Kingdom Prize
Prawnfarm Project
Proposal
GIZ-DTI Region 08
An investment package proposal on the development of
100-hectare fishpond in Sta. Margarita, Samar, seeking a
funding support of P25,000,000 per hectare from Boco
Trade, New Jersey, USA.
KINGDOM PRIZE SEAFOOD INC.
548 Mabini St.,
Brgy. Mazawalo, Palompon,
Leyte Province
4/21/2012
Table of Contents
General Information
Project Description
Background – Rationale
Objectives
Proponent’s Profile
Management Structure
Technical Study
A. Brief Project Description
B. Basic Components of the Improved Pond Systems with the required
Machinery and Equipment
C. Pond Preparation
D. Water Preparation
E. Stocking
F. Feeding
G. Manpower Requirement
Marketing Study
Financial Study
Socio-economic Justifications
Annexes
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Proposal on Integrated Prawn Pond Production
(Prawns, Milkfish and Mudcrabs)
I.
GENERAL INFORMATION
Title/ Name of Project
Proponent
Contact Person
Type of Company
Home Address
Tel. No.
Occupation
Project Site
Area
Products
Funding Requirement
Funding Agency
: Kingdom Prize Prawn Farm Project
: Kingdom Prize Seafood Inc.
: JOSE SEWARD S. SAPALO
: Corporation
: 548 Mabini St., Brgy Mazawalo, Palompon, Leyte Province
: 0908-892-1640/ (6353) 555-8183
: Export-Trader
: Sta. Margarita, Samar Province
: 100-hectares
: Prawns, Milkfish, Oysters, Seaweeds and Mudcrabs
: Php 25 Million or USD 581,395.35 @ P43.00/USD
: Jack Boyajian, BOCO TRADE, New Jersey, USA
II. PROJECT DESCRIPTION
Kingdom Prize Inc. proposes to develop a 100-hectare integrated Prawn Farm in Sta. Margarita,
Samar, duly designed by SEAFDEC which ensures safe and sanitary production integrated with some
milkfish on the reservoir, mudcrabs along the shoreline and in the mangroves, and some oysters and
seaweeds in its water treatment or exit pond for recycling of a clean water around this vicinity. As a
direct retailer, it shall acquire its inputs (fry, feeds, lime, probiotics, etc.) from its regular suppliers
mostly wholesalers. All prawn produce will be exclusively sold to Boco Trade in USA with the latter’s
fish processing center established in Samar State University, Catbalogan City, Samar province.
Project requirements include pond development (more dikes and water gates), pond preparation
using lime, probiotics and bio-manipulators, feeds, fertilizer and some pesticides for maintenance,
some machineries and equipment, and honoraria for experts duly supporting this production for a
combined expense of P338,840 per hectare more or less.
III. BACKGROUND/RATIONALE
The proponent had long been engaged in fishpond operation. It had experience production of
grouper fish, milkfish, prawns and even mudcrabs alternatively in Panabo, Davao; Palawan; Negros;
and in Iloilo, depending on the availability and prices in the world market. When the price of certain
commodity increases, it went along producing the required product. As for instance, there’s a
season where the market demands for mudcrabs, “almost all of us in the locality also grew
mudcrabs which assures better market. But now with the newly established export market in USA,
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we are confident that we could produce appropriately the right volume and in the right technology,
of course with support from BFAR, SEAFDEC and import-buyers in USA who need our produce.”
Through a network with the GIZ-DTI Region 8, BFAR-RFTC, SEAFDEC, PCCI-Greater Calbayog,
Kingdom Prize Inc. had conducted the following series of activities:
On August 16, 2011 – Financing Forum on Agri-Credit Support Project with JICA-Land Bank at
Calbayog City Sports Center where programs for agri and aqua production was introduced by
Ms. Cheeryl Andresio, Marketing Officer;
September 19, 2011 – Investment Forum on Fish Industry at the Convention Center of
Calbayog City where technology was introduced by BFAR and SEAFDEC; Marketing by Kingdom
Prize and United Sustainable Aquaculture (USA); and financing by JICA-LBP ACPS.
October 2011 – BOI Investment Conference in Ormoc City, Leyte Province where aqua industry
is being promoted by the BOI for investment incentives and tax holidays in the region.
October 24, 2011 – Matching of Martinez-Arnold Holdings Feedmill with Tenedero’s Hatchery
in Manginoo, Samar, and with the end-user United Fishpond Operators of Sta. Margarita Asso.
(UFO-SMA) ; and,
November 23-24, 2011 – Value Chain Workshop on Agri-Aqua (Feed) Industry of PCCIPalompon in Palompon, Leyte.
Then finally on March 12, 2012, the import-buyers from USA in the person of Jack Boyajian and Erlinda
Salinas, came down to Calbayog City, Samar, Philippines for an initial talk with the local prawn growers
in Sta. Margarita and its nearby city and municipalities. Thus, this proposal seeking funding support from
the said US buyers for the development of a 100-has integrated Prawn demo farm.
IV. OBJECTIVES
Through a funding support of P338,840 per hectare or entire P25 Million funds (USD 581,395.35
@P43.00/USD ) , the project aims to develop a 100-has Prawn Demo Farm and generate and income
of Php 725,160.00 per hectare from the proceeds of its production through an updated technology
shown herein in details under the supervision of SEAFDEC, BFAR and private technicians effective
this May 2012.
Specifically, the project aims to:
Increase Volume and Income. Enhance volume of production through appropriate technology,
funding support, established market thereby increasing the income from production;
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Safety, Disease Prevention and Quality Improvement. Improve the fishpond design and features
that ensures cleanliness of water cycle thereby assuring safety and fitness for the production of its
seafood products against diseases while increasing its volume and quality of production for export
market;
V. PROPONENT’S PROFILE AND MANAGEMENT ASPECT
The proponent – KINGDOM PRIZE SEAFOOD INC. – is a stock corporation duly registered with the
Philippine Securities Exchange commission (SEC) bearing reg. no. CS201030952, dated October 14,
2010. It has an Authorized capital stock of Php 1 Million upon its registration with FIVE (5)
stockholders namely:
1. JOSE SEWARD S. SAPALO………… Filipino, now resident in Palompon, Leyte, Philippines
2. LOLITA S. PINOON ………………….. Filipino, residing in Panabo, Davao, Philippines
3. GRACE REGALADO …………………. Filipino, resident of Mandaluyong, Metro Manila, Philippines
4. TAN HUANG SENG …………………. Filipino, Singaporean National, 24th Hythe Road, Singapore
5. WONG DORIS ……………………….. Filipino, Singaporean National, 24th Hythe Road, Singapore
The company bears Tax identification No. 402-760-197-000 from the Bureau of Internal Revenue
and is issued with an Import Permit No. 0078-071411 by the Bureau of Fisheries and Aquatic
Resources (BFAR) on August 11, 2011 for Live Fish and Fishery/ Aquatic Organisms.
JOSE SEWARD SAPALO, fondly called in the community as “JOJO”, had completed its Bachelor
Degree in Engineering;
Mr. JOSE SAPALO is indeed busy with his varied business chores. Early morning he visits his fishpond
in Brgy. Mzawalo, Palompon, Leyte. In this fishpond, he grows prawns, milkfish, oysters and
mudcrabs. All integrate as one in their 5-has fishpond. In this fishpond, he has 10- regular laborers
supporting him maintained the said ponds from soil preparation, stockings, water control and
sanitation, feeding till its harvest and delivery. As graduate of Agriculture major in Hatchery, he finds
this fish industry easy to manage.
Jojo is also a member of MAHI where he sits also as its Technical Consultant. He proposes ideas and
programs for the development of his co-operators in prawnpond business. He said they share
cultural management techniques in growing and maintaining prawn and other seafood production
like their mudcrabs, milkfish and tilapia fish.
Jojo agrees with the new technology of SEAFDEC using water-recycling or low-water drain to ensure
the health and production of their Prawns. He admitted that Prawns are more sensitive to diseases
than the mudcrabs and milkfish. But in massive production using 50,000-250,000 stocks of fry in a
hectare of fishpond, definitely needs more feeds, pro-biotics, manipulators, equipment and
machinery plus labor, he explains. Thus, the need for initial loans to cope up with this new
technique!
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Management
Board of
Directors
JOSE SAPALO
Admin/Cashier
MANUEL JAYME
Production
NONOY SAPALO
QC/Marketing
CRIS CONTRERAS
Bookkeeper
External
For a typical business corporation running this 100-has fishpond business, shown above is the
Organizational and Management Structure. On top is the Board of Directors composed of the FIVE
INCORPORATORS including Engr. JOSE SAPALO. Mr. Sapalo is the Chief Executive Officer who
oversees and manage the entire business operation.
