This project has been proposed and postponed since mid of last year, June, 2009.
The History of All Cause
My family has spent the past 20years in paint manufacturing business, and fortunately gained a lot of knowledge and experiences to know this industry from head to toe. In this 20years, I have to admit that there are times when our business was extremely good, and we are like monopoly a certain market in the region, but that has made us went into mismanagement.
The Cause
For the past 10years, there are no market expansion, no new product development, no new machinery investment, and in fact, no improvement in manufacturing method. Logical sense, we are going backward. Unfortunately, my dad is not aware of it, and for the past few years, I was fighting for my own career, and I too ignored it.
So, the outcome is, new competitors came into market, to make the situation worse, some of these competitors were actually our reselling-agents and they stole our method. Over the past 2years, 30% or more of our business has been stolen, and it is increasing. Some of them even outbeat us, and became leader in this region. And sadly, they spread rumours that our company is closing down, and took more of our clients.
The Story Begins
It was last June when I got to know about this. My dad was struggling with his employees problem. My dad wanted them to improve and become more systematic, but these people refuse to compromise. They are used to the old method, they are in their comfort zone and not willing to change. Worst, when my dad trying to implement new formulation and method, they sabotage the process. End up, some of them got fired and some of them quit their jobs.
Left only one worker and my dad in the factory, lead to unable to complete the orders in time, and result in losing more customers. It was the worst time for our factory, and all the while my father just being silent until he fell sick due to overload. After then only I found out that this situation is at critical stage. Only two way for us, we change or we fail.
My Decision
No matter how it is, this is my obligation as a son to help my father. I've decided to drop everything I have outside, and return to this downfalling business. I've spent all my time to study about the industry, the tech and etc, and frankly I couldn't get much information. This is an industry that very little percent of people in the world would ever step their foot in.
Still, I'd managed to digged some information from my father before I officially join him.
I've found that paint is merely an modified glue with colour. The properties of paint, to make it so called adhese/ stick on any surface are due to the type of 'glue' that you're using. The whole matter is about the colour properties. Then I understand why most of the manufacturers in this market are doing 'coatings' but not paint. Because, paint is difficult while coatings is merely a transparent layer of protection to surface. I finally see where is our stand and our advantage, as we've been dealing with colours ever since we started the business.
Potential
Come to my suprise is that, most of the coatings manufacturers outside do paint as well, but they don't produce the colour themselves. They bought something called 'colour-paste' from other producer. What they do is, the mix the colour into the glue they produced, and became paint.
It is not that they do not know how to produce colour, but is because it is complicated and difficult to control. Plus, the machines in the market are expensive, and high maintenance. It is more practical for them to buy the colours. In fact, all of our competitors now are buying the colours.
There I see the chance. There I know how we are going to strike back. I'm going to produce mainly colour paste.
Our Differences
Since there are so many others outside, how come we are able to produce colours without their hassles?
This is a little bit of history, my dad was a mechanical engineer, and he used to have a buyer from Japan who order large quantities of colour paste every month, and demanding for a fairly lower cost than ordinary market value. My dad invented his own machine during that time when he was fighting to get this client. He was head on with a few large company at that time, think of the paints in the market now, you name it, they are all in the same fight. End up, my dad won the contract.
Due to his low maintenance of machine, he is able to offer lower price. And that is why, he stopped progressing. He was too proud of himself.
My New Game Rules
So now, since the market has already developed into this new trend, "everyone can make paint".
I've planned a new strategy, I'll create more paint manufacturer instead of killing them off. I'm doing this for a win-win scenario.
To those who steal:
I'll sell the colour paste, indirectly pull certain % of profits from their business, as a compensation for us, also they are able to get cheaper and reliable source.
To those new comer:
I'm giving out technology, how to produce paint and technical support, as long they are buying colour paste from us. For this, we are able to capture larger market, plus back-fire those who stole from us. This is business.
Resulting
Through this, I can predict that instead of losing business, we are actually growing. Furthermore, matching colour for paint is actually a very difficult process. It consume a lot of time and need professional technique, plus there are high possibility of getting complaints from customers and needed to provide after sales service all the time.
So, by selling single-tone paste to professional manufacturers, we can reduce the hassle of services, we can reduce the works of matching colours, save more professional labours, save time. These 'saves' are the most critical point in business nowadays. You save, you win.
We can concentrate mainly in producing colour paste. The quantities are bulk, to sell and personal use, the delivery is limited. We do not have to travel the entire region just to send a few tins to several customers. The machine will be very simple to operate, even foreign workers can operate it according to instruction and formulation.
