Routine Update - Fishery

It has been few days without any new progress, all of sudden, things start moving again. It was a little chaos, a lot of new decisions and more complications involved. Due to certain reason, our cultivation biz can only last for 6years, start at April 2010. When is April 2016, we have let go the entire operation, or sell it off. It is so sad, but it has to be done.

Ambush
During the last update, I was saying that we will not do share operation with our neighbour. But, before we actually convey our message to him, he already made some moves. This cunning fox ordered 10,000 fries from breeder without informing us. So now we are forced to provide the capital to rear these fishes. This is a lesson for us, we have to be careful with this man. He is not a good partner, he is using us.

Fortunately, my dad made a smart move. He ask him to spare us 3,000pieces to test our tank. So, at least, we won't lose so much to him. So, we are now sharing 7,000fishes together. Expect 7months to harvest. Probably by Nov or Dec.

New Plan
Due to some incidents, we have decided to only operate this business for maximum 6years. So, we are having a very tight schedule to work things out, and get the best result out of it before we sell it. The reason is a little extraordinary and very personal which I will not disclose here. It has nothing to do with the nature of this industry, it was pure personal matter.

No matter, even if I can make a billionaire with this biz in the long-run, I have to let it go in just 6years. So, I've rearrange the entire plan to follow the pace.
We are now still waiting for the confirmation from the group, at the same time, we are building our testing phase. We've been clearing up the area to install tanks for the past two days. Although we haven't finish the clearing process, but we've done 2/3 of the area. Now we just have to finish it in this few days before the actual foundation getting install before tanks arrival.

If the group confirm with us, we will loan about 200k to 300k, plus some personal investment to start. The entire operation will be 2 to 5acres of land, although I wanted to have 10acres, but it seems quite unreachable due to the available of fingerlings stocks.
Because, if I operate 10acres of cultivation, I'll need 1.5mil fries each month, which I don't think I can get it easily. Therefore, I've downsize my cultivation to 2acres - 5acres. Even if 3acres is more than enough.

Structuring
Each acre will consist of 24ponds, size 20 x 80ft, 1600sqft, or fewer number of ponds but larger in size.
We will buy or prepare the 2months old fishes to put into these ponds. 24ponds will be divided into 4phases.
I'm expecting to my harvest cycle of each pond will be 4months. Dividing 24ponds into 4phases, will enable harvesting 6ponds per month. Resulting every month supplies.

Pond:
Generally, this size can accommodate 11,000 fishes (700gm).
But by using our new found technology, our pond will accommodate 22,000fishes.
2000 prepare for losses, and 20,000 expect to be harvest. Total of 14tons of production.
If each kg is given RM10, then we will have 140,000 sales per month.
Cost exclude building pond is expect to be 40,000. Margin available will be 100,000.
Resulting 600,000 each month per acre. If I can have 3acres will result a 2mil margin monthly.

Tactical Operation:
Due to limited capital, I've planned to have 4ponds at the begin. These 4ponds will act as the first batch of rotating supplies for each month. It can be tripling expand during each harvest, but I will take pre-caution of excess rapid growth. I'll only expand by doubling method (1 + 1).

For the first 4months, expecting each pond provide margin of 100k, so I'll start expanding from the very month, by adding one more pond. Then, 5th month, another 100k cash in, and add another pond and so on.

So, by the 8th months, I'm having 8ponds, which is 2ponds per harvest, and will be adding 2ponds each harvest.
By 12th month, we are having 16ponds.
By 16th month, 32ponds.
By 20th month, suppose 64ponds, but I might stop at 48ponds (2acres)
By 24th month, 128ponds (5acres), or I might stop at 72ponds (3acres).

Estimate:
Lets just use 2acres and 3acres for estimation.
Make it easier, use 24months as completion.

2acres are believe to harvest 12ponds a month, resulting 1.2mil margin monthly.
while 3acres will harvest 18ponds a month, and resulting 1.8mil margin monthly.
Each year will be 14mil / 21mil.
If 24month completion, there will be another 4years to harvest, and generating 56mil / 84mil at the 6th year.
When we sell it, we expect the total return will be 80mil to 100mil.

Technology Transfer
Now, because I'll have to stop my operation on the 6th year. I've decided to sell my technology after my expansion completed. I might not asking for cash term, but requesting some percentage of ownership/profit. And planning to have the percentage as long as the cultivation last.
Thus, I'll act as consultant to any incoming partners, and by far, I have no decision on limit yet.
Therefore, my total return might not be restricted by 80 to 100mil. It will be more and lasting.

It is all now waiting for the confirmation.