utilizing it. In addition to
that he was producing the Fish Tonic with the name of Wanni Fish Tonic un registered. So,
doesn’t need any land to be purchased. He needs to collect inputs, labour charge, Jaggery cost
and barrel cost will be there. In addition to packaging and marketing cost also will be occurred.

Description First 06 Months-RS Second 06 months-RS Total-RS

1. Total Production &

Sales 7,200,000.00 7,200,000.00 14,400,000.00

2. Total Cost 5,400,000.00 5,400,000.00 10,800,000.00

3. Net Profit 1,800,000.00 1,800,000.00 3,600,000.00

Cost Items First 06 Months-RS Second 06 months-RS Total-RS

1. Material Cost 3,600,000.00 3,600,000.00 7,200,000.00

2. Labour Cost 810,000.00 810,000.00 1,620,000.00

3. Electricity 30,000.00 30,000.00 60,000.00

4. Packaging-Barrel &
Bottling 360,000.00 360,000.00 720,000.00

5. Transport & Marketing 300,000.00 300,000.00 600,000.00

6. Miscellaneous (Food,
water, testing, insurance
etc) 300,000.00 300,000.00 600,000.00

Total Cost 5,400,000.00 5,400,000.00 10,800,000.00

After one year, the production will be increased triple time than the current year. When the
product ion increased job opportunities also will be increased. There are many women headed
families in the region due to prevailed war situation. This business expansion will give the
opportunity provide jobs and it will ensure the stable income of such families.
8. SWOT Analysis

Strengths Weakness
Fish Waste Freely available Labour dislike the smell of fish waste
Labour available Covid 19 Situation
Technical Skill available
Good Price available
Opportunities Threats
Stable Policy of His Excellency Parliament may take decision on importation
Reputation from UN of chemical
Environmentally Safe Chances of back market chemical fertilizer
Economically Cheap for farmers

9. Registration and Recognition

This product will be tested at ITI and approval of National Fertilizer Secretariat will be obtained.
After that, this will be registered at Divisional Secretariat to obtain Business Registration
number. Every month sample will be sent to ITI for testing to ensure the quality production.

10. Risks and Mitigation

 Workmanship, third part and work site insurance will be obtained in case of any disaster
and risk
 Monthly testing will be done batch wise at ITI
 Frequent visits of Agriculture Instructors and Agrarian Development officers will be
obtained
 Model cultivation inside the production site for each batch will be done to ensure the
quality and see the result real-time and direct basis

11. Conclusion

Wanni Fish Tonic Production company will produce 100 liters per day initially and the
production will be tripled following year. 7 liters required for one acre of cultivation. For the first
year, 5100 acres will be benefitted. Second year 15300 acres will be benefitted. After 5 years,
1000 liters will be produced. It will fulfill the requirement of 51000 acres. Major problem of
Organic Fertilizer Availability in the region will be addressed by increasing the production of
Fish Tonic in the region. Through that, job opportunity will be given to women headed families
as well.