Re-start
This plan has been made around June-July 2009. But because I'm not yet ready to be in the factory, therefore it has been postpone for several months. One new machine has been built, and ready to perform testing since September 2009.
I finally join my father in March 2010, due to two reason. First, I find that I've delayed enough. Second, due to another project is about to launch.
Last 2 weeks, I've tested the new machine, and it resulted a success. There are only a few little minor problems to be modify then it will be fit to operation. With new formulation and new machinery, the paste produced are very fine compare to our previous production using old machines and methods. It is considered par quality with those selling in the market now, and yet we can have the same % of margins even if we market it with lower price.
We have decided to use these paste our own for 2months to see its result. If it is perfect, then we will start by selling basic black and white paste which the market consume the most. Yes, every colours you see, need to be tone by black or white. We will conquer the market with this 2 basic colours, then later introduce other basic colours such as red, blue, green, yellow, brown and maybe violet.
With this approach, I can see we are not only limited to regional business but capable to expand our market into northern and central region, capture the market of our competitors' origin suppliers.
As now, we are still in testing phase, more updates will be record here as results shown.
Tuesday, March 30, 2010
Routine Update - Fishery Cultivation
Nothing new, just a little change of plan.
Sharing?
Become non-sharing. Before, we thought that we will operate our testing phase together with our neighbour, who has a ready-made pond, which capable to accommodate up to 20,000fishes at once. But now, since we have consider the pros and cons of joint-venture, and the personality of this neighbour, we've decided to drop the origin plan.
It is not that we are selfish, but at this stage, every aspect is unknown. We cannot estimate the outcome.
The exact duration, exact production, exact costing regarding utilities, feedings and other materials or labour cost and man-power needed. It is very difficult to decide how we are going to share the margins, especially this neighbour does not offer financial venture. He only offered to share us the pond, and we will have to pay for feedings.
Which is quite unfair to us in a way. We have to invest a lot equipments cause we plan to only transfer the fishes into the pond once they reach certain size, and they will only stay two months in the pond before market. Before they are in the pond, the fishes will be under our hand for at least four months. It is like a landlord offer a land for farmer, and enjoy 50% of the harvest, which in general case is ridiculous. We do not deserve this, especially if our operation made a success model. He will eventually gain access to all technical information, enjoy the fruitful harvests and at the end, he will operation his own and evict us from the pond. We have no bargain power at all.
Instead...
We will build several tanks for testing, including the 3tanks that we'd bought, and later will add another cement tank, to make it four tanks in total. We estimate will have the fishes in tank for at least 4 to 5months before we market them. Furthermore, we will not keep the fishes from 'fry' stage, which I recommended to my dad before.
We will have our stockings which already at growing stage, about 2months old, 3-4inches in length, weight unknown.
Benefits
1) Larger size stockings
Although it will be more costly, but it will save us 2months of operation, which in the long-run, we are able to increase the harvesting frequents, which in general, each tank is able to produce at least 3harvest in a year.
As business is all about cashflow, with more frequent in-flow of cash, operation made easier and it too produce more faster expanding.
2) Sites
Even if later, we wanted to make it a large scale cultivation, with the success model in hand, also harvesting cash-flow at the same time, we can easily arrange agreement with any interested parties and we have stronger bargain power. We are able to layout the costing and ROI. Mutual benefitial agreement can be strike with this approach.
Furthermore, we can too have our own ponds being constructed if we wanted to. Then there will be no leakage of technology and technical information. We are likely to adapt this way unless we are not able to find any strategically and environmetally friendly area.
3) Partnering
We will only deal with one partner, which is a very simple partnership. We are the supplier, they are the buyer. There will be no hanky-panky things in between. There will be no worries of by-passing or any other. This will create a long-term steady and sustainable partnership.
4) Decision Makings
There is no need for votings. Most of the time, partnering in a business can create a lot of chaos. Be it financially or operational. There will be people who doens't want to involve into works but expect to have equal returns, or not willing to re-invest into a larger scale and so on. Each of these issues are capable to cause a break-down, and eventually dissolve.
Since this business has prove to have its value and unpredictable and unlimited potential, we rather spend more time to expand on our own, than giving chance for chaos to come in.
New Conclusion:
We will be going on our own. Smaller scale but same return as we do not need to split our margins. We will launch our testing phase within April, and expect to complete by August. Layout of statistic growth, costing and other issues will be recorded to perform analysis and improvement modifications.
Also, if the result is good as we estimate during the first two months of operation, and the group is able to confirm with us during April or May, we might straight pour in a large sum of investment and kick start this cultivation business.
Time will tell, and we'll see.
Sharing?
