Aquaculture - the background considerations

Aquaculture is one of the fastest growing sectors of the global agriculture industry, with many companies and individuals making good profits from investments in this industry.  However, there are also those who have made poor investment decisions, resulting in unprofitable or failed businesses.  New entrants into the aquaculture industry are therefore advised to approach investing in this industry cautiously, employing a logical and sound approach, and making sure they have the necessary facts and skills at their disposal prior to commencing with infrastructure development.

What does the Market require?

The starting point for any business has got to be the market.  We know that world fisheries are declining in parallel with global population growth, resulting in a huge and growing demand for fish and related seafood products.  But it is not enough for the investment to be made on the strength of this statement alone; the entrepreneur still needs to ensure that the market is accurately identified and clearly understood, to ensure the most appropriate species is farmed to the required size and processed in the correct manner to satisfy the needs of the target market.  When engaging with the market ensure you understand the form in which the product is required, ordering frequency and quantities, demand seasonality and your competition.

Business Plan

Any serious investment needs to be committed to writing in the form of a business plan to ensure that the entire plan is thought through carefully, accurately costed against a realistic time frame and appears economically attractive on paper.  This will give the entrepreneur assurance that the venture is feasible and will provide funders with a tool to assess the risks associated with the proposal, as well as a road map against which the performance of the business can be measured.

Technology

There is a range of different infrastructure types which are used for farming fish.  These need to be considered in the light of the climate where the fish are to be reared and in the light of the optimal growing conditions required by the species.  In addition, certain markets may require a high level of traceability that is only possible under specific growing conditions, necessitating the use of a specific infrastructure type such as closed recirculating systems.
In recent years aquaponics has developed into a viable business offering which is a logical inclusion on any RAS based fish farm as it reduces time to first sales and generally increases profitability when compared to a fish only system.

Site & Infrastructure Selection

Once you have established which species is to be farmed and the choice of appropriate infrastructure, the next step is to look for a suitable site.  The type of infrastructure to be used plays a role in site selection, as recirculating technology allows the production facility to be erected virtually anywhere, possibly at a slightly elevated production cost.  If earth ponds have been selected as the appropriate rearing facilities, then the site needs to offer large volumes of good quality water throughout the year, soil with high clay content on a gentle slope, and other specific conditions that limit the number of suitable sites.  Cages can only be utilised where there are large bodies of excellent quality water.

Training

The staff on an aquaculture facility need to be training; initially to provide the necessary skills to get them going and thereafter to keep them up to date with advances in the global industry.  Most aquaculture production is not complicated or difficult, but it requires specific production protocols to be in placed and for them to be executed in a disciplined manner to stay out of trouble and keep farming profitably; training entrenches these disciplines.

Few new entrants into aquaculture have the necessary skills to perform these investigations and decide on the best route to proceed, unaided.  It is therefore strongly recommended that you align yourself with a technically competent service provider who can draw alongside you and assist you in making the most appropriate decisions in your situation.  Aquaculture Solutions specialises in providing a range of services to the Aquaculture Industry in Africa, including the design of infrastructure, writing of Business Plans, erection of infrastructure, training of staff on site and Production Audits on existing facilities.

Parties who are interested in obtaining more information about the industry or the services we offer are invited to contact us.