Below him is Mr. Manuel Jayme who will handle the Administrative and Finance operation of this
business. Mr. Jayme completes his Master in Business Administration (MBA) from Central Mindanao
Colleges last March 2010 and is currently the Business Consultant for the Department of Trade and
Industry (DTI) in Region 8, funded under the German International Cooperation (GIZ) Program as its
Local Development Expert (EFK). He had serve the DTI for 8-years as Senior Specialist, manage an
Agri-trading cooperative for 3-years, became a Chief of Staff in administering the Office of the
Majority Floorleader in the City Council of Davao.
In the field, is his Production staff headed by a Production Supervisor. Such supervisor poses the
necessary knowledge and skills in fish production purposely to handle its workers in operation. He
also coordinates with External Officers from BFAR, SEAFDEC and private companies such as the
Kingdom Prize. Though this department shall be handled by German Sapalo, Engr. Jojo Sapalo shall
closely supervise this production.
Next to this production department is the Marketing and Quality Control Officer in the person of
CRISTOPHER CONTRERAS who reviews/ control the Quality of products produced prior to its
deliveries. Market Officer is in charge of receiving the matured products for processing and
packaging as well as its deliveries to the market that is agreed by the company with their established
buyers. Mr. Contreras is indeed familiar with the US Market protocol having come and a US Citizen
himself.
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All financial transactions and papers are filed, organized and recorded by a Bookkeeper who reports
regularly side by side with the Admin-Cashier in its business office. Every end of the month she
prepares Financial statements and have this documents audited by a Public Accountant bi-annually
to check its accuracy and veracity and for completion with reporting requirements like the BIR and
other funding agencies. Qualification for hiring: Accountancy graduate with at least 2-year
experience on Bookkeeping.
VI. TECHNICAL ASPECT
A. Brief Project Description
History in the Philippines showed infestation of white spot disease and other diseases among
production of tiger prawns in the country despite the good market for this product. In the past
years, production had abruptly declined amid this technical problems. With such technical
failure, research centers in SEAFDEC and BFAR where made purposely to prevent the attack of
said deadly disease and gain back prawn production in the Philippines. Described below are the
recommended measures/ steps in producing these tiger prawns incorporating re-circulation or
low-discharge of its water.
The low-discharge and the closed re-circulation systems are basically similar as the farm divided
into a number of separate units: reservoir ponds, grow-out ponds, and sedimentation (also
called treatment, tail or settling) ponds.
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The difference is that in the former system, a small amount of the water is discharged from the
grow-out pond and released to the sea after passing through the treatment pond. In the latter,
the effluent of the grow-out pond is reused or recycled after passing through the treatment
pond. In the closed-recirculation system, water is fully re-circulated by pumping it twice, first
from the reservoir to the grow-out pond and second from the sedimentation pond to the growout pond. In the low-discharge system, water is pumped only once from the head reservoir to
the grow-out pond.
The low-discharge and closed re-circulation systems include prevention of diseases and removal
or reduction of organic wastes, harmful bacteria and other pollutants from fouled water. These
systems are environment-friendly because they integrate reservoirs, sedimentation ponds, crop
rotation, probiotics, life support systems, bio-manipulators, bio-filters ad sludge collectors.
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B. Basic Components of the Improved Pond Systems with the required Machinery and
Equipment
1. Grow Out Ponds
Generally grow out ponds cover about 50-75% of the total pond facility of intensive shrimp.
They come in different
configurations but the most
common is either square or
rectangular, each 0.5-1.0 ha
in area. Grow-out ponds may
have earthen, concrete or
plastic-lined dikes. The
shrimps are grown from fry to
marketable size at stocking
densities of 20-60 fry/m2. The
dikes, gates and canal
systems are designed and
constructed to hold
minimum water depth of 100
cm; a 150 cm water depth is ideal.
Model shrimp farms in the Philippines and Thailand recommend small, easy to manage
grow-out ponds, 0.25-1.0 h in area with reservoir ponds, 0.08-1.0 ha in area. Pond
compartments must have independent water supply and drain canals to facilitate water
management. This double gate system may be made of wood, concrete or PVC standpipes.
Catwalks are installed at strategic points in the pond to facilitate the monitoring of stocks
and feed consumption. These maybe made of bamboo, wood or concrete.
Feeding trays (0.75-1 sq.m.) are installed about 4-8 in a 0.5 – 1.0 ha pond. The trays are used
to monitor feed consumption of the shrimps.
2. Reservoir Pond with Bio-Manipulators and Green water
The reservoir pond should be at least 25% of the area of the grow-out pond. All incoming
water is temporarily stored n this compartment for at least one week before it is used in the
grow-out ponds. If only one pond is available for use as reservoir, its better to subdivide it
into two compartments that can be used alternately. It is in the reservoir pond where the
desired salinity of the water is controlled or adjusted. Reservoirs also help reduce if not
totally eliminate other crustacean hosts and carriers f pathogens. The water pumped into
the grow-out pond passes through a filter box to prevent the entry of extraneous species.
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The reservoir is stocked with bio-manipulators : all male tilapia, milkfish or mullet. Biomanipulators have been found to help condition the water and produce green water. Biomanipulators are stocked at recommended rate of 5,000-10,000 fish/ha or an equivalent
standing biomass of 1.5 to 2.5 tons/ha.
3. Settling pond with baffles and bio-filters
The settling pond (also called sedimentation, tail reservoir or treatment pond) is used to
hold the effluent water from the grow-out pond so that dissolved nutrients and suspended
solids maybe minimized before releasing them back to the water source. The main drain
canal, which may also serve as the sttling pond, shuld be wide and deep to have efficient
drainage. The pond should have a control gate to prevent effluents from flowing out until
most of the suspended solids have settled.
Water from the grow out pond is treated through a baffle system installed in the settling
pond. Baffles made of plastic sheets or fine mesh nets enhance mechanical filtration and
sedimentation as water passes through in zigzag fashion. The water slows down and
suspended solids settle before reaching the filter box.
To minimize the concentration of dissolved nutrients in the effluent water, biological filters
such as oysters, mussels, and seaweeds (Gracilaria and filamentous green) are hanged in
the settling pond.
A filter box fitted with a 2hp submersible pump is installed at the end of the pond for water
circulation. The pump is operated for 6-12 hours a day about 3 times a week depending on
the water quality.
4. Sludge Collectors
a. Center Sludge Collector
This is a double walled enclose (10 x 10 x 1.5 m) installed at the middle of the grow-out
pond occupying about 5% of its area. The cicular water flow aided by the long-arm
paddle wheel collects the uneaten feeds, feces and other sediments at the center onds.
The net separates the shrimps rom the sludge.
The sludge collector has an inner coarse mesh net (5mm) and a outer fine mesh net
(1mm) embedded about 50 cm deep into the pond bottom and supported by a bamboo
frame. The outer fine mesh net is removed after 60 days when the shrimps have
become juveniles – big enough not to get inside the sludge collector. Tilapia, milkfish or
mullet are stocked in the sludge collector to feed on the accumulated wastes.
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b. Corner Sludge Collector
Sludge collectors made of the same materials are likewise installed in all corners of the
pond. These corners are considered dead spots where sludge accumulates. Biomanipulators are also stocked in the corner sludge collectors to feed on accumulated
wastes.
5. Power Supply
An intensive shrimp farm’s power should have the capacity to supply the electricity needed
to operate the lights, paddle wheels, electric pumps, blowers and other equipment
necessary at all times. Generally, a 3-phase system I referred to minimize power
consumption. A standby generator should also be available to operate the paddlewheels
and pumps during power interruptions.
6. Aeration systems
Mechanical aeration (fuel or electric-driven) of the pond water is important and is already a
common facility in intensive shrimp farming. It improves shrimp production efficiency by
keeping dissolved oxygen at optimum levels. Efficient water circulation prevents
stratification and lessens the accumulation of nitrogenous compounds in spots where sludge
accumulates. Aeration also keeps organic particles suspended in the water column and
creates heterotrophic microbiological communities that purify the water and mineralizes
dissolved organic matter.
The use of long arm paddlewheels is recommended in intensive shrimp farms with square or
rectangle compartments 0.5-1.0 ha in area. Long-arm paddlewheels can cover a wider
surface area and can adequately aerate and circulate the water current that brings the
organic sludge to the center of the pond bottom, leaving the peripheral areas clean from the
shrimp to dwell on and feed.
The bottom aeration system is also recommended as an alternative to paddlewheels in
intensive shrimp farms. It increases the dissolved oxygen concentration in the pond bottom
and the entire water column. The system consists of PVC pipes (10mm diameter) perforated
with a row of tiny downward facing holes and evenly lid out on the entire pond bottom at 210 intervals. The pipes are connected to a 2 hp ring blower.
7. Water Pumps
When the reservoir pond cannot be filled with water from a nearby source by tidal action, it
is necessary to use electricity or fuel driven water pumps, whichever is available and cost
effective. Water pumps come in various specifications and are essential components of
intensive shrimp farms.
