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.

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