Rebecca's Fish Pond Business Update
When I started writing this column, I mentioned that we were starting a prawn farm up in Abulug. Since that time, several readers have asked me for an update, and this posting is about the latest regarding the ponds and the business, along with pictures.
So, a bit about the business. There are 29 hectares of land, including the fish pan (over water). The land is located near the Abulug river, around 100 meters from the mouth of one of the delta tributaries, so the water is brackish (1/2 salt and ½ fresh). Access is only by boat, from the Abulug Centro fishing port. We have two bancas with 3 hp motors for transport, and will begin building a bridge to the shore for land / truck access this summer. Here is the location from Google Earth:
The ponds are in the red area
Currently, we started with four ponds, with plans for around 20. They currently hold tilapia, with future ponds to hold around ½ for prawns and ½ for tilapia, since tilapia grow quickly, take well to the water quality, and are in greater demand locally. Once the land was surveyed, the land was cleared by hand and carabao, and the first four ponds had to be dug by hand, since access by backhoe would require a barge and cost over 100,000 pesos, with the dikes and levees being around 1 meter tall. The remaining land has been planted with corn and monggo in order to provide the family some income while the fish business has the profits reinvested into more ponds. Buko seedlings have been planted around the perimeter of the land to provide income (Seven years) and natural fencing. The farming tasks also lets us keep the workers busy during the times that the fish are not being harvested, moved, or stocked. As the ponds produce more income with each harvest, the money will be reinvested into developing new ponds and cementing and updating the existing ponds. First harvest, with home delivery (business delivery) to customers is in two months.
Some points in our business plan, and requirements.
Personnel: Biggest challenge is finding staff. Unfortunately, in the province, nearly everyone has at least a small plot of land. Everyone harvests at the same time, so there are few available workers. I provide financing. Becky provides administration. Her brother, Kuya Jun, oversees the workers and decides everything about the physical operations. Rebecca’s brother Nito stays at the ponds with the workers, helping where needed. Currently, there are six workers and their families on site. More can be brought in temporarily. Rebecca’s brother Zaldy will eventually join the business once there is a stable income.
Education: All of Rebecca’s brothers took aquaculture classes from the Bureau of Fisheries. They know the biology and mechanics. I began networking with fish farmers at the start. After much talk, I determined that the farm is too small for us to be “big players”, but we can always buy more land in the future.
Our Goal: To earn enough income for the family to be self-sufficient (near term). Long term, once all 20 ponds are operating (5 years), we project revenues of around 10 million pesos per year. This is tentative, and must be shared. In terms of a Western business, very small scale.
Challenges: The biggest risk is the lack of business education in the province. SWOT analysis…
- Strengths: Family land, so little capital needed for initial purposes. Knowledge about fish farming. Dedicated “managers”.
- Weaknesses: Land size too small. Lack of business acumen in the province.
- Opportunities: Big demand… We can sell all we produce. Flexibility in trying new products, like raising abalone or starting a hatchery.
- Threats: Theft. Official corruption. Slim threat of competition, since a successful farm will sprout imitators (Very little aquaculture in that region). Slim threat of NPA activity (Hopefully, very slim.)
Costs (To date):
- US$5,000 for clearing land and digging ponds.
- US$1,000 for surveys.
- US$1,000 for equipment (Bancas, barbed wire, building materials, pumps).
- US$1,000 for fry, feeds, seeds, fertilizers.
- US$5,000 for labor (First 9 months).
Not too bad to start. Total US$13,000 upfront costs.
Future Plans and Costs:
- Digging 16 ponds at US$2,000 each. (US$32,000)
- Cementing 20 ponds and the required pumping system (Typhoon protection) US$10,000 each (US$200,000).
- DENR permits and environmental studies (once we’re above subsistence level) US$10,000
- Truck purchase (US$20,000)
- Bridge construction (US$2,000)
- Ice House and Ice making Equipment (US$20,000)
- Hatchery Equipment (US$20,000)
As you can see above, future plans will require US$304,000 at today’s prices. That is 1 1/2 year’s production if all 20 ponds are producing. (Each can produce around 5,000 surviving fish (25%). Once the ponds are cemented, the survival rate increases, but so does the feeding cost. We project a realistic 10 years for our goals to be met. (Technically, I’m supposed to be “paid back” my investment. I’m in no rush, nor is Becky. We just keep our original goal in mind. Expansion and development will be completed as the farm produces… Step-by-step. There are no guarantees. We are also, subject to the weather just like any other farm. Some pictures, along with descriptions:
Abulug Fishing Port
On the way to the ponds
Kids swimming by the fish pan (Some are behind the banca)
Entrance to the fish pan (Nets providing a "water barrier" to the ponds. Fish swim in naturally from the river, are trapped by the nets, and fished out. Free eating for the family and the workers)
The workers quarters (Another hut and a cement house are being built now)
Small Tilapia
Nursery in pond #2
Pond #3
Feeding time pond #2
Scarecrows, Pond #1 (Birds eat small fish... They can clean out a pond in a few days)
Crossing to the corn and monggo fields
Corn and monggo fields (Location of future ponds)
The family goats are kept there... Natural control of brush and scrub. (Just need to keep them away from the corn)
Cats control rats and snakes. Funny, they leave the fish alone.