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8. Filter Boxes
Filter boxes installed in the reservoir pond are a improvement over the usual filter nets or
bags. With locally available materials, the filter box is easy to fabricate ad operate. The box
is made of plywood, perforated at the sides and bottom and filled with layers of sand, fine
gravel or ground up oyster shells. A submersible pump is set inside the highest portion of
the filter bed that draws water out into the grow out pond. When properly installed, the
filter box effectively eliminates unwanted species of fish and crustaceans that may b carriers
of shrimp diseases. In the closed re-circulation system, another filter box with an
independent pumping system is installed in the sedimentation pond to recycle the treated
water back to the grow-out pond.
9. Monitoring Equipment
It is important to be equipped with basic tools of the trade such as refractometer (to
measure salinity), a thermometer (to measure temperature), a secchi disk (to measure
transparency, a pH meter to measure acidity, and a dissolved oxygen (DO) meter. These
monitoring equipment are necessary so that water quality in the pond can be maintained at
optimum levels.
C. Pond Preparation
Purpose: in extensive and semi-extensive culture systems it aims to eliminate pests and predators as
the growth of natural food through fertilization. In contrast, intensive ponds rely almost
completely on artificial feeds so that pond preparation concentrates only on pest and soil
conditioning to eliminate harmful metabolites.
1. Cleaning of Pond Bottom
-removal of black soils/sludge; push the sludge to the canal where it can be treated
-placement of lime and probiotics
2. Drying of pond
3. Repair of pond facilities while drying
4. Eradication of pests and predators
-application of Teaseed (poisoning of predators)
5. Flushing and flooding
6. Leveling of pond bottom
7. Sun drying (10 days or more; should not be <20% moisture content
8. Tilling/plowing
9. Liming 1-1.5 MT/ha lime
10. Flooding 30-70 cm (assuming everything is under control)
11. Water cultivation (plankton culture)
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12. Stocking, water at 100 cm
-Note: Pond must be ready 5-7 days prior to stocking.
Mechanical
The most important preventive and practical action against pests and predators is mechanical.
This is done by draining and drying of the pond, and filtration devices for incoming water.
Complete draining of the pond (with the supply gate soil-sealed) and drying for around one
week or until the bottom cracks. Drying also mineralizes organic matter making nutrients
available and reduces production of H2S and other harmful wastes.
Organic Pesticides
1. Derris or Tubli. The active component of derris root powder or solution is rotenone, a white
odorless crystalline substance which acts as inhibitor of cellular respiration in fishes.
2. Tobacco Wastes. Tobacco dusts, shavings, talks and other wastes serve not only as an effective
pesticide (selective for finfish, like tubli) but also as pond fertilizer. To eliminate unwanted fish
and snails, apply 200-400 kg/ha.
3. Teaseed Cake powder. Teaseed cake powder is a by product of tea (Camellia sp.), its poison
saponin is also selective for finish. The effective level to eradicate predatory fishes is
approximately 1 ppm. Levels up to 1 ppm will not kill prawns, shrimps and crabs.
Chemicals
1. Ammonium Sulfate. 10-20g/m2 + CaO at 50-100 g/m2 just before addition of ammonium
sulfate. Higher pH increases the proportion of NH3 thereby increasing toxicity. Lime + 21-0-0 =
NH3
2. Sodium hypochloride (bleaching solution like Clorox, Purex etc.)
3. Calcium hypochlorite (Chlorine powder)
Lime. Lime is a caustic substance, white when pure, obtained by calcining limestone and other forms
of calcium carbonate. Pure Lime, also called quicklime, burnt lime, and caustic lime, is composed
o calcium oxide (CaO) but commercial preparations usually contain impurities, such as the oxide
of aluminum, iron, silicon, and magnesium. When treated with water, lime liberates large
amount of heat and forms calcium hydroxide, sold commercially as white powder called slaked
lime or hydrated lime.
Benefits of Lime.
 Liming adds Calcium (Ca), as essential plant nutrient
 Neutralizes acid soil conditions thus increasing the pH
 Total hardness ad total alkalinity are increase, and pH buffer system is enhanced
 Addition of Ca is directly beneficial to crustaceans
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



Decomposition in pond mud is speeded up
Liming may counteract detrimental effects of certain excess elements and aids in neutralizing
harmful effects f organic and inorganic acids
Liming helps to flocculate clay in muddy water
Liming by its caustic, toxic action, aids in the control of parasites and diseases
Water Preparation
Water from the reservoir is pumped into the grow-out pond and fertilized to achieve a desirable
plankton bloom under aerated condition. This is done at least 3-5 days before stocking.
Procedure:
1. Install 4-units of electric or fuel-driven paddlewheel aerators per hectare. Use paddlewheels
with a minimum of 4 impellers/unit. Position them 5 m from the dike and about 40m from
each other to create a circular current.
2. Fill the grow-out pond with filtered water from the reservoir by gravity or by pumping.
3. When the water depth is about 30 cm, apply tea seed powder to kill predators and
competitors at 50kg/ha during sunny days or 100 kg/ha during cloudy days. Remove dead
animals and fill the pond with water from the reservoir pond to at least 100 cm deep.
4. Apply dried chicken or cow manure at the rate of 300 kg/ha together with urea (45-0-0) at
18kg/ha by the ‘tea bag’ method. To make a ‘tea bag’, fill a perforated sack (such as feed
sack) with 25 kg of dried manure mixed with 2 kg urea. Close and tie the sack securely then
submerge it while suspended from a bamboo pole. Install the ‘tea bags’ in strategic points,
preferably in front of each paddlewheel. ‘Tea bags’ gradually release nutrients to the pond
water, resulting to a brownish green hue in about 5 days. This color indicates a good
combination of zoo and plankton in the water. Remove the ‘tea bags’ as soon s a stable
plankton bloom is obtained.
5. If plankton does not bloom replace 20-30% of the pond water and apply urea again at 10-15
kg/ha. If an adjacent pond has a good phytoplankton bloom, use water from this pond to
replenish and inoculate the other pond.
Experience in Thailand showed that one week after applying ta seed cake at 25 kg/rai (=156
kg/ha), water transparency increased by more than 10 cm. If transparency is less than 80 cm
within 3 days, it is no longer necessary to add fertilizer because the nutrients in the water
are enough or plankton growth. When the desired water color is not obtained, inorganic
fertilizers re added to accelerate phytoplankton growth. The fertilizers to be used ad their
application rates are:
Urea (40-0-0)
: 2.0 kg/rai (=12.90 kg/ha)
Phosphate fertilizer : 1.5 kg/rai (=9.40 kg/ja)
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6. Stock the net cages inside the sludge collector with tilapia, milkfish, or mullet to a standing
biomass of at least 2,000 kg/ha to produce adequate green water.
Water having the following physic-chemical characteristics is recommended for stocking:
DO
-
>4 ppm
Ammonia
-
<0.1 ppm
Salinity
-
25-30 ppt
pH
-
7.5 – 8.5
Temperature
-
28-32C
Alkalinity
-
above 80 ppm
Transparency
-
35-45 cm
Water color
-
Brownish green
Stocking and Acclimation
Shrimps are most vulnerable during the post larva or fry stage. Even with the best pond preparation, the
fry may die during stocking if they are not health, if the stoking time is not ideal, or f the quality of the
transport water is very different from the pond water. The stocking density should be 20-60 fry per
sq.m.
When buying fry, make sure that they are of good quality with the following characteristics:
a. Swim against the current when the basin water is stirred and react to tapping and to passing
shadows;
b. Swim horizontally and not vertically as if gasping for breath;
c. Have straight bodies;
d. Have uniform sizes;
e. Measure at least 12mm in length at PL stage;
f.
Have clear abdominal muscles;
g. Have full gut;
h. Have a gut to muscle ratio 1:4;
i.
Certified free of Monodon Bacoluvirus and white spot virus by a diagnostic laboratory with
Polymerase Chain Reaction (PCR)
Schedule the stocking early in the morning when the temperature is 27-28C. Prepare the basins,
pails, and scoops prior to the arrival of the fry. Install two survival nets (1 x 1 m) in every pond that
will be stocked with fry.
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Procedure for Acclimation
1. Allow the unopened plastic bags containing the fry to float in the pond where they are to be
stocked for 30-60 minutes.;
2. Select 2-3 plastic bags for counting and pour the contents of each bag into a basin. Count the fry
in each basin and compute the average of three counts.
3. Check the temperature, salinity, pH o the transport water every 15 min. As a guide, allow 15
min. of acclimation time for every 1C, 1 ppt and 0.1 unit difference in temperature, salinity and
pH respectively.
4. Open the rest of the plastic bags and gradually add or splash pond water into the bags.
5. Continue adding pond water slowly until the salinity, temperature, and pH of the water inside
the transport bags and the pond are the same.