Become non-sharing. Before, we thought that we will operate our testing phase together with our neighbour, who has a ready-made pond, which capable to accommodate up to 20,000fishes at once. But now, since we have consider the pros and cons of joint-venture, and the personality of this neighbour, we've decided to drop the origin plan.
It is not that we are selfish, but at this stage, every aspect is unknown. We cannot estimate the outcome.
The exact duration, exact production, exact costing regarding utilities, feedings and other materials or labour cost and man-power needed. It is very difficult to decide how we are going to share the margins, especially this neighbour does not offer financial venture. He only offered to share us the pond, and we will have to pay for feedings.
Which is quite unfair to us in a way. We have to invest a lot equipments cause we plan to only transfer the fishes into the pond once they reach certain size, and they will only stay two months in the pond before market. Before they are in the pond, the fishes will be under our hand for at least four months. It is like a landlord offer a land for farmer, and enjoy 50% of the harvest, which in general case is ridiculous. We do not deserve this, especially if our operation made a success model. He will eventually gain access to all technical information, enjoy the fruitful harvests and at the end, he will operation his own and evict us from the pond. We have no bargain power at all.
Instead...
We will build several tanks for testing, including the 3tanks that we'd bought, and later will add another cement tank, to make it four tanks in total. We estimate will have the fishes in tank for at least 4 to 5months before we market them. Furthermore, we will not keep the fishes from 'fry' stage, which I recommended to my dad before.
We will have our stockings which already at growing stage, about 2months old, 3-4inches in length, weight unknown.
Benefits
1) Larger size stockings
Although it will be more costly, but it will save us 2months of operation, which in the long-run, we are able to increase the harvesting frequents, which in general, each tank is able to produce at least 3harvest in a year.
As business is all about cashflow, with more frequent in-flow of cash, operation made easier and it too produce more faster expanding.
2) Sites
Even if later, we wanted to make it a large scale cultivation, with the success model in hand, also harvesting cash-flow at the same time, we can easily arrange agreement with any interested parties and we have stronger bargain power. We are able to layout the costing and ROI. Mutual benefitial agreement can be strike with this approach.
Furthermore, we can too have our own ponds being constructed if we wanted to. Then there will be no leakage of technology and technical information. We are likely to adapt this way unless we are not able to find any strategically and environmetally friendly area.
3) Partnering
We will only deal with one partner, which is a very simple partnership. We are the supplier, they are the buyer. There will be no hanky-panky things in between. There will be no worries of by-passing or any other. This will create a long-term steady and sustainable partnership.
4) Decision Makings
There is no need for votings. Most of the time, partnering in a business can create a lot of chaos. Be it financially or operational. There will be people who doens't want to involve into works but expect to have equal returns, or not willing to re-invest into a larger scale and so on. Each of these issues are capable to cause a break-down, and eventually dissolve.
Since this business has prove to have its value and unpredictable and unlimited potential, we rather spend more time to expand on our own, than giving chance for chaos to come in.
New Conclusion:
We will be going on our own. Smaller scale but same return as we do not need to split our margins. We will launch our testing phase within April, and expect to complete by August. Layout of statistic growth, costing and other issues will be recorded to perform analysis and improvement modifications.
Also, if the result is good as we estimate during the first two months of operation, and the group is able to confirm with us during April or May, we might straight pour in a large sum of investment and kick start this cultivation business.
Time will tell, and we'll see.
Monday, March 29, 2010
Getting Ready
I've spent my weekend discussing with a few friends.
So far, all of them are optimistic and confident with my proposal.
The Sites
At the moment, they are willing to give out their land, convert into cultivation site. There are several locations from these friends, which is :
1) Malacca - about 80acres available - of course I don't need all.
2) Johor - more than 100acres available, which I might only need less than 10%.
3) Pahang - 30acres available.
4) Penang - 30acres.
These are all rubber and palm oil estate, and water source, and capable to convert into fish farming. I'm shock to find out one of the friend is already starting to cultivate himself, but he doesn't have the right knowledge and method to build a large scale farming.
So, if I get the confirmation, these areas are ready to launch.
New Equipments
When I got home, my dad told me he already acquire a few tanks which the size is 6m x 5m, to launch our medium size testing phase. It is like the size of a small lap pool. I'm wondering if I can keep one to use as a private pool to myself... haha, well, I guess we don't need those used fiber tank anymore.
Beside, he already bought the water jet pump, which capable to produce extra oxygen.
General jet pump only able to provide H202 or H2O3. But this one is H2O5.
Which mean, with a similar size of tank, I can keep double amount of fishes, and that actually save up a lot of land used.
