CHAPTER ONE

1.1 Benefits Of Fish Production

Nigeria is one of the largest producers of fish in Africa, accounting for about 10
percent of the continent’s total fish production. In fact, Nigeria has the potential to
become one of the biggest fish producers in the world. However, with several
challenges such as lack of modern technology and insufficient financing
opportunities, there is room for improvement when it comes to fish farming in
Nigeria. Fortunately, that’s changing and fast. The good news is there are various
agribusiness ventures that have sprung up to help local farmers get more out of
their land and improve their farm yields with little input from them. This article
discusses some of the benefits of fish farming in Nigeria and why you should
consider getting involved if you’re thinking about becoming an investor or
entrepreneur in this industry.

Fish farming, also known as aquaculture is one of the most common areas of
farming in Nigeria and also one of the most beneficial. We are far past the days of
catching fish in ponds or streams and selling at the local market as fish farming in
Nigeria has advanced over time and farmers now grow the fishes in their farms or
houses. This way they are able to control output and revenue.

New and existing farmers hoping to start or expand their capacity are encouraged
to start fish farming, as it has proven to be very beneficial in terms of sales and
overall profit.

This brief piece highlights ten amazing benefits of fish farming that will definitely
raise your interest in the venture.

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1. Stable supply and Demand: As one of the highest source of protein, fish is
widely consumed by Nigerians on a somewhat large scale. This means that demand
for this product is mainly stable all year round and since fishes grow rapidly, there
will always be enough to supply. Investing in fish farming will definitely incur
large and stable stream of profits over time

2. Top consumer choice : Fish is relatively cheaper than most meat products and
hence, it sells faster. It is therefore an attractive venture as it remains the top choice
for consumers in terms of affordability.

3. Steady Growth pattern: Growth pattern in fish is very fast and easy to
understand. Farmers can also quicken the growth process of the fishes by giving
them certain growth-enhancing feeds. This characteristic of fish ensures that
farmers can harvest and sell in a very short period of time.

4. High Revenue: With proper planning and good management, fish farming can
be very profitable to farmers. With N2 million as capital or investment, one could
gain up to N3 million worth of profit in just six months.

5. No Environmental Hazard: Fish farming ventures can be set up anywhere,

including residential areas, as it does not create any environmental or health
hazards.

6. Easy Addition to General farm activities: Farmers can easily incorporate fish
farming with their already existing crop farms and gain more profit while
conserving water and other resources.

7. Any species of fish can be Reared: Exclusive fish farming enables farmers to
grow any species of fish they want to

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8. Ease of Access: The fish ponds can be established within the farmer’s
compound to increase accessibility and reduce costs of transportation.

9. Great Source of Omega 3 : Fish still remains the biggest source of omega 3
fatty acids which is very beneficial to the human heart and brain. Omega 3 is not
produced in the human body and it can only be gotten from an external source.
Fish is a great and healthy source of this nutrient.

10. Easy to maintain: With adequate knowledge, expertise and resources, fishes
can be very easy to handled and maintain.

Without a doubt, fish farming is one of the most lucrative agricultural business
ventures. With a brilliant business plan and the much-needed resources and
expertise, one can easily obtain great success through fish farming.

11. Sustainability: Fish production can help address food security and
sustainability, as it is a source of high-quality protein that is relatively low in
greenhouse gas emissions compared to other animal protein sources.

12. Water conservation: Aquaponics, a closed-system food production

technology that integrates recirculating aquaculture with hydroponics, can help
reduce water usage and waste.

13. Reduced environmental impact: Research on alternative protein sources for

fish diets, such as terrestrial plant proteins, can help reduce the reliance on
traditional fish feed sources and contribute to more sustainable fish production.

14. Improved water quality: Fish production can help improve water quality by
removing excess nutrients from the water, which can reduce the risk of harmful
algal blooms and other water quality issues.