6. Stock 100 fry in each survival net;
7. Allow the rest of the fry to swim out of the bags.
Always use the widest difference as the basis for determining acclimation time. If the temperature
difference is 2C but the salinity difference is 4ppt and pH difference is 0.1 unit the total acclimation
time shall be: 15 x 4 = 60 minutes.
Do not extend acclimation time beyond 2 hours because this will stress the fry. This means that if
the pond salinity is more than 8 ppt different from the hatchery salinity, its necessary to preacclimate the fry at the hatchery prior to packing and transport. Request the source hatchery to
acclimate prior to transport the fry in water with the same salinity as the pond water where it will
be stocked.
Check one survival net after 15 days and second after 30 days. Compute the average of the two
counts and use it to estimate the shrimp survival in he pond.
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D. Feeding
Feeding habit and nutritional requirements of prawns
In the extensive culture system, prawns relies almost completely on natural foods that grow in
the pond. These may either plankton (microscopic phytoplankton or zooplankton) or higher
aquatic plants. The most important species of the higher aquatic plants are “digman” (Najas
graminea) and “kusay-kusay” (Rupia martima). Occasional supplementary feeding may be
needed when natural food production is low. As the stocking rate or biomass increases, the
amount of supplementary feeding also increases.
Prawns are nibblers and slow feeders. They take the food with their pinchers and bring this to
their mouth and slowly chew the feed.
At present, most of the nutrient requirements of prawn are clearly defined. Thse nutrients are
protein, carbohydrates, fat, vitamins and minerals. Protein level of 35-50% is required depeding
on the age of prawns for growth. When fats and carbohydrates in the feed are not enough, the
protein component is used for heat and energy instead and not for the growth. Vitamins and
minerals are important for regulating body processes. The vitamins are necessary for proper
utilization of proteins, carbohydrates and fats. Together with minerals like calcium and
phosphorous are necessary for the formation of exoskeleton of shell. All of these nutrients are
interrelated that they have to be incorporated in the diet to be fully utilized by the body.
Feed is literally the fuel that powers production of the pond. If inadequate feed is available
production suffers. As the stocking density is increased to progressively me intensive levels, the
contribution of food chain organisms to the diet diminishes. This means that the quantity of the
prepared feed would increase to maintain good nutrition and growth.
Feeding Management Scheme of Prawn
Successful prawn farming is dependent on many factors, among which are the proper pond
fertilization and stocking procedures, water management and the most important is feeding
management. At different stages, prawns are fed with specific amount and type of feed to
satisfy their nutritional requirement.
The objectives of feeding management are:
1.
To prevent overfeeding of the stock which can cause serious water problem; and,
2.
To avoid underfeeding as this can reduce income due to slow growth of prawn and
longer culture period. Thus, it is important that the prawn grower should know the following:
Feeding rate and method – the amount of feed daily ad is based on percentage of the
16
body weight of the prawn. Computation of feeding rate is also based on survival and
actual feed consumption.
Table below summarizes the estimated growth, feeding rate and survival. Feeds
are broadcasted throughout the pond and a certain amount is placed on the actual xperience
of the grower. The usual number ranges from 8-10 trays per pond regardless of the area. The
consumption of actual feeding is observed within one to two hours after feeding.
Target growth, survival and feeding rates of prawn in semi-intensive system for 50,000 fry/ha.
Culture
period
(days)
7
15
30
45
60
67
72
80
86
90
97
105
112-120
120
days
Est. growth
(g)
0.03
0.24
1.70
5.90
10.50
13.40
15.00
18.20
21.00
23.00
27.00
31.00
36-40
Total
Survival
100
100
95
95
90
85
85
80
80
75
75
75
75
% Body wt of
feed
daily
30
20
15
10
8
8
6
6
5
5
4
4
3
Est. Feed
Consumpti
on kg
1.70
11.56
108/121
300
499/799
292
209
328
257
170/1,256
292
348
644/1,284
3,460 kgs
No. of bags in
25-kgs
4.8
31.8
50.29
51.35
138.24
bags
17
E. Manpower Requirement
Work Program Activities
POND PREPARATION:
Improvement of Dikes:
Main Dikes (2 - 4m-base) x 2mhi
Secondary Dikes (1 – 1.5 x 1.5m
Main gate concrete (16 x10 ft x 4m ht. w/
1.3m mouth)
Secondary gate wooden
Wooden slabs/screen
Application of Lime
Application of Organic and Urea Fertilizer
CARE AND MAINTENANCE:
Stocking of fry
Feedings (monthly pay @ P5,000) and other
maintenance
Security guard (monthly pay @ P5,000)
MARKETING:
Harvesting
Packing/Processing
Transporting
Requirements
Price
Labor for 25 meters/ 1
station
P 5000 x 16 stations
25 m x 3000 x 12 stations
Labor
80,000
Labor
Labor
10-Labor @ 250 x 3 days
10-Labor @ 250 x 3 days
20,000
10,000
7,500
7,500
4 – Labor @ 250 x 3 days
4 – months x 2-persons
3,000
40,000
4 – months x 1- night guard
20,000
10-Labor @ 250/day x 5 days
4 – Labor @ 250 x 3 days
2- Labor @ 250 x 2 days
12,500
3,000
1,000
36,000
25,000
18
F. BANGUS PRODUCTION
Milkfish or Bangus is the pioneer among the priority
commodities. It employs close to 300,000 fish
farmers, entrepreneurs, processors and workers. It
comprises 160,000 mt or 6% of total fish production
of 2.7 million mt. As indicated above, about US$3.4
million worth of milkfish products had been exported.
Roughly the entire milkfish industry is now worth Php
16 billion (in terms of current value of fresh harvest)
(Drilon, 2005).
Milkfish is the major species in brackish water fish farming and mariculture. At present, the
mariculture area being used is only 0.026% of the available marine area of 26.6 million ha. If only
26,000 ha (0.10% of available area) could be used productively for mariculture, this would yield
about 624,000 mt of finfish per year (based on 24 mt/ha per year production from fishpxPs and
cages).
To increase the production areas and in support of the development and utilization of mariculture
resource, the government has established a number of sites for mariculture parks or marine/sea
cages in the country. For instance, in Eastern Visayas, 20 potential sites have been identified
covering 10,000 ha for milkfish mariculture. Of these, nine are now operational one of which is
located in Basey, Samar. Two other Mariculture Parks are located in Samal Island, Davao and Sto.
Tomas, La Union.
The Mariculture Park is not limited to the production of milkfish. This opportunity includes the
production in cages of high value species for local market and export, such as: groupers,
pompano, sea bass, snapper and siganids. However, dependable supply of fish seeds for stocking
the cages is still a major concern. Except for sea bass wherein hatchery technique has been
developed, the other species still depend from the wild for its stock.
The management of Mariculture Parks employs environment-friendly aquaculture systems (strict
control on the stocking densities in cages, feeding management, proper spacing of cages, water
quality monitoring of sites, etc). Environmental monitoring of production areas has been initiated
in Region I and other parts of the country in order to avoid fish kills (such as the 2001 incident in
Anda-Bolinao, Western Pangasinan) in the future.
Another support of the government to the industry is in expanding the bangus breeding and
hatchery facilities nationwide, to minimize dependence on fry importation and gathering from the
wild. To date, aside from the Central Milkfish Hatchery in Dagupan, three satellite hatcheries
were established in Calape, Bohol, in Puerto Princesa, Palawan and in Naujan, Oriental Mindoro.
Further, the government has helped in developing or upgrading the facilities of selected private
hatcheries, as well as those operated by LGUs and State Colleges and Universities.
Milkfish production this quarter increased by 1.66 percent against same quarter of last year (see
figure below). The increment was realized from brackishwater fishpond, fish cage and freshwater
fish pen.
19
The production increase by 0.11 percent from brackishwater fishpond was attributed to more
supply of fry/fingerlings and increased area harvested due to rehabilitation of ponds that were
damaged last year. Moreover, some fishpond operators harvested their stocks earlier in
anticipation of the rainy season when overflowing of ponds occur. On the contrary, Bulacan, a
major milkfish producing province, experienced a production shortfall of 17.44 percent because
some operators decided to delay their harvest during the 4th quarter. The farmers observed
stunted growth of milkfish due to acidic water caused by the settling of feeds at the bottom of the
ponds which when mixed with rain water, become acidic.
Production of milkfish in brackishwater fish cage and freshwater fish pen rose by 105.84 percent
and 20.06 percent, respectively. Agusan del Norte contributed to the increase in milkfish
production from fish cages. It was observed that operators had installed more fish cages in order
to take advantage of the increasing demand and high prices. Harvest from freshwater fish cages
in Rizal likewise rose by about 20 percent due to expansion in harvest area. Moreover, farmers in
this province utilized commercial feeds which brought about higher yield.
Milkfish production in brackishwater fish pens declined by 0.90 percent, freshwater fish cage by
21.71 percent and marine fish pen and fish cage by 2.89 percent and 1.20 percent, respectively.