The Feeds
We have a conclusion to use chicken diets, fish pellets, fish meal, trouts and copra waste, which so happen we have the access to the sources. That will help reduce the feeding cost from about 45% to 25%. If we can successfully cultivate them as normal growth rate, then we can easily doubling expand our farm from each or 2harvests.
Bio-Filter System
This one is tricky. From all equipments, this is the most expensive one. Generally we can get one from the market at no more than 2000, but because we are having a very large scale farming soon, those are not suitable.
So happen again, there is a friend who have this filter system, but he has no extra time or cash to launch his own farm. We are now working the possibility with him to join us. If he agree, (which I don't see any reason for him to not agree), then we can start already.
First Farm
We are planning to work out an acre size farm at the beginning, this will take less than a year to complete, as we wanted to save capital and start small. Then, we will expand another 2acres, altogether 3acres. Estimate will be complete in less than 2years, with a production of 100 to 150tons monthly.
After this is done, then we will launch larger scale at another area and other states.
Back-up Plan
No matter if the confirmation is coming or not, we are still going to start the cultivation. I've contact with some friends who are rich with connections, and if I need to export these fishes, I use their help to get all certifications done, and export to middle-east. As some of them already exporting poultry into middle-eastern market, so I guess I can easily hop in.
But, I hope this is not necessary.
So far, all of them are optimistic and confident with my proposal.
The Sites
At the moment, they are willing to give out their land, convert into cultivation site. There are several locations from these friends, which is :
1) Malacca - about 80acres available - of course I don't need all.
2) Johor - more than 100acres available, which I might only need less than 10%.
3) Pahang - 30acres available.
4) Penang - 30acres.
These are all rubber and palm oil estate, and water source, and capable to convert into fish farming. I'm shock to find out one of the friend is already starting to cultivate himself, but he doesn't have the right knowledge and method to build a large scale farming.
So, if I get the confirmation, these areas are ready to launch.
New Equipments
When I got home, my dad told me he already acquire a few tanks which the size is 6m x 5m, to launch our medium size testing phase. It is like the size of a small lap pool. I'm wondering if I can keep one to use as a private pool to myself... haha, well, I guess we don't need those used fiber tank anymore.
Beside, he already bought the water jet pump, which capable to produce extra oxygen.
General jet pump only able to provide H202 or H2O3. But this one is H2O5.
Which mean, with a similar size of tank, I can keep double amount of fishes, and that actually save up a lot of land used.
The Feeds
We have a conclusion to use chicken diets, fish pellets, fish meal, trouts and copra waste, which so happen we have the access to the sources. That will help reduce the feeding cost from about 45% to 25%. If we can successfully cultivate them as normal growth rate, then we can easily doubling expand our farm from each or 2harvests.
Bio-Filter System
This one is tricky. From all equipments, this is the most expensive one. Generally we can get one from the market at no more than 2000, but because we are having a very large scale farming soon, those are not suitable.
So happen again, there is a friend who have this filter system, but he has no extra time or cash to launch his own farm. We are now working the possibility with him to join us. If he agree, (which I don't see any reason for him to not agree), then we can start already.
First Farm
We are planning to work out an acre size farm at the beginning, this will take less than a year to complete, as we wanted to save capital and start small. Then, we will expand another 2acres, altogether 3acres. Estimate will be complete in less than 2years, with a production of 100 to 150tons monthly.
After this is done, then we will launch larger scale at another area and other states.
Back-up Plan
No matter if the confirmation is coming or not, we are still going to start the cultivation. I've contact with some friends who are rich with connections, and if I need to export these fishes, I use their help to get all certifications done, and export to middle-east. As some of them already exporting poultry into middle-eastern market, so I guess I can easily hop in.
But, I hope this is not necessary.
Friday, March 26, 2010
Breaking News
Today, after a conversation of my dad to his old friend, we are quite confirm that we'll be working together with the group.
The Plan
Apparently, their plan is very huge, is out of my expectation. They are not only involve in fishery cultivation, they are too involve in plantations, and other foods as well as high quality fertilizer and processed food. It is very huge, far more than whatever plannings I was having previously. It is a chain of production, related to entire food industry. I'm starting to admire their vision.
According to my father, his friend already personally approved our operation. I hope he will confirm us to be the main operator in state of perak. He will be spending this weekend, to do some survey at our proposed site. Although they are not confirm yet, the final decision will be on April, which is next month, whether they will all agree, and sign the contract.
My vision
If this goes on, it will be a long-term project, in fact, very long-term. Its not some 3 to 5years project, but possibly talking about 10 to 20years or more.
