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AFRICABIZ VOL 1 - ISSUE: 83
MARCH 15 - APRIL 14, 2006
Previous Issue
Editor: Dr. Bienvenu-Magloire Quenum
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A WORD FROM THE EDITOR


Dear visitor and international investor,


We warmly welcome you, if this is your first visit to Africabiz Online - The ultimate newsletter on trading and investing in 49 sub-Saharan African countries. If you are a regular and faithful reader, welcome back.

- TO NEGOTIATE HARD TO AVOID GLOBALIZATION'S TRAP

Month after month, since 1997, Africabiz's editorial team endeavors to bring to the attention of African entrepreneurs, decision makers, would-be entrepreneurs and the international community of investors at large the fact that Africa is the continent for profit making business development.

A glance at the "Business Opportunity Section" shows how many projects are there to grab and assist the continent bridging the developing gap.

African countries, however, are, since one decade, confronted with the so-called Globalization or Free Trade - that is threatening their global agricultural and industrial development.

Free trade requires that developing countries accept to lower or simply suppress customs tariffs and barriers for imports and exports - on the false ground that the resulting boost on commerce and trading would trigger economic development and help fight against poverty.


We, at Africabiz Online, consider said free trade conceptualization as a misleading one, because reality proves one has to produce before being in the position to sell. Simply said, without proper production, African developing nation would not be in the position to sell any added valued products on the international marketplace. Click following link to read: Trade Facilities Alone Would Not Alleviate Poverty In Africa

Of course, developing countries are pushing hard to carve an internationally binding agreement under World Trade Organization's umbrella. They know they are the winners, having already reached a developed level that permits them to play with tariffs, customs duties and subsidies generously granted to their farmers and industrialists.

On their part, African countries cannot afford suppressing customs duties on imports and exports. Doing that without gaining accurately calculated compensations from the developed nations - and subsequently obtaining the suppression of subsidies - would be meeting problems and economic disaster halfway. Indeed, for most African countries, national budget's revenues arise - for up to 95 percent - from duties levied on imports and exports.

African countries would have to negotiate hard, present well drafted counter-proposals, listing resulting revenues and jobs' losses to obtaining necessary compensations needed to avoid the collapse of their nascent agribusiness.

In short, Africa's decision makers should strive to avoid the globalization's trap setup by developing countries.

And, if necessity commands, they should refuse to sign any "consensual" agreement
that would be finally granting a cheap bargain to developed nations to block and restrain the development - in African nations. For said consensual agreement, under the binding umbrella of WTO, would not help African counties establish economies that create riches for all and alleviate poverty. Click here to read about: Globalization: Nothing New Under The Sun.

- Contributor's Guidelines are here to review. Your contribution on "How emerging nations and particularly African countries / entrepreneurs could bridge the developing gap" is welcome.

Your feedback / objection / contribution is welcome. Visit WorldWide BizCenter, and choose General Information (as topic) to create a thread for discussion. On the top of the WorldWide BizCenter page, there is a HELP link to assist you making an efficient use of the discussion board. This link also is useful


Many thanks for dropping by and see you here on April 15, 2006.

Dr. B.M. Quenum

Editor of AFRICABIZ

Contact Dr. Bienvenu-Magloire Quenum

BUSINESS OPPORTUNITIES IN AFRICA


- Several business opportunities - component parts of the Integrated Developing Scheme described in Africans, Stop Being Poor! are listed in following table.


a- SHEA BUTTER (5, 6, 7, 11, 12, 13)
b- BLUE GOLD (14, 15, 16, 17, 18, 19)
c- FREEZE-DRIED PAPAIN (20, 21, 22 and here)
d- KENAF (23, 24)
e- VEGETABLE OIL (25, 26, 27, 28)
f- CEREALS (30, 31, 32, 33)
g- FRUITS (34, 35, 36, 37, 38, 39, 40, 42, 43, 44, 45, 46)
h- ESSENTIAL OILS (47, 48, 49, 50, 51, 52)
i- ROOTS & TUBERS (54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64)
j- FOWL BREEDING (66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76)
k- FISH FARMING (78, 79, 80, 81, 82, 83, 84,

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- FISH FARMING AS BUSINESS OPPORTUNITY: PART VI - PONDS' CONSTRUCTION AND BRIEFS ABOUT THE ECONOMICS OF CATFISH FINGERLING PRODUCTION

- PONDS CONSTRUCTION AND MANAGEMENT

There are different methods of establishing ponds to breeding fish and particularly catfish and tilapia. The one to use depending on many factors and particularly on the financial means available to the entrepreneur.

Outdoor ponds can be created digging holes right into the soil. Such ponds are labor intensive, and suitable for low-medium fish breeding. They are not so easy to manage as far as water biology and feeding's control are concerned.

Indoor ponds made of large concrete-built or plastic containers are more "user friendly" with regards all the strict control of all aspects of the breeding operation - particularly water biology and feeding. These are capital and technology intensive; and are suitable for intensive fish breeding.

Click here to download a PDF file from Auburn University Alabama /USA that exposes designs for ponds' construction: (1) Illustration for intensive fish aquaculture unit with central drain; (2) Illustration of an aquaculture production system with intensive culture units, sedimentation areas and treatment pond; and (3) Illustration of an indoor intensive aquaculture system with waste treatment system.

Industrial Production of Catfish in Mississipi - USAPicture at the left is a aerial view of an industrial concern dedicated to intensive catfish production with very large ponds expanding over thousand of hectares. Click here to view a picture of ponds dug right into the soil

This link gives information about catfish production's management in soil-dug ponds; and this one exposes a table with "Recommended daily % body weight feeding ration for the African catfish."