Dock at the ponds
Great article John! You have a nice set-up in the province.
Is the bottom or the whole pond cemented? Sort of like a swimming pool?
Kamusta ka John,
Yes, another great article, and I would enjoy very much to visit your farm sometime in the future. Almost 20 years ago now, I worked on a aquaculture farm in Southern Maryland, along the Potomac River and its tributaries, raising farm raised oysters. I loved that work, might even had still been there today, had it not been shut down back during the first Iraqi war. Being in the business you are, you might even have met our financial backers, it was Stewart Petroleum, they were headquartered there in Piney Point, Maryland, but I believe they are back in Texas now, and they ship oil all over the world..so maybe you have sold your navigation system to them.
Your operating and business costs seem very good, we worked with a budget of $300,000 a year to run the facility. We also had the help of marine biologist from University Of Maryland as well, and a full time biologist for our hatchery too.
Well, I wish the best of luck to you in this venture, I don’t want to dampen this subject, but what are the threats to this business there, as far as typhoons, predators, such a birds and other animals getting into the ponds, things like that?
For us we had “oyster diseases to contend with like “Dermo” and “MSX” at the time, and also, too much rainfall during harvest time would bring down the salinity in the water too, and were not able to harvest at this time. But the biggest problem during the summertime was the good old Maryland Blue Crab, they loved to eat oysters..hehe..lol.
Take care, and would love to hear more about this in the future,
Danny
Good on ya John, I hope it goes very well for you guys. Thanks for the update.
Hi John!
Thanks for sharing your experiences. We have a plan for a small scale catfish and tilapia pond mainly for consumption. I am not familiar with monggo. Can you tell me what that is? I am also curious what the tilapia are being fed.
I must have missed when you did the first article on this will have to go back and look it up. Elvie and I were thinking about putting in a few fish ponds. I wasn’t thinking nearly as ambitious as you though just don’t have that kind of money. I didn’t realize they were that profitable we haven’t actually sat down and figured out the costs and income yet.
At first we were thinking tilapia then when I realized they were catching prawn out of the streams there I got to wondering if that would be more profitable. Will probably have some of both though.
Have you worked out making your own feed yet? We are thinking of pressing coconut oil and using the press cake as a feed base. Any idea on that?
Would love to come see your operation some day. Any tips for someone just getting started?
Have also been thinking of doing some hydroponics and maybe aquaponics which is feeding the plants in a hydroponic system with the fish effluent. But everything I’m thinking of is very small scale nothing like you have in mind.
Wow John that looks like fun .. As for real it is a lot of work for a few of families ..I would like to see the pharm some day after I move there .. Be my luck when I’m there you will be away for business hee hee ..Phil n Jess
Oh John the goat in the pic that is sooooo BIG !!! hee hee …Phil n Jess
Just like John H. I would like some more information and tips. I’ve been doing a little research and googling about fish pond farming. I would appreciate it if you can give us some info how to get started.
I’m thinking of just a pond or two… if I can raise tilapia and prawns in the same pond then probably just one pond. It’s mainly for family consumption and to sell some at the wet market.
Thanks!
~August
Hello Kuya John,
How about bangus(milkfish)? I also like lobster… I’m praying for your success to generate more jobs for local residences..
Phil n Jess: Feel free to have a look! The goat was only 1 month old… They are cute when young, but then they turn into goats!
This is something I have a great interest in, very impressed with your progress, hope it becomes what you dream it to be. Q? What was the process re, the local authorities, in getting water access and rights, costs? red tape? etc ?????
Hello, What are the chances of major damage due to floods and sea swells caused by typhoons ?
BTW. Good luck!!
Hi John, good pictures and set-up. Having been in the aquaculture business for several years, I must say that you have a lot of challenges ahead of you. Good luck.
One very important thing you must consider: the ability to detect oncoming diseases and be able to treat (i.e. prophylactic treatment plus quick segragation of diseased tanks from the rest). I am not experienced in prawn farming, but in Norway, Kjartan’s family operates a lobster farm (started in grandfather’s time, I think).They have cemented tanks and a big uncemented pond. All covered in a warehouse-like building. The pumped water also goes through some sort of light to kill disease-causing micro-organism, so it won’t flow out and transfer into the ocean. The pump system is very simple and works very well. There is an alarm in case it shuts down unexpectedly. The alarm is connected to their residence.
I’ve helped in the harvesting and packing. It is heavy work and I still remember my muscle pains for days.