All I ever ask, is to do this for 5years, smoothly, according to plan, my networth will be more than a hundred of millions easily. But if this really on, I really cannot imagine the possibilities, as one of the partner with them at the beginning stage of project.
Other States
Furthermore, there are more exciting news coming next. They will be hosting at least in 9states of the country. My dad already ask about Sarawak, and he said is fine. So, we might get the chance to develop there, since my aunt is already someone established over there. We can easily propose to my aunt, and get a fair share of ownership and profit. And if my aunt is involved, she is not the person who satisfy easily. She has been dealing with export business for years, and having several ports by herself, god knows what scale she will be doing.
What to do now?
Basically nothing for the moment, as we are waiting for their confirmation by April.
But, I'll do some extra preparation.
I'll talk to another friend from Malacca who happens to own some land and already trying to cultivate fish.
I'll see if he is interested to join us. If he is in, I'll have some more shares of another operation at state of malacca. So, it will become 3 operations at 3 different states at the same time.
My Concern
Frankly, I'll be very busy travelling peninsular and east malaysia. But, I guess, this is worthwhile.
As long we must set the operation system correctly, and manage it well. A lot of manpower will be involve, and needed strict control. Also, security issue is the critical key issue. I'm thinking that there will be massive investment on security, possibly like some army base with guard tower and spot lights.
No choice, it meant to be.
Millions of dollars are in the water, living gold.
My dad asked me to take shooting lesson and get a license to carry guns and shot guns.
That is very interesting...
The Plan
Apparently, their plan is very huge, is out of my expectation. They are not only involve in fishery cultivation, they are too involve in plantations, and other foods as well as high quality fertilizer and processed food. It is very huge, far more than whatever plannings I was having previously. It is a chain of production, related to entire food industry. I'm starting to admire their vision.
According to my father, his friend already personally approved our operation. I hope he will confirm us to be the main operator in state of perak. He will be spending this weekend, to do some survey at our proposed site. Although they are not confirm yet, the final decision will be on April, which is next month, whether they will all agree, and sign the contract.
My vision
If this goes on, it will be a long-term project, in fact, very long-term. Its not some 3 to 5years project, but possibly talking about 10 to 20years or more.
All I ever ask, is to do this for 5years, smoothly, according to plan, my networth will be more than a hundred of millions easily. But if this really on, I really cannot imagine the possibilities, as one of the partner with them at the beginning stage of project.
Other States
Furthermore, there are more exciting news coming next. They will be hosting at least in 9states of the country. My dad already ask about Sarawak, and he said is fine. So, we might get the chance to develop there, since my aunt is already someone established over there. We can easily propose to my aunt, and get a fair share of ownership and profit. And if my aunt is involved, she is not the person who satisfy easily. She has been dealing with export business for years, and having several ports by herself, god knows what scale she will be doing.
What to do now?
Basically nothing for the moment, as we are waiting for their confirmation by April.
But, I'll do some extra preparation.
I'll talk to another friend from Malacca who happens to own some land and already trying to cultivate fish.
I'll see if he is interested to join us. If he is in, I'll have some more shares of another operation at state of malacca. So, it will become 3 operations at 3 different states at the same time.
My Concern
Frankly, I'll be very busy travelling peninsular and east malaysia. But, I guess, this is worthwhile.
As long we must set the operation system correctly, and manage it well. A lot of manpower will be involve, and needed strict control. Also, security issue is the critical key issue. I'm thinking that there will be massive investment on security, possibly like some army base with guard tower and spot lights.
No choice, it meant to be.
Millions of dollars are in the water, living gold.
My dad asked me to take shooting lesson and get a license to carry guns and shot guns.
That is very interesting...
Thursday, March 25, 2010
First Project - New Information
Today, we've obtained some new information about the cultivation.
One of it is from a general manager whom work for a very large scale cultivation company, international scale and supplying worldwide, mainly USA. Their productions are in thousands of tons monthly.
Things to concern:
1) The fish cannot be scare, they have a weak heart. Once it got scared, it will not eat in a few days. This might affect its growth and internal system in the long run.
2) Must do PH level checking daily, and ammonia content, believe this will affect them as well.
3) For small fry and fishes, must be exposed to sunlight, for them to consume more and grow faster. Temparature should be around 26 to 30 celcius.
Beside these, there are additional information from a reliable source saying:
Security is the key to success in this business. Not only we must be aware of burglary, there are predators in the wild as well.
They can come from anywhere, sky, land or water.
There are snakes, birds and most important, the others*. (I'll not release this type at the moment)
There were this guy, invested about half a million, successfully cultivated, but the farm was destroyed by this *others* overnight. They came in a group.