Economic Benefits

3
Fish production contributes to the economy through the creation of employment
opportunities, particularly in coastal areas and fishing communities. It also
provides a a source of income for those involved in the fishing industry.
Additionally, it contributes to the food supply and can be a source of export
revenue for many countries.
Environmental Benefits
Fish farming, also known as aquaculture, can help relieve pressure on wild fish
stocks by providing a sustainable source of fish. Furthermore, it can reduce the
environmental impact of overfishing and bycatch. Some forms of fish farming,
such as integrated multi-trophic aquaculture, can also have positive effects on
water quality by utilizing waste from one aquatic species as feed for another.

4
 CHAPTER TWO

2.1 Fish Farm Planning Organization and Management

Fish farm planning, organization, and management involve various activities such
as planning, organization of pond work, execution of management activities,
commercialization of fish, feeding, sampling, and cleaning and disinfection of
ponds. A decision support software called AQUAM is dedicated to freshwater fish
farms, aiming to achieve efficient management of resources through planning,
monitoring, analysis, and decision support. Successful planning and management
require the integration of data related to ponds, fish species, fish growth, water and
energy, and economic analysis. Mathematical modeling is also used for flow,
pesticide, and nutrient transport for fish farm planning and management. In land-
based aquaculture systems, good management planning is important, and master
production planning is used to decide the number of rearing, production schedule,
and efficient allocation of water resources considering biological and economic
conditions.
When planning a fish farm, several key factors should be considered to ensure
successful management and decision-making. These factors include:

1. Integration of Data: Successful planning and management requires the

integration of data related to ponds, fish species, fish growth, water and energy,
and economic analysis.

2. Resource Management: Efficient management of resources through planning,

monitoring, analysis, and decision support is essential. This includes computing

5
farm budgets, simulating profitability, and considering costs and returns to
determine short and long-term profitability.

3. Mathematical Modeling:Mathematical modeling is used for flow, pesticide, and

nutrient transport for fish farm planning and management. It helps in making
informed decisions related to production and environmental impact.

4. Production Planning: In land-based aquaculture systems, master production

planning is important to decide the number of rearing, production schedule, and
efficient allocation of water resources considering biological and economic
conditions.

By considering these factors, fish farm planning can be effectively organized and
managed to ensure sustainable and profitable operations.

Managing a fish farm can be challenging due to various factors, including

environmental, biological, and economic factors. Some common challenges in
managing a fish farm are:

 -Water quality management: Maintaining good water quality is crucial for

the health and growth of fish. Factors such as dissolved oxygen, pH,
temperature, and ammonia levels need to be monitored and managed.
 Disease management: Fish can be susceptible to various diseases, which can
lead to significant losses. Disease prevention and management strategies
need to be in place, including vaccination, biosecurity measures, and proper
nutrition.

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  Feed management: Proper feeding is essential for the growth and health of
fish. Overfeeding or underfeeding can lead to health problems and reduced
growth rates. Feed quality and quantity need to be monitored and adjusted as
necessary.
 Environmental factors: Fish farms can be affected by environmental factors
such as weather, water availability, and pollution. These factors can impact
fish growth and survival and need to be managed accordingly.
 Economic factors: Fish farming can be a costly enterprise, and profitability
depends on factors such as fish prices, feed costs, and production efficiency.
Economic analysis and planning are necessary to ensure the long-term
sustainability of the fish farm.

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 CHAPTER THREE

3.1Propose a name of a fish farm

My name is Mr. Samson Yakubu Tari and my company name is Samyaks
International Ltd.
I have always dreamt of a business of my own and I continued saving towards it. In
2024 having made up my mind on the business channel and with a start up capital
at hand to establish this fish farm.
As a newly married man, my quest and prayer for a line of work that will give me
freedom for my matrimonial responsibility and as well provide financial support
the family came to reality.

3.2Objectives of the Farm

i. The major objective is to start up a workable fish farm that will be producing
at least 20,000 pieces of fresh fish in every six months.
ii. It will help to create employment for Nigeria youths and help solve the
problem of insecurity,
iii. Promote entrepreneurship among Nigerian youths.

3.3Expected Products, Category and Number of the Staffs

When I will start this business, our expected production rate is 5000 matured
fishes in our three years of operation.