Some fish pen and cage operators from the topmost producing province of Pangasinan had lessen
their stocked area in anticipation of the rainy season when overflowing of water ponds occur. In
Bolinao, Pangasinan, some stocked milkfish were affected by white spot itch, a disease
characterized by the melting of gills. It is caused by cellited parasite ichthyopthrius which could
have existed due to the presence of too much ammonia coupled with very hot temperature in fish
cages and pens.
Milkfish production in freshwater fish cages from Lutayan Lake in Sultan Kudarat dropped by 24
percent due to the shifting of culture from fish cage to fish pen, as the latter is less costly to
maintain.
AQUACULTURE: MILKFISH PRODUCTION OF TOP PRODUCING PROVINCES, BY CULTURE
ENVIRONMENT/ TYPE OF AQUAFARM, PHILIPPINES, JULY - SEPTEMBER 2001 – 2003.
Sources:
Bureau of Agricultural Research
http://www.bas.gov.ph/downloads_view.php?id=33
20
VII. MARKETING ASPECT
A. The Products
Tiger Prawns
a large edible prawn of the
genus Penaeus with dark
bands across the body, fished
commercially in the Indian and
Pacific oceans.
The prawns have sequentially
overlapping body segments
(segment one covers the
segment two, segment two
covers segment three, etc.),
chelate (claw like) first three
leg pairs, and have a very basic
larval body type.
Milkfish (Bangus)
Milkfish definition, a
herringlike fish, Chanos
chanos, of warm ocean
waters in southeastern Asia.
Milkfish is the major species
in brackishwater fish farming
and mariculture. At present,
the mariculture area being
used is only 0.026% of the
available marine area of 26.6
million ha
Mudcrabs
The crab species Scylla
serrate, otherwise called as
the “giant crab” is the biggest
and most important member
of the family of edible crabs
in the Philippines. Mud crab,
or alimango, is considered a
delicacy and has become a
popular fare in seafood
restaurants. It is sought for its
very tasty “aligue” or ripe
eggs in the ovary.
Crabs abound in estuaries,
mangroves, swamps and tidal
waters in Samar, living both
as a scavenger and a cannibal.
In Guiuan, therefore, some
mudcrabs grow wildly which
led to the production of thin
crabs and crablets.
B. SUPPLY AND DEMAND
B.1 Current production status of Prawns in the Pacific :
Due to its high profitability, penaeid shrimp farming has been the focus of commercial development
in several Pacific islands over the past 30 years, with varying degrees of success. Its development has
been slow due to the lack of suitable technologies, traditional skill in aquaculture, capital,
infrastructure and R&D support from governments. In 1999, 39 and 13 tonnes of Penaeus monodon
were produced for the export market in Fiji and Solomon Islands respectively (FAO Fisheries
Statistics, 2001). Currently, there are three grow out farms and hatcheries in Fiji while two farms in
Solomon Islands still rely on seeds imported from Australia. 1,906, 43 and 25 tons of Litopenaeus
21
stylirostris were commercially farmed in New Caledonia, French Polynesia and Guam, respectively,
in 1999 (FAO Fisheries Statistics, 2001). These large enterprises mainly applied technology
developed in France and Tahiti. Penaeid farming technology is sufficiently well developed that the
Pacific Islands can adopt from other countries the most appropriate technologies for the region.
Marketing. To avoid high competition from the major prawn producing countries where production
and shipping costs are less, the Pacific Islands focus on producing high value eco-labelled, clean and
green products. L. stylirostris is tolerant of high salinities, and is therefore suitable for eco-labelling
because its farm sites can be located outside mangrove areas, where the farm effluent discharges
will produce lower organic loads because of the stronger flushing effects in more exposed open
waters. The freshness of green products could be promoted locally for the tourist market. A live
prawn market in domestic Chinese restaurants can double the price, and this should be developed
where possible.
B.3 Demand for fish
The country's total fish demand equals total fish supply, which is allocated for three main uses:



Domestic human consumption;
Exports;
Non-food use.
Most of the total demand for fish is allocated for domestic consumption in the Philipines, followed
by export and non-food use. Total demand for fish grew moderately from 1979-97 at a yearly rate of
3.53%. On the average, total demand for fish increased considerably from 2.04 million t in 1979-88
to 2.87 million t in 1989-97. However, the share of domestic human consumption declined from 77%
to 71% during those periods, whereas the share of export to total demand for fish increased
substantially from 14% in 1979-88 to 25% in 1989-97; and non-food use share stabilized at 9%.
These figures point to a growing competition between fish demand for export versus domestic
human consumption. If this trend in demand for fish continues, Filipinos can expect to have fewer
fish available in the near future.
Among the fish species in demand, the ten most consumed species, in order of importance, were
milkfish, roundscad, sardines, frigate tuna, anchovies, mackerel, tilapia, slipmouth, big eye scad and
carps/other freshwater fish. Of these ten species, three were products of aquaculture, one from
brackish-water (milkfish) and two from freshwater cultures (tilapia and carps/other freshwater fish).
The survey implies that fish products from freshwater aquaculture play a crucial role in meeting the
demand for fish in the country.
A recent study on consumption patterns for fish compared three levels of consumption:
consumption of fish producers, of non-producers (rural) and of those in urban centers (Legaspi et
al., 1997). The results show that households of tilapia producers consumed more fish per annum
compared to non-producers in rural and urban areas (Table 17). This is no surprise, since tilapia
producers have direct access to fish in contrast to non-producers. Because the survey sampled more
people from rural areas involved in tilapia farming, estimated per caput fish consumption was
somewhat higher than the national average. It is also interesting to note that tilapia is slowly
22
replacing milkfish as the major species consumed in the Philippines. Earlier studies had detected the
substitutability of tilapia for milkfish (Gonzales, 1985). Milkfish accounted for only about 12% of
total fish consumed, whereas tilapia accounted for about 40%. Again, these results are only useful as
indicators of a trend, rather than indicators of absolute proportions of tilapia or milkfish to total
consumption of fish, because samples were taken from tilapia-producing areas. Nevertheless,
current dietary patterns clearly suggest that tilapia producers tend to consume more fish than nonfish producers, since they have direct access to fish and thus, presumably, enjoy a healthier diet.
Supply-Demand Gap
C. Pricing
MARKET PRICE TREND
Average Wholesale Prices of Selected Fish Species, Philippines, 2001 – 2003 and in US Dollars
(Pesos per Kilogram)
SPECIES
Indian mackerel
(Alumahan)
Milkfish (Bangus)
Tiger prawn (Sugpo)
Tilapia
Frigate tuna (Tulingan)
Blue crab (Alimasag)
2001
60.3
66.69
341.36
45.8
48.01
63.15
In Peso
2002
61.53
61.83
329.06
43.53
46.84
63.14
2003
60.52
59.87
328.69
44.01
46.55
72.12
In USD
2001
2002
2003
1.39
1.43
1.40
1.55
7.93
1.06
1.11
1.46
1.43
7.65
1.01
1.08
1.46
1.39
7.64
1.02
1.08
1.67
Average Retail Prices of Selected Fish Species, Philippines, 2001 – 2003and in US Dollars
(Pesos per Kilogram)
SPECIES
Indian mackerel
(Alumahan)
Milkfish (Bangus)
Tiger prawn (Sugpo)
Tilapia
Frigate tuna (Tulingan)
Blue crab (Alimasag)
2001
70.72
82.5
351.29
59.17
57.3
97.96
In Peso
2002
72.69
78.92
360.55
57.71
57.96
100.33
2003
72.9
75.24
360.49
58.8
60.05
106.52
2001
1.64
In USD
2002
1.69
2003
1.69
1.91
8.16
1.37
1.33
2.27
1.83
8.38
1.34
1.33
2.33
1.74
8.38
1.36
1.39
2.47
23
Price Influence and Seasonality on Mud Crabs
There are many factors affecting the price of mud crab in both the domestic and international
markets, particularly as the supply of crab is mainly dependent on wild sources. The supply is
affected by the season which is defined by the government. During December to February and May
to June, crab fishing is banned in order to save the broodstock and prevent overexploitation.
Supplies of exported crabs were also reported by some traders to experience some sort of
seasonality during Chinese New Year and Christmas time when the international consumption
increases greatly, which ultimately affects the price of the crabs in the international market. Traders
and the fatteners also reported that they can earn higher profits especially during this time.
On the other hand, demand in the local or domestic market is seen as steady throughout the year.
Sometimes the price is also related to fluctuations on the international market, especially for
male crabs and gravid female crabs. Any price increase in the international market will
ultimately increase the price in the domestic market.