Now instead of enjoying the profit of harvest, this guy have to reinvest another few hundred thousands to build walls and roofs to seal the entire operation. Poor guy, but lucky us. At least we knew what to do and what to expect. We can prepare ourselves for it.
Succeed Example:
For this poor guy, do not worry for him, he is definitely harvest again soon.
According to his information, he only feed the fishes twice a day. But with very nutritious feedings.
He fed them with fish. Yeah, you heard it right, FISH.
Well, nothing to be suprise, fish do eat fish. It's nature.
Come to think of it, fishes are the highest source of protein, so, for them to grow, obviously this will be the best ingredient to feed, next will be other animal's meat or organs.
According to him, feed them only with salt water fishes, thats what they like.
We planned to minced the fishes into powder form, then mixed with other ingredients, so their nutrition can be even and proportionate. And of course, lower the feeding course.
Ordinary operation, feeding is already occupied half of your cost. To success in this one, we must be able to reduce the feeding cost, to expand fast. Failed to do so, will result a very stagnant production and leads to a failed project.
Another issue is, for small fishes, we must have plankton for them to eat, they grow faster. So, now seems there are more works to do. We have to first cultivate some plankton waters.
Next to do:
I'll try to seek for the feeding material sources, also method to cultivate planktons.
Completion:
Dad already found some used material to build fiber tanks. We just have to send a lorry to collect cause it is locate at another state. At first, we thought of wanted to build concrete tanks. Later when we got this sources, because it was used fiber, the cost is rather the same as building concrete tank but it is mobile. It will be easier when next time, if we have to move to another area.
It seems, the project is about to start any time from now on. We almost get everything we need.
Now I just have to pray for things to go smoothly.
One of it is from a general manager whom work for a very large scale cultivation company, international scale and supplying worldwide, mainly USA. Their productions are in thousands of tons monthly.
Things to concern:
1) The fish cannot be scare, they have a weak heart. Once it got scared, it will not eat in a few days. This might affect its growth and internal system in the long run.
2) Must do PH level checking daily, and ammonia content, believe this will affect them as well.
3) For small fry and fishes, must be exposed to sunlight, for them to consume more and grow faster. Temparature should be around 26 to 30 celcius.
Beside these, there are additional information from a reliable source saying:
Security is the key to success in this business. Not only we must be aware of burglary, there are predators in the wild as well.
They can come from anywhere, sky, land or water.
There are snakes, birds and most important, the others*. (I'll not release this type at the moment)
There were this guy, invested about half a million, successfully cultivated, but the farm was destroyed by this *others* overnight. They came in a group.
Now instead of enjoying the profit of harvest, this guy have to reinvest another few hundred thousands to build walls and roofs to seal the entire operation. Poor guy, but lucky us. At least we knew what to do and what to expect. We can prepare ourselves for it.
Succeed Example:
For this poor guy, do not worry for him, he is definitely harvest again soon.
According to his information, he only feed the fishes twice a day. But with very nutritious feedings.
He fed them with fish. Yeah, you heard it right, FISH.
Well, nothing to be suprise, fish do eat fish. It's nature.
Come to think of it, fishes are the highest source of protein, so, for them to grow, obviously this will be the best ingredient to feed, next will be other animal's meat or organs.
According to him, feed them only with salt water fishes, thats what they like.
We planned to minced the fishes into powder form, then mixed with other ingredients, so their nutrition can be even and proportionate. And of course, lower the feeding course.
Ordinary operation, feeding is already occupied half of your cost. To success in this one, we must be able to reduce the feeding cost, to expand fast. Failed to do so, will result a very stagnant production and leads to a failed project.
Another issue is, for small fishes, we must have plankton for them to eat, they grow faster. So, now seems there are more works to do. We have to first cultivate some plankton waters.
Next to do:
I'll try to seek for the feeding material sources, also method to cultivate planktons.
Completion:
Dad already found some used material to build fiber tanks. We just have to send a lorry to collect cause it is locate at another state. At first, we thought of wanted to build concrete tanks. Later when we got this sources, because it was used fiber, the cost is rather the same as building concrete tank but it is mobile. It will be easier when next time, if we have to move to another area.
It seems, the project is about to start any time from now on. We almost get everything we need.
Now I just have to pray for things to go smoothly.
Tuesday, March 23, 2010
First Project At Hometown
So, here we are, I'm about to write stuffs about my first project.
It is nothing new, it is called Aqua Culture.
This industry has been around for millions of centuries, I believe everyone must have at least heard of it.
The creature I'm about to cultivate, is called Tilapia.
