As I was predicting for the past few weeks, the international company has failed to secure the project.
Reason being, too many crocodiles are in the pond, wide opening their mouth to eat the company alive. They wanted to operate their sites in 9states, and this has trigger the alarm of these states' "chiefs". Their excessive demand have frightened this company, and now they decide to relocate their project to China.
Sad but as usual, this is what happening everyday on this lovely land. Helpless.
So, now we are on our own.
We have build our operation by ourselves, and seek market ourselves as well. Luckily I was planning ahead if this method failed to perform. My preparation wasn't wasted now, although I seriously hope it does.
My Contingency Plan
We have to start small and slow now, this few months, will be our testing phase.
According to our progression, we will have 2tanks which able to accommodate 5000fishes in total. Third tank will be ready by June. Before any further expansion, we will perform some observation. Understand their growth rate, feedings require, ecology, and do estimation.
By July/August, we will be able to come out with some rough estimation of time and cost. Then we can have actual and precise calculation and expansion plan.
Method of Expansion
This few tanks will be our capital. They will act like our cash flow, and ROI.
With precise growth rate, we can calculate their time, cost and ROI, at the same time, estimate free cash for further expansion.
Through the studies I'd made, I believed that we can grow a 600g to 700g fishes in four/five months, with condition that the fishes coming in is already 3/4inches in size, or about 50-80g in weight.
Average selling price will be RM8 to RM9.50 each pieces of fish. Cost will be control below RM4. Therefore, I can perform at least 1.5times expansion.
If the cost can be lower than 3.50 each, I might get a chance to perform 2times expansion.
Estimate 1
Estimate each 600g fish will consume 1.1kg of food. Average price is 2,20, plus electricity and etc become
RM3. Then there will be RM 5 remain.
If 5000 fishes, there will be sales of 40k, and cost of 15k. Remaining 25k.
If I can setup a tank to accommodate 5000fishes with less than 10k, then I can perform a 2times expansion.
Estimate 2
I have another idea, which to find market which accept 200-250g fishes, average price of rm4 to rm5.
Then, I can buy in a 3inches/50g fishes with 0.40 cost each. Rear for 2months and resell for rm4.
Each fish(200g) is estimate to consume 270g of food, average at rm2/kg, which cost 0.55.
Total cost is about RM1 each, and profit of RM3.
Further more, my 2 tanks is able to accommodate 16k pieces, total profit of 48k.
I can easily expand 2times, which is 10k for tank, and 16k for food, and remain 22k as cash flow.
Which mean I have a profit of 11k each month.
Practising this method, I can harvest 6times a year, and that mean expand 6times.
2 to 4, 4 to 8, 8 to 16, 16 to 32, which my target is only 30tanks for the first year.
Total harvest 240k fishes every 2months, profit of 720k each harvest, monthly 360k profit.
If this method works, then I can easily open an acre of land to cultivate full grown fishes.
There will be 2 sets of full grown fishes:
My 30tanks giving out 240k fishes every 2months, sending into 12 large ponds and rear another 4months.
There will be 24 large ponds, rotating every 2months.
Outcome is, every 2months, I'll have 240k large fishes (700g), price at 9.50 each, total sales 2.2mil,
each fish consume 1.26kg/1.3kg of food, easier 1.5kg, average at rm2, rm 3 each fishes. Margin of 6.50.
Total profit is 1.56mil every 2months.
Annual profit of 9.3mil.
If the second method works, and we are able to work for 4years, we will have about 40mil of profit.
Saturday, April 17, 2010
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