At this URL you can review a complete report about catfish production. Anyone who is willing to undertake the business of breeding catfish should spare time to thoroughly read the report. That would save him from making mistakes and put him on the path of success.

Click here to review again a previous Africabiz delivery in which preliminaries about fish breeding had been delivered and emphasis put on the necessity for a fish breeding entrepreneur to have a strict book keeping about any manipulation and all inputs undertaken concerning the several aspects of running the breeding operation.

A link to a software called Pond (Decision Support Systems) had been given in above mentioned delivery. Pond is a computer program developed to guide decision making processes pertaining to warmwater pond aquaculture. It is a valuable productivity tool that assists educators, managers, planners and researchers to quickly and accurately analyze aquaculture systems under different management regimes.

- BRIEFS ABOUT THE ECONOMICS OF CATFISH'S FINGERLING PRODUCTION


Due to the technicalities that rule fingerling production, it would be better to have such production centralized in a research center and the production sold to farmers / producers in rural Africa.

Nevertheless, African entrepreneur who can efficiently and strictly follow-up with the production's constraints could also set up the operation and rip profit as below outlined.


This link provides a listing of definitions used for catfish production.

Taking into account all preliminary information and exposures made above and in previous deliveries [78, 79, 80, 81, 82, 83] let us consider an intensive small-scale fingerling breeding operation that comprises six ponds: (200 sq. meter each) - including one Broodfish / Broodstock pond.

- 1- Production Parameters

a) Production stock

Purchase of 10 broodfish / broodstock. Broodfish are fish kept for egg production, including males. Broodfish produce the fertilized eggs which go to hatcheries. The most desirable size is 3 to 10 pounds or 4 to 6 years of age. At the start of the operation, it is compulsory to purchase genetically sane species from a reliable source. (See previous Africabiz deliveries 78, 79, 80, 81, 82, 83 for more.)

These broodstock would permit the production of 30 to 40 fingerlings per sp. meter in fingerlings' production-pond; over 8 rearing cycles per year; with an average weight per fingerling equal to 3g. That is an average total fingerling production of 280,000 / year.[Source]

b) Operating Inputs

Table below exposes operating inputs and related cost in US$

Operating Inputs and Costs
Items Broodfish Feeding* Fingerling Feeding* Labour Equipment Maintenance/Sundry
Input 6,500 kg/year 1,000 kg/ year 17 Person/month Barrows, lifter. Etc -
Costs 0,10 US$/ kg* 0,10 US /kg * 1,275 US$/ month 1,500 US$ / year 15% total operating costs

REMARK*: Feeding and related costs are based on a previous Africabiz delivery about a small scale vegetable oil operation: Invest US$ 50,000 And Become Oil King In Africa. The resulting Sesame Oil Cake is an excellent feed for fish. (Also suitable for human consumption.) The producing cost sesame oil cake is normally around US$ 0,06 per Kg. We have taken into account additional necessary feeding supplements (starch, rice bran, corn waste, broken corn cob, medicines. Etc) to put the estimated feeding cost in above table at US$ 0,10 per kg.

Table below summarizes Investments, Operating Costs for the production of 280,000 catfish fingerlings per year with a small-scale breeding operation based on above mentioned assumptions, data and information:


Items
US$
INVESTMENTS

Production Space Layout: 5 fingerling fattening ponds / 200 sq. meter each; one broodstock pond / 200 sq. meter. Protection nets. Shelters. Small office space. Etc

25,500

Other Production Equipment: Broodfish acquisition. One pick-up car; 25 barrows; handling equipment, 50 small plastic basins (5 kg content); 75 pairs of plastic gloves. Etc.

14,500

Total investment

40,000
OPERATING COSTS

Operating Expenses: to producing 280,000 fingerlings per year as per assumptions and data exposed in previous table.

18,458
PRODUCTION COST PER 1,000 FINGERLINGS
18,450 US$ divided by 280 = 66
GENERATED REVENUES*
280,000 x 0,10* = 28,000
GROSS PROFIT
GROSS PROFIT 9,542

REMARK*: One notices the low production cost per fingerling that allows for the set up of selling price with a comfortable (51%) profit margin as above exposed.

Instead of selling fingerlings, a fish breeding entrepreneur could establish a fattening operation to producing mature fish ready for marketplace over 10 to 12 months' fattening period. Next Africabiz issue 84 (April 15, 2006) will deal with that opportunity.

MORE ON FISH FARMING
1- How to Start and Manage a Fish Farming Business
by Jerre G. Lewis
2- Integrated Fish Farming
by Workshop on Integrated Fish Farming
3- Catfish farming handbook
by Jerry Mack Johnson
4- Commercial Catfish Farming
by Jasper S. Lee
5-
Cage Culture Of Tilapia
In Rural Farm Ponds

An article from: Journal of the Alabama Academy of Science [HTML]
(Digital - January 1, 2000)
6- Backyard Fish Farming
by Paul Bryant

7- Intensive Fish Farming
by Jonathan Shepherd, Niall Bromage
8- Second International Symposium on Tilapia in Aquaculture:
by Thai International Symposium on Tilapia in Aquaculture 1987 Bangkok, et al (Hardcover - January 1990)
9- Tilapia Culture
by Abdel-fattah M. El-sayed, A. F. M. Sayed (Hardcover - February 2006)
10- Tilapias: Biology and Exploitation
by M.C.M Beveridge (Editor), B. McAndrew (Editor)

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