Hell yeah, common enough.
The thing is, it is too common until no one really care to discover it's potential future.
Albeit it already being cultivate around the world for centuries, really centuries, but this type of fish, has just been crowned as "aquatic chicken".
FAO record that there are 2.6millions tons production in 2007, and it is still increasing.
Seeing the fishery industry now, we can easily understand that we will have no more wild breed fish in the next few years.
Fishes will be scarce, and definitely demand will come. In fact, it is already coming.
Same year, 2007, Malaysia has recorded 52,700tons of productions. Frankly, this amount is not enough for local market, and yet, most of the productions are for export purposes. Ironically, our dear fellow citizens are actually consuming fishes from Thailand.
Statistic shown, there are at least 20 cargo trucks transporting fishes from Thailand alone, into Malaysia,
distributing the entire Peninsular. Oh man, how much money is leaking to our neighbouring country?
And how much money has just slip through our hand?
I've been learning about this industry ever since I'm back in hometown. Which is now already 6months of feasibility studies. I think I've learned enough paper facts, and is time to get my hands dirty.
The Story Beings
So happen, my dad have friends who recently hooked up with an international group, who is interested to invest tilapia cultivation, and frozen process for export market. So spontenously, my dad will involve into my project.
My origin plan was to have a minor scale testing, to know exactly the growth, the condition, put everything into proper statistic calculation, which will need at least 6 to 8months. Now, because of my dad,everything seems change. He seems like he couldn't wait that long, he wanted to test and launch a medium scale at the beginning. Well, I'm okay since he is now the financial suppliar, whatever you said, sir!
Again, so happen, we have some sort of underground water floating out behind our factory backyard, and SO HAPPEN again, our neighbour factory had digged a pond a year ago and already cultivating the fishes, and have good result.
Obviously, we are going to set our cultivating place at this little factory site, since we will move the manufacturing division to another factory in a year. There will be no problem for some little expansion in the future.
And, we've talked our neighbour into the game, share us his pond. The only down is that we will bear all the feeding cost. Nevermind, as long as we get a fair cut of profits.
The Unsolve
The only problem unsolve is, there are actually two parties to join. Either we sell our fishes to the group I mentioned above, or a taiwanese buyer. Both have different offers. I'll list it here, for my own reference next time:
1. Int. Group
- An old and trustable friend, two option:
i ) Find them a large cultivation area, which has natural water, join in as a minor holder.
ii) Cultivate ourselves, then sell to them, as they are offering higher price compare to market.
For this, my dad actually wanted to have both options. Means, we will join them if we found the land, and at the same time, we will cultivate ourselves, and supply to them as well. So far, this is a sound plan, we'll have to see if it can work.
2. Taiwanese
- A friend being introduced by our neighbour's brother in law
From the relationship chart, is already quite shaky. But put that aside, it's just business.
This guy already found a huge place for his cultivation, although is not confirm yet.
We might asked him to spare us a little area, to operate ourselves, but using his technology, spawns and then selling back to him. Like a sub-contractor.
Furthermore, his price is fairly low compare to general market price.
If to decide according to the listings above, well, there will be no question, I'll choose the first one.
But we will not know, until the dust settle. Both sides are still not confirm yet. We'll have to see.
Don't Care, We Got to Get Going
No matter which side we will be with, we have to start our operation.
They will need another few months to be official. So, if we are already started something, at least we have a little leverage to use.
Our leverage:
i ) We already having hands on experience
ii ) We are ready to supply you, albeit very small amount of production.
iii) We are already in the industry before you!
Our Progress
Before I write here, my dad and I already done something.
I've have lay out and planned some structural modification in the factory, while my dad already bought the essential equipments, waiting for transport.
Wwill launch our operation, by mid of April.
In my plan, if everything went well, I can have my first harvest before year end, depends on condition.
I'll post it when I harvest.
My Target
I'm planning to have 10acres of cultivation site, which have 150ponds, accommodate 2mils of fishes, and output of 550,000fishes per month. Weight unknown yet. Until I have the figure, I'll post it with all other related data, including costing and margins.
I believe to achieve this, I've got to spend at least 3 to 5years.
We'll see.
It is nothing new, it is called Aqua Culture.
This industry has been around for millions of centuries, I believe everyone must have at least heard of it.
The creature I'm about to cultivate, is called Tilapia.
Hell yeah, common enough.
Albeit it already being cultivate around the world for centuries, really centuries, but this type of fish, has just been crowned as "aquatic chicken".
FAO record that there are 2.6millions tons production in 2007, and it is still increasing.
Seeing the fishery industry now, we can easily understand that we will have no more wild breed fish in the next few years.