There the climate is cold, so it is probably not as uncomfortable as here. For good fresh products though, your ice must be super-chilled. There I was pleasantly surprised to see that they use seaweeds and wet newspapers in the box to keep the lobsters cool and hydrated. They didn’t use ice as they will be transported for a short distance only (within the day).
I must say that your plans are amazing. If the philippines could find about 100 more peole like you no one would be leaving the country to find work and there would be full employment all around. My wife and I both enjoy reading your reports and wish you the best. My wife is going to disown me if I don’t come up with some sort of plan for all of her family as you are doing for yours. I wanted to retire there but you may force me to work to my dying day to crate a small empire in Leyte.
This is a very interesting article for me. Real stuff. Not that I don’t enjoy most of the things on ‘Livinin..’
Thanks. The very best of luck.
Arto
hi! i realy like to have this kind of bussiness someday! this is my dream, but i can’t afford to have it now! just pray for to me that hopefully someday ill be going to have this kind of bussiness.
i would like to know what the actual measurement of the ponds. I plan on moveing to the pie soon and trying to compair size of your ponds and your projections with the size of pond i plan on buying like you i am retired but cant sit still. I need to do something to keep me busy. Would like to know how many ponds you have and your harvest profits now if possible.
Jeff: The ponds are 25m by 50m each. Contribution margin is around 75%, with growth on tilapia at about 6 months (2X per year… 4X for prawns.) Net is around $2,000 per pond.
Thanks for that info it really helped me a lot so is that the profit per harvest or yearly then. Again i thank you, your article is the best one i have found on the subject.
Miss August: Yes, that’s sort of what cementing them in does. We begin that phase after more ponds are producing.
Danny: Thank you. Typhoons are a big problem. Part of the reason for planting the Buko were as wind breaks and to strengthen the soil around the dikes. The cementing helps prevent breeches of the dikes also. We plan to increase the dike size by about 1m. As to predation, crabs are a big problem, along with birds. We were thinking about growing crabs after cementing, but the threat of contaminating the other ponds is high.
Brian: Thanks!
Tom: Monggo is a type of soybean… In Cagayan, they boil it as a type of vegetable “starch” side dish. The fish feed is commercially made, mostly of fish meal, I believe.
John: Best advice I can give is to go to the classes in Iloilo or Laguna from Dept. of Fisheries. They are really the experts and the classes are relatively inexpensive. As to profitability, there are many factors… Survival %, market price, etc. Wild fry survive better, but could hold disease. It is a tough trade-off.
Miss August: From what I understand, Tilapia and Prawns together is possible. Best advice: Take the classes in Iloilo… They are worth the money and the instruction, particularly regarding a sustainable farm, is valuable.
Philmor: We were thinking maybe a pond for bangus, but the prices are better for prawns and tilapia on the local level. Thanks for your wishes!
I did quite a bit of Google searching and cant find any mention of these classes/schools etc… Do they have a website or do I need a phone number or something?
Deryl: We had some title issues and survey issues that needed to be resolved (The river changed course since the title was issued in 1923 and those issues needed to be sorted… It cost almost as much as buying a new piece of land.) We also needed to work with the DENR and Deept. of Fisheries. Environmental study necessary once we get everything fully running.
John: Fairly high, since that area gets pounded. That is why we are extending the height of the dikes and cememting the ponds in… it reduces the damage.
John:
Here’s the site: http://www.seafdec.org.ph/
Thanks John I expect we will be going to some classes later this year.
Hey I am just learning this in my real estate course. Rivers changing course and dried up river beds seem to be a constant thing here as this topic was covered in our seminars more than twice!!
Ellen: It can be a contentious issue, especially if you own the land that the river later covers!
Ellen: Thanks… You are right about disease. That is why the classes are so important. Sourcing fry from clean sources is vital. It is one of the problems with collecting wild fry.
Hard work, but I’m on the business end of things!
Don: Rebecca’s goal is self-sufficiency for the family. It will take time, but the goal is a worthy one. It has also been a great experience for both of us, despite the problems! (Just yesterday, someone left the fence open and the goats got into the hut where the pesticide was stored… several died. Becky had to have a talk with the employees about why fences are there. We pay them a bonus with a portion of the harvest, minimizing theft and giving a work incentive, so it impacts them too…Not just us.)
There are dozens of things you can do to make a living. It really just takes visiting the province and observing things around you…Martin, Dave, and Bob all have written great articles about business here on this site… It can be done!
As to retiring, I could never sit around all day. I’ll work until the day I drop. Everyone needs a reason to get up in the morning.
Arto: Thank you.
Yeah, I grow fish and market them behind the desk. It gets quite boring. I usually fly or drive out to the farms to get down and dirty with the guys. This way, they can’t say I don’t understand the business at all.
Ellen: Good for you! Behind a desk or not, you still need to know the business.