In addition, when the interviewees were asked about the influence of marketing operations over
the price, the majority of the collectors and farmers claimed their depot owner had the most
influence over price, while conversely, the depot owners felt that suppliers and exporters had
the greatest influence over the price paid.
d. Place
This Fishpond project of the proponent is located in Sta. Margarita, Samar, approx. 7-kms
away from Calbayog City. Total inventory of fishpond in Sta. Margarita is 2,500 has where the
operators is recently organized into one association named and registered with the
Department of Labor and Employment (DOLE) as “United Fishpond Operators of Sta.
Margarita Association.” Mr. Diomangay is a director of said association.
Sta. Margarita is blessed with sandy-clay loam soil suitable for fishpond operation. It holds
water well in the pond when closed with gates. There grows a lot of mangroves along its
shorelines as well as in the rivermouth. Thus, best for aquaculture whether it be for shrimps,
crabs and fish.
The nearby City of Calbayog, where the proponent resides and do other business, is complete
with facilities for processing, packaging and transport of goods. It has an airport and ports,
hotels, a lot of supermarkets and the incoming mall of Robinsons. Communication is equipped
with telephone lines, wireless signals and internet. The national highway from Manila to
Davao uses this road from Calbayog to Sta. Margarita and vice versa. Thus, an all-weather
concrete road. Shipment from Calbayog therefore may utilize the 3-options: whether by air,
sea and land.
Samar is strategically located at the heart of the country. It is bounded on the north by Luzon
and the City of Manila where market for seafood flourished. On the south is the island of
Leyte and Mindanao where supplies for feed production are available. On the west also lies
the Queen City of Cebu where tourists also stops and seeks for this seafood products. In every
which way, there exist market for this seafood products around Samar!
24
c. Promotions
It will be the BOCO Trade that will act as consolidator and distributor in the US Market duly tasked in
promoting the Philippine seafood products to the target city in New York and other markets.
VIII.
FINANCIAL ASPECT
A. Project Cost/ Investment
Capital Outlay
Without
With
Biosecurity Biosecurity
100
Life
Span
hectares
(Years)
Farm facilities
12,000
12,000
1,200,000
6
Pond dikes,
gates and
canals
40,000
60,000
6,000,000
3
Biosecurity
-
12,000
1,200,000
5
Equipment
24,800
50,000
5,000,000
10
Sub-total
76,800
134,000
13,400,000
Annual
depreciation
cost/yr
Salvage value
(10%)
Monthly
Depreciation
Depreciation
200,000
2,000,000
2,700,000
-
13,400
294,000
225,000
0
245,000
500,000
2,940,000
2,940,000
7,680
240,000
B. Schedules/ Technical Assumptions
Cost Items
Area (ha.)
Total stocks (pcs)
Date harvested
stocking density/ sq m
Stocks per ha.
SEAFDEC
Test
0.8786
Kingdom
Prize
Target
1
100
219650
50,000
9/19/2000 projected
25
5
10000
5,000,000
projected
5
10000
25
DOC at harvest
ABW (kg)
Biomass (kg)
survival rate (70%)
Av. Price per kg (Php)
Gross Sales (Php) per
cropping
139
0.255
4465
0.797
308
1,375,474
150
0.04
150
0.05
0.7
380
0.7
360
1,064,000
63,000,000
C. Cost and Returns
Pond Preparation:
Lime (40 bags/ha x price 150)
6,000
600,000
Organic fertilizer(14 bags@350)
4,340
434,000
Inorganic Fertilizer (14-14-14)
4,400
440,000
Labor- Dikes/ Watergate Maintenance
Add: Inputs
50,000
5,000,000
Fry at Php 0.35 each
Feeds: Post Larvae, 2
bags
17,500
1,750,000
2,860
286,000
PL Starter, 6 bags
8,280
828,000
Starter, 12 bags
16,260
1,626,000
Grower feeds, 16 bags
20,880
2,088,000
Finisher, 50 bags
64,000
6,400,000
Milkfish fingerlings
12,500
1,250,000
Probiotics, 6-kgs @ P1200/kg
7,200
720,000
Tea seed (4 bags @ P1,630)
Fish nets, per 100-m roll,
4
Subsistence: 4-bags Rice
6,520
652,000
8,100
810,000
Total Operating Expenses
228,840
22,884,000
Add: Admin/ OH Expense
60,000
6,000,000
-
26
Add: Management Fees
50,000
5,000,000
T O T A L EXPENSES
338,840
33,884,000
Net Income
725,160
29,116,000
Schedule of Loans
Principal loan
Term in years
25,000,000
3
Yearly Payment
8,333,333
Monthly Payments
694,444
Interest 5%/annum
1,250,000
Interest per month
104,167
27
Schedule of Feeding
Est.
growth
(g)
Survival
7
0.03
100
30
1.7
15
0.24
100
20
11.56
30
1.7
95
15
108/121
45
5.9
95
10
300
60
10.5
90
8
499/799
67
72
80
86
13.4
15
18.2
21
85
85
80
80
8
6
6
5
292
209
328
257
90
23
75
5
170/1,256
97
105
27
31
75
75
4
4
292
348
112-120
36-40
75
3
644/1,284
51.35
120 days
Total
3,460 kgs
138.24
bags
Land rental
Repair and
Maintenance
Salary and Wages
Depreciation
Interest (10 %)
Total Fixed Cost
Total Cost
% Body
Est. Feed
wt of
Consumption
feed daily
kg
No. of
bags
in 25kgs
Culture period
(days)
1000
100,000
50,000
5,000,000
60,000
6,000,000
2,940,000
Price/
Unit
Total
Price
PreStarter
4.8
1000
4,800
Starter
31.8
900
28,620
Grower
50.29
800
40,232
Finisher
800
41,080
114,732
312,032 13,940,000
312,032
28
D. Economic Indicators
Item Description
Income per year
ROI (%)
Payback period
Break-even price
Break-even production
Without Biosecurity With Biosecurity
563,368
43.65%
2.09
215.1
1,040.11
725,160
59.06%
1.57
191.85
6,714.59
E. Financial Investment Analysis (after 5 years)
Item Description
Gross Revenue
Investment Cost
Total Cost
Net Income
Net Present Value @ 12% (NPV)IRR (%)
Discounted BCR (Cost & Return Benefits)
Without Biosecurity With Biosecurity
9,448,500
(450,000@Y°)
6,453,160
2,995,340
1,501,876
124
4.74
16,198,500
(632,000@Y°)
10,071,890
5,494,610
3,355,006
188
6.95
Note: Original article were sourced from SEAFDEC AQD, re-posted on this site with permission.
29
PROJECTED MONTHLY INCOME STATEMENT
Cost Items
Sales (no.of units x
price)
Month 1
35000 x .04kg x P300 x
100-Ha
Month 2
0
less: Expenses
Lime (40 bags/ha x
price 150)
Organic fertilizer(14 bags@350)
Inorganic Fertilizer
(14-14-14)
72333
Labor- Dikes/ Watergate Maint.
Month 3
0
Month 4
0
Month 5
0
Month 6
114,732
114,732
72,333
Month 9
72,333
Month 10
Month 11
Month 12
63,000,00
0
600,000
72,333
Month 8
63,000,00
0
600,000
72,333
Month 7
72,333
Total
126,000,0
00
1200000
229,464
72,333
72,333
72,333
72,333
72,333
144,667
940,333
440,000
440,000
880,000
1,750,000
1,750,000
3,500,000
286,000
286,000
572,000
828,000
828,000
1,656,000
Starter, 12 bags
Grower feeds, 16
bags
1,626,000
1,626,000
3,252,000
2,088,000
2,088,000
4,176,000
Finisher, 50 bags
6,400,000
6,400,000
12,800,00
0
Milkfish fingerlings
Probiotics, 6-kgs @
P1200/kg
Tea seed (4 bags @
P1,630)
Fish nets, per 100-m
roll, 4
Subsistence: 4-bags
Rice
1,250,000
1,250,000
2,500,000
720,000
720,000
1,440,000
652,000
652,000
1,304,000
810,000
810,000
1,620,000
Fry at Php 0.35 each
Feeds: Post Larvae, 2
bags
PL Starter, 6 bags
-
-
-
-
-
-
-
-
-
-
-
-
Admin/ OH Expense
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
720,000
Management Expense
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
600,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
2,940,000
17,992,06
5
427,333
427,333
427,333
17,992,065
427,333
427,333
427,333
427,333
427,333
499,667
Depreciation Expense
Operating Expense/
month
245,000
427,333
Total Expense/
cropping
Net Income/month
Add: Net savings
19,701,39
9
(427,333)
(17,992,06
5)
(427,333)
(427,333)
62,572,66
7
19,701,39
9
(17,992,06
5)
(427,333
)
(427,333)
(427,333)
62,572,66
7
(427,333)
927,000
40,329,79
7
(499,667)
85,670,20
3
(927,000)
85,670,20
3
(427,333)
(18,419,39
9)
Net Income/ cropping
43,298,60
1
43,298,60
1
1
PROJECTED MONTHLY CASHFLOW STATEMENT
Cost Items
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Total
Capital, beginning
13,400,00
0
24,817,6
67
7,070,60
1
6,888,26
8
6,705,935
69,523,60
1
51,776,5
36
51,594,20
3
51,411,86
9
51,229,536
114,047,2
03
113,864,8
69
113,864,
869
Loans
25,000,00
0
Inflows:
Cash sales
Total Inflows
0
38,400,00
0
25,000,0
00
0
24,817,6
67
0
7,070,60
1
0
6,888,26
8
63,000,00
0
69,705,93
5
0
69,523,60
1
0
51,776,5
36
0
51,594,20
3
0
51,411,86
9
63,000,000
114,229,53
6
0
114,047,2
03
0
113,864,8
69
126,000,
000
264,864,
869
Outflows:
600,000
600,000
13,400,0
00
1,200,00
0
Organic fertilizer(14 bags@350)
Inorganic Fertilizer
(14-14-14)
72,333
114,732
114,732
229,464
Labor- Dikes/ Watergate Maint.