Fishes will be scarce, and definitely demand will come. In fact, it is already coming.
Same year, 2007, Malaysia has recorded 52,700tons of productions. Frankly, this amount is not enough for local market, and yet, most of the productions are for export purposes. Ironically, our dear fellow citizens are actually consuming fishes from Thailand.
Statistic shown, there are at least 20 cargo trucks transporting fishes from Thailand alone, into Malaysia,
distributing the entire Peninsular. Oh man, how much money is leaking to our neighbouring country?
And how much money has just slip through our hand?
I've been learning about this industry ever since I'm back in hometown. Which is now already 6months of feasibility studies. I think I've learned enough paper facts, and is time to get my hands dirty.
The Story Beings
So happen, my dad have friends who recently hooked up with an international group, who is interested to invest tilapia cultivation, and frozen process for export market. So spontenously, my dad will involve into my project.
My origin plan was to have a minor scale testing, to know exactly the growth, the condition, put everything into proper statistic calculation, which will need at least 6 to 8months. Now, because of my dad,everything seems change. He seems like he couldn't wait that long, he wanted to test and launch a medium scale at the beginning. Well, I'm okay since he is now the financial suppliar, whatever you said, sir!
Again, so happen, we have some sort of underground water floating out behind our factory backyard, and SO HAPPEN again, our neighbour factory had digged a pond a year ago and already cultivating the fishes, and have good result.
Obviously, we are going to set our cultivating place at this little factory site, since we will move the manufacturing division to another factory in a year. There will be no problem for some little expansion in the future.
And, we've talked our neighbour into the game, share us his pond. The only down is that we will bear all the feeding cost. Nevermind, as long as we get a fair cut of profits.
The Unsolve
The only problem unsolve is, there are actually two parties to join. Either we sell our fishes to the group I mentioned above, or a taiwanese buyer. Both have different offers. I'll list it here, for my own reference next time:
1. Int. Group
- An old and trustable friend, two option:
i ) Find them a large cultivation area, which has natural water, join in as a minor holder.
ii) Cultivate ourselves, then sell to them, as they are offering higher price compare to market.
For this, my dad actually wanted to have both options. Means, we will join them if we found the land, and at the same time, we will cultivate ourselves, and supply to them as well. So far, this is a sound plan, we'll have to see if it can work.
2. Taiwanese
- A friend being introduced by our neighbour's brother in law
From the relationship chart, is already quite shaky. But put that aside, it's just business.
This guy already found a huge place for his cultivation, although is not confirm yet.
We might asked him to spare us a little area, to operate ourselves, but using his technology, spawns and then selling back to him. Like a sub-contractor.
Furthermore, his price is fairly low compare to general market price.
If to decide according to the listings above, well, there will be no question, I'll choose the first one.
But we will not know, until the dust settle. Both sides are still not confirm yet. We'll have to see.
Don't Care, We Got to Get Going
No matter which side we will be with, we have to start our operation.
They will need another few months to be official. So, if we are already started something, at least we have a little leverage to use.
Our leverage:
i ) We already having hands on experience
ii ) We are ready to supply you, albeit very small amount of production.
iii) We are already in the industry before you!
Our Progress
Before I write here, my dad and I already done something.
I've have lay out and planned some structural modification in the factory, while my dad already bought the essential equipments, waiting for transport.
Wwill launch our operation, by mid of April.
In my plan, if everything went well, I can have my first harvest before year end, depends on condition.
I'll post it when I harvest.
My Target
I'm planning to have 10acres of cultivation site, which have 150ponds, accommodate 2mils of fishes, and output of 550,000fishes per month. Weight unknown yet. Until I have the figure, I'll post it with all other related data, including costing and margins.
I believe to achieve this, I've got to spend at least 3 to 5years.
We'll see.
Reason of This Blog
I've never thought of writting this out, my dad had warned me not to publish anything, he stressed that the information about the project is classified as private property. But somehow I feel like I wanted to keep a personal record, or act as a daily journal during the duration of beginning and completion of my project.
I'm a person who likes to write a lot, but never keep my data properly. End up a lot of my works went missing. So, I'm thinking that blogging might be a good way to keep my data, as long as I keep the link to myself only.
*The paragraphs above are to remind myself, why the heck I've done such a stupid act, in case I regret in the future.*
I'm a person who likes to write a lot, but never keep my data properly. End up a lot of my works went missing. So, I'm thinking that blogging might be a good way to keep my data, as long as I keep the link to myself only.
*The paragraphs above are to remind myself, why the heck I've done such a stupid act, in case I regret in the future.*
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