8
This achievement I will always attribute to the quality of my management team,
their expertise and devotion.
1 Farm manager, 1 Manager Assistant, 1 person in charge from hatchery to
harvesting and sales, 1 stock keeper and operation person, 2 other staff(male and
female), they assist in all the main departments of operations, from nursery to the
sales aspect and 1 security person making a total number of 7 staffs.
10.

Amount Of Money Needed For the Invests And For What Purpose.
I am asking for N10,000,000 (ten million naira) to support our operations,
With our projected expansion from 5000 fishes to 20,000 fishes every three
months, the ten million naira will be used to support the feeding, and expand our
facilities as listed below;
 Purchase of a 15tons multipurpose (cooling and drying) van at N2,000,000
(two million naira).
 Preparation of three more ground pounds with concreted sides (5000fishe
capacity) at N3,000,000 (three million naira) at one million naira each.
 Construction of a bigger over head water tank, at N1,000,000 (one million
naira.)
 Purchase of a bigger diesel generating set N600,000 (six hundred thousand
naira)
 Purchase of more fish feeds to support the increase consumption as a result
of increased number of fishes at N3,000,000 ( three million naira)
 Stocking of diesel and other working tools and hatchery trays and nursery at
N500,000 (five hundred thousand naira.

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3.4 Organization Management

As a fish farm manager, you'll help to manage a fish farm breeding programme,
breeding fish by hatching eggs from adult stock or sometimes by buying in young
fish and then rearing them before selling on to purchasers.

Fish farming, or aquaculture as it's commonly known, is an intensive animal

husbandry business. The work involves managing and maintaining fish habitats
throughout the year, taking care of stock health and welfare issues and feeding the
fish either manually or using automated machinery.

Responsibilities

As a fish farmer, you'll need to:

 calculate the feeding regime, which is often done by automatic computer

systems
 monitor the health of the fish and treat them when appropriate
 plan breeding programmes and grow schedules to obtain maximum
efficiency
 adhere to environmental standards
 understand legislation and how to implement this into practical application
 ensure the water supply is of a sufficient quality for the stock
 be aware of different water management techniques
 adapt to new technologies as they develop and learn practical skills
 pay close attention to detail, in order to avoid expensive fish losses in what
can be a high-risk industry

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  possess stock skills such as fish handling, spawning, grading and harvesting
 update knowledge of fish health and nutrition
 maintain records of stocks
 sell fish products and assist the general public - this may apply if you work
for a farm that also offers other retail and leisure activities, such as angling
 market and sell the fish - although this responsibility depends on the
individual farm
 hold a full driving licens - depending on the farm this may be necessary, if
it's in an isolated position and you're required to transport the fish for sale.

3.4.1 Site Survey(Soil Topography, Land Size) and pH

The soil survey for a proposed fish farm should include an assessment of
topography, land size, and pH. The topography will help determine the suitability
of the land for fish pond construction, while the land size is essential for planning
the layout of the farm. The pH of the soil is a crucial factor as it affects the water
quality and the health of the fish. The survey should also assess other soil
properties such as fertility, texture, and nutrient levels to ensure the suitability of
the land for fish farming.
A study conducted in Kebbi State, Nigeria, provides an example of a soil fertility
survey, where soil samples were collected and analyzed for various parameters
including pH, organic carbon, total N, available P, and exchangeable basic cation
and also assessed the feasibility of fish pond construction based on land
topography, which can be a relevant aspect to consider for the proposed fish farm.
In addition to these aspects, it is important to consider the local climate, water
source, and environmental regulations when conducting a soil survey for a fish

11
farm. This comprehensive approach will help ensure the successful establishment
and operation of the fish farm.

3.5 Management of the Farm Structures

Fish farm structures can be managed in various ways to improve production and
minimize negative impacts on the environment. One approach is to redesign
traditional fish-farm systems as climate, economic, and environmental adaptation
devices[1]. Models have been developed to inform the structure of zones in
specific systems to manage disease agents such as Lepeophtheirussalmonis[2].
Fish farms can also serve as small marine protected areas, attracting a variety of
fish species by providing solid structure and food[3]. Flow control plates can be
used to manage fishways in irrigation diversions for upstream passage of aquatic
species. Fish farms are attractive habitats for certain species of wild fish in specific
seasons, and monitoring of farm-associated wild fish assemblages could aid
management of the interaction of aquaculture and wild fish resources.