440,000
440,000
880,000
Fry at Php 0.35 each
1,750,00
0
1,750,000
3,500,00
0
Feeds: Post Larvae, 2 bags
286,000
286,000
PL Starter, 6 bags
828,000
828,000
572,000
1,656,00
0
Starter, 12 bags
1,626,00
0
1,626,000
3,252,00
0
Grower feeds, 16 bags
2,088,00
0
2,088,000
4,176,00
0
Finisher, 50 bags
6,400,00
0
6,400,000
12,800,0
00
Capital Outlay
13,400,00
0
Lime (40 bags/ha x price 150)
Milkfish fingerlings
72,333
72,333
72,333
72,333
72,333
72,333
72,333
72,333
72,333
72,333
144,667
940,333
2,500,00
2
1,250,00
0
1,250,000
Probiotics, 6-kgs @ P1200/kg
720,000
720,000
Tea seed (4 bags @ P1,630)
652,000
652,000
810,000
810,000
Fish nets, per 100-m roll, 4
Subsistence: 4-bags
Rice
-
0
1,440,00
0
1,304,00
0
1,620,00
0
-
-
-
-
-
-
-
-
-
-
-
0
Admin/ OH Expense
60000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
720,000
Management Expense
50000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
600,000
0
-
-
-
-
-
-
-
-
-
-
-
0
Operating Expense/
month
13,582,33
3
17,747,0
65
182,333
182,333
182,333
17,747,06
5
182,333
182,333
182,333
182,333
182,333
254,667
50,789,7
97
Net Cash
Inflow/Outflow
24,817,66
7
7,070,60
1
6,888,26
8
6,705,93
5
69,523,60
1
51,776,53
6
51,594,2
03
51,411,86
9
51,229,53
6
114,047,20
3
113,864,8
69
113,610,2
03
214,075,
072
3
Projected Monthly Balance Sheet
ASSETS
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Total
Cash
24,817,66
7
7,070,601
6,888,268
6,705,935
69,523,60
1
51,776,53
6
51,594,20
3
51,411,86
9
51,229,53
6
114,047,20
3
113,864,86
9
113,610,20
3
113,610,2
03
Investments
24,817,66
7
7,070,601
6,888,268
6,705,935
69,523,60
1
51,776,53
6
51,594,20
3
51,411,86
9
51,229,53
6
114,047,20
3
113,864,86
9
113,610,20
3
113,610,2
03
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
13,400,00
0
13,400,00
0
13,400,00
0
13,400,00
0
13,400,00
0
13,400,00
0
13,400,00
0
13,400,00
0
13,400,00
0
13,400,000
13,400,000
13,400,000
13,400,00
0
245,000
490,000
735,000
980,000
1,225,000
1,470,000
1,715,000
1,960,000
2,205,000
2,450,000
2,695,000
2,940,000
2,940,000
13,155,00
0
12,910,00
0
12,665,00
0
12,420,00
0
12,175,00
0
11,930,00
0
11,685,00
0
11,440,00
0
11,195,00
0
10,950,000
10,705,000
10,460,000
10,460,00
0
37,972,66
7
19,980,60
1
19,553,26
8
19,125,93
5
81,698,60
1
63,706,53
6
63,279,20
3
62,851,86
9
62,424,53
6
124,997,20
3
124,569,86
9
124,070,20
3
124,070,2
03
25,000,00
0
25,000,00
0
25,000,00
0
25,000,00
0
25,000,00
0
25,000,00
0
25,000,00
0
25,000,00
0
25,000,00
0
25,000,000
25,000,000
25,000,000
25,000,00
0
13,400,00
0
13,400,00
0
13,400,00
0
13,400,00
0
13,400,00
0
13,400,00
0
13,400,00
0
13,400,00
0
13,400,00
0
13,400,000
13,400,000
13,400,000
13,400,00
0
Current Assets:
Total Current
Assets
Fixed Assets:
Farm facilities
Pond dikes,
gates & dikes
Biosecurity
Equipment
Total Fixed
Assets
less:
Accumulated
Dep.
Net Value
TOTAL ASSETS
LIABILITIES &
CAPITAL
Long-term
Loans
Capital,
beginning
4
Net Income
(427,333)
Add: Net
savings
Total Liabilities
& Capital
37,972,66
7
(17,992,06
5)
(427,333)
(427,333)
62,572,66
7
(17,992,06
5)
(427,333)
(427,333)
(427,333)
62,572,667
(427,333)
86,169,869
86,169,86
9
(427,333)
(18,419,39
9)
(18,846,73
2)
(19,274,06
5)
43,298,60
1
25,306,53
6
24,879,20
3
24,451,86
9
24,024,536
86,597,203
(499,667)
(499,667)
19,980,60
1
19,553,26
8
19,125,93
5
81,698,60
1
63,706,53
6
63,279,20
3
62,851,86
9
62,424,53
6
124,997,20
3
124,569,86
9
124,070,20
3
124,070,2
03
5
Projected Annual Income Statement
Tiger Prawn Production - 100 Has.
Cost Items
Sales (no.of units x price)
less: Expenses
Year 1
Year 2
Year 3
Year 4
Year 5
126,000,000 132,300,000
138,915,000 145,860,750 153,153,788
Lime (40 bags/ha x price 150)
1,200,000
1,260,000
1,323,000
1,389,150
1,458,608
Organic fertilizer(14 bags@350)
229,464
240,937
252,984
265,633
278,915
Inorganic Fertilizer (14-14-14)
940,333
987,350
1,036,718
1,088,553
1,142,981
Labor- Dikes/ Watergate Maint.
880,000
924,000
970,200
1,018,710
1,069,646
Fry at Php 0.35 each
3,500,000
3,675,000
3,858,750
4,051,688
4,254,272
Feeds: Post Larvae, 2 bags
572,000
600,600
630,630
662,162
695,270
PL Starter, 6 bags
1,656,000
1,738,800
1,825,740
1,917,027
2,012,878
Starter, 12 bags
3,252,000
3,414,600
3,585,330
3,764,597
3,952,826
Grower feeds, 16 bags
4,176,000
4,384,800
4,604,040
4,834,242
5,075,954
Finisher, 50 bags
12,800,000
13,440,000
14,112,000
14,817,600
15,558,480
Milkfish fingerlings
2,500,000
2,625,000
2,756,250
2,894,063
3,038,766
Probiotics, 6-kgs @ P1200/kg
1,440,000
1,512,000
1,587,600
1,666,980
1,750,329
Tea seed (4 bags @ P1,630)
1,304,000
1,369,200
1,437,660
1,509,543
1,585,020
Fish nets, per 100-m roll, 4
1,620,000
1,701,000
1,786,050
1,875,353
1,969,120
-
Subsistence: 4-bags Rice
-
-
- -
Admin/ OH Expense
720,000
756,000
793,800
833,490
875,165
Management Expense
600,000
630,000
661,500
694,575
729,304
Depreciation Expense
2,940,000
2,940,000
2,940,000
2,940,000
2,940,000
Total Operating Expenses
40,329,797
42,199,287
44,162,252
46,223,364
48,387,532
Net Income
85,670,203
90,100,713
94,752,748
99,637,386
104,766,255
0 85,670,203
90,100,713
94,752,748
99,637,386
Add: Net Savings
Total Reserves
85,670,203
175,770,915
184,853,461 194,390,134 204,403,641
Projected Annual Cash Flow Statement
Cost Items
Year 1
Year 2
Year 3
Year 4
Year 5
Inflows:
Capital, beginning
Loans
13,400,000
25,000,000
113,610,203
206,650,915
304,343,664
406,921,050
Cash sales
126,000,000
132,300,000
138,915,000
145,860,750
153,153,788
Total Inflows
164,400,000
245,910,203
345,565,915
450,204,414
560,074,837
Outflows:
Capital Outlay
13,400,000
Lime (40 bags/ha x price 150)
Organic fertilizer(14
bags@350)
1,200,000
229,464
240,937
Inorganic Fertilizer (14-14-14)
Labor- Dikes/ Watergate
Maint.
940,333
987,350
880,000
924,000
Fry at Php 0.35 each
3,500,000
Feeds: Post Larvae, 2 bags
572,000
1,260,000
1,323,000
3,675,000
1,389,150
252,984
1,036,718
970,200
3,858,750
600,600
630,630
265,633
1,458,608
278,915
1,088,553
1,142,981
1,018,710
1,069,646
4,051,688
4,254,272
662,162
695,270
PL Starter, 6 bags
1,656,000
1,738,800
1,825,740
1,917,027
2,012,878
Starter, 12 bags
3,252,000
3,414,600
3,585,330
3,764,597
3,952,826
Grower feeds, 16 bags
4,176,000
4,384,800
4,604,040
4,834,242
5,075,954
14,817,600
15,558,480
Finisher, 50 bags
12,800,000
13,440,000
14,112,000
Milkfish fingerlings
2,500,000
2,625,000
2,756,250
2,894,063
3,038,766
Probiotics, 6-kgs @ P1200/kg
1,440,000
1,512,000
1,587,600
1,666,980
1,750,329
Tea seed (4 bags @ P1,630)
1,304,000
1,369,200
1,437,660
1,509,543
1,585,020
Fish nets, per 100-m roll, 4
Subsistence: 4-bags Rice
1,620,000
1,701,000
1,786,050
1,875,353
1,969,120
Admin/ OH Expense
720,000
756,000
793,800
833,490
875,165
Management Expense
600,000
630,000
661,500
694,575
729,304
39,259,287
41,222,252
43,283,364
45,447,532
206,650,915
304,343,664
406,921,050
514,627,305
Operating Expense/ month
Net Cash Inflow/Outflow
-
50,789,797
113,610,203
-
-
1
Projected Annual Balance Sheet
Cost Items
Year 1
Year 2
Year 3
Year 4
Year 5
113,610,203
206,650,915
304,343,664
406,921,050 514,627,305
113,610,203
206,650,915
304,343,664
406,921,050 514,627,305
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
13,400,000
13,400,000
13,400,000
13,400,000
13,400,000
2,940,000
5,880,000
8,820,000
11,760,000
14,700,000
10,460,000
7,520,000
4,580,000
1,640,000
(1,300,000)
124,070,203
214,170,915
308,923,664
408,561,050 513,327,305
25,000,000
25,000,000
25,000,000
25,000,000
25,000,000
13,400,000
13,400,000
13,400,000
13,400,000
13,400,000
85,670,203
90,100,713
94,752,748
99,637,386
104,766,255
-
85,670,203
175,770,915
270,523,664 370,161,050
124,070,203
214,170,915
308,923,664
408,561,050 513,327,305
ASSETS
Current Assets:
Cash
Investments
Total Current Assets
Fixed Assets:
Farm facilities
Pond dikes, gates and
dikes
Biosecurity
Equipment
Total Fixed Assets
less: Accumulated Dep.
Net Value
TOTAL ASSETS
LIABILITIES & CAPITAL
Long-term Loans
Capital, beginning
Net Income
Add: Net savings
Total Liabilities & Capital
2
I. Socio-Economic Justification
This new technology on shrimp farming in brackish water ponds incorporates pollution management which
constitutes 9% of annual shrimp production cost per ha of the farmer. Pollution management is worth the cost
considering that a shrimp farmer could lose it all during a disease outbreak.
Environment-friendly practices include:
(1) Lowered stocking density – this may decrease harvest volume by 2030% but the harvest value could increase by 8-10%due to bigger size
and improved feed conversion. Feeding and nutrient loading is
reduced by 20%, and the risk of opportunistic diseases is reduced as
well.
(2) Improvement of pond bottom management – this may increase
plowing or tilling cost, add netcage construction to the expense but
these costs could be recovered from the sale of added fish crop.
Bacterial profile of sediment is improved, however, as well as water effluent quality. The pathogenic Vibrio
count is reduced.
(3) Crop rotation – one shrimp crop may be lost but there is some income from fish culture. Crop rotation improves
sediment bacterial profile, reduces Vibrio count, reduces incidence of white spot, and ultimately allow time for
organic waste to break down.
(4) Improvement in feed quality – SEAFDEC/AQD has formulated a diet much improved in nutritional quality and
lower nitrogen and phosphorus discharges. Farmers may also use probiotics.
(5) Stocking of laboratory-screened fry – there is a cost to fry analysis and screening and waiting time for the
results, but the farmer is reducing the risks for white spot and pathogenic Vibrio infections.
(6) Use of greenwater technology – culture area may be reduced by 25-50% due to the requirement for bigger
reservoir but cost can be recovered from the sale of fishes raised in the reservoir. There is also added expense
for modifying the water supply channel. The advantage is more stable water quality, and suppression of growth
of pathogenic Vibrio.
(7) Use of probiotics in water and feed – this can add a cost of P20,000
to P40,000 per ha per crop but healthy, antibiotic-free shrimp is
produced. Improved water quality and lower sludge accumulation
are the benefits, in addition to reducing the risk of developing more
virulent antibiotic-resistant strains of bacteria.
(8) Increase in aeration – addition of P150,000 to 200,000 per ha for
aerators and 50-60% increase in power consumption but the shrimp
grow faster and improve its feed conversion with increased
dissolved oxygen levels and reduced noxious metabolites.
(9) Use of settling ponds – additional cost of P2,500 to 5,000 per ha per year but settling ponds lower load of
suspended solids in effluent water and reduce the sediment
accumulation in receiving waters.
(10) Employment of biosecurity measures – additional cost of P15,000
to 20,000 per ha per year for pond sanitation, carrier exclusion
3
devices, filters, and worker hygiene but these measures significantly reduce the risk of introducing viral diseases
to the pond facility.
Technology profile:
(1) Re-engineer the farm layout by providing a bigger reservoir; impounding a portion of the mangrove area near
the ponds to where effluents may be held; and assigning sedimentation and biological treatment ponds
containing fish, bivalves and seaweeds.
(2) Prepare the ponds. Drain totally. Level the pond bottom. Dig peripheral and central canals. Crack-dry. Remove
the black sludge that accumulated in previous cropping. Flush the pond with water then drain. Apply either
agricultural lime at 2 tons per ha or hydrated lime at 0.5 to 1 ton per ha. Till the pond bottom. Compact. Install
the central and side sludge collectors. Install catwalks and feeding trays in grow-out ponds. Let in water. Position
the aerators and the pumps. Apply teaseed powder at 50 kg per ha to kill predators and competitors. Apply
dried chicken or cow manure at 300 kg per ha together with urea (45-0-0) at 18 kg per ha by the “tea bag―
method. Fertilize again if necessary.
(3) In the reservoir (25% of the grow-out farm), stock bio-manipulators like all-male tilapia and milkfish at 5,000 to
10,000 fish per ha. Hold water for at least a week before using it in grow-out ponds.
(4) In the grow-out ponds, acclimate then stock disease-free shrimp (at least post-larvae day 18) at 25 pieces per
m2, which gives the highest net profit per ha of P1.8 million. Stocking lower at 15 pieces per m2 can get you P1.1
million; while stocking higher at 40 pieces per m2 gives only P0.6 million. Bio-manipulators may be stocked
inside walled net enclosures (10 x 10 x 1.5 m) that are placed in the middle of the grow-out ponds. These fishes
can feed on the sludge that the paddle-wheel aerators tend to deposit at the center. The sides of the ponds may
also be enclosed similarly and stocked with bio-manipulators.
(5) Follow the usual pond routine – feed according to the feed manufactures instructions, sample stock regularly to
adjust feeding demand, monitor water quality and bacterial populations regularly, keep complete records. If
probiotics is an option, follow the application rate in the label. Operate the aerators from 6 pm to 6 am.
(6) In the low discharge system, a small amount of water is discharged from the grow-out pond and released to the
sea after passing through the settling or mangrove impoundment. To be effective, hold pond effluents in
mangroves for 6 hours or more.
(7) In the recirculating system, effluents from the grow-out pond are reused after passing through the treatment
pond. Water is fully circulated by pumping twice, first from the head reservoir to the grow-out pond and then
from the treatment pond to the grow-out pond.
(8) In treatment ponds, the effluent from the grow-out ponds passes through several hurdles. Note that the main
drain canal can serve as one of the treatment ponds. Install baffles to serve as mechanical filtration units and to
settle suspended solids. Dissolved nutrients can be taken up by bio-filters like oysters, the seaweed Gracilaria,
and green mussel, and these are stocked in the treatment ponds. Finally, a filter box fitted with a 2 hp
submersible pump is installed at the end of the pond.
(9) Harvest in 4-5 months by totally draining the ponds. Chill and sort before packing shrimp. Average weight is at
least 25 grams
4