3.6 Management of the Fish

Fish farming is the practice of raising fish in tanks or enclosures for commercial
purposes. Proper management of fish in a fish farm is essential for the success of
the operation. Some important aspects of fish farm management include water
quality management, feeding, disease prevention, and harvesting. Water quality
management involves monitoring and maintaining the temperature, pH, dissolved
oxygen, and ammonia levels in the water. Feeding should be done according to the
nutritional requirements of the fish species being raised. Disease prevention

12
involves regular monitoring of the fish for signs of illness and taking appropriate
measures to prevent the spread of disease. Harvesting should be done at the right
time to ensure maximum yield and quality of the fish.

3.7 Management of the Staffs

The management of staff in a fish farm is crucial for ensuring the health and well-
being of the farmed fish. It involves various aspects such as disease control,
biosecurity, knowledge in fish health, and usage of prophylactic health products.
Additionally, staff training and education programs play a significant role in
equipping the personnel with the necessary skills for effective management. For
instance, the "HEALTHY_FISH" app is an example of an innovative tool
developed to train and qualify staff on the health and welfare of fish in aquaculture
farms. Furthermore, regulatory measures, biosecurity, and disease control
programs are essential for preventing and controlling diseases, preserving human,
animal, and environmental health. It is also important to improve the extension
support and training for fish farmers and fisheries staff to enhance their capacity in
fish health management practices. In summary, the management of staff in a fish
farm encompasses various elements such as training, disease control, biosecurity,
and regulatory measures to ensure the well-being of the farmed fish and the
sustainability of the aquaculture industry.

3.7 Technical Staff and non-technical staff

Fish farm technicians will serves as valued members of the farm. The role of the
technicians are a progressive level position in the operations team, working
passionately within the fish farm facilities. These individuals are responsible for

13
using dedicated teamwork to complete all tasks required for a productive, fun,
healthful, and efficient growth of finfish within the state-of-the-art fish farms
opposing flows nursery and growth-out tank systems.

Their functions
 Make standardized observation such as length, weight, behavior, growth,
survival, and or signs of parasites, diseases or pathogens
 Collect and organize biological fish and water samples
 Support aquaculture fish rearing activities including feeding, grading,
sampling, harvesting, sorting, handling, and transporting fish, Monitor the
status of facility systems and equipment, assist in the maintenance and
cleaning of system tanks.
 Make regular facility inspection including, for example pumps, motors,
blowers, diffusers, drains, tanks screens, filters, feeders, and related
equipments. Monitor and maintain water quality levels. Record findings and
adjustment made. Respond appropriately and immediately to emergencies
 Work within a team environment on all aspects of the operation of the
aquaculture facility.
 Able to work extended hours/days on as-needed or scheduled basis.
 Manage fish health and welfare through all tasks.
 Complete other similar and related tasks and duties as assigned

14
 CHAPTER FOUR
4.0 Fish Farm Accounting
Fish farm accounting involves keeping records of various activities, events, and
materials regarding the farm operations. Record keeping is necessary for financial
planning decisions, providing data for government administrative and extension
purposes, assisting in livestock management decisions, and evaluating overall
activities of the fish farm]. The records that need to be kept include identification
of fish, financial records, production records, health records, record of agricultural
inputs, records of animal feeds, daily farm records, records of farm implements and
equipment, and workers and vehicle records]. The methods of record keeping can
range from a basic manual (hand) record-keeping method to an elaborate
computerized system, depending on the size of the farm, the expected use of the
records, type of farms, and the individuals who own the farm.

4.1 Record Keeping

This is the recording of the various activities in the farm It is also the systematic
way of recording financial transactions and the use of labour and other services to
produce fish and other aquatic products. Farm record is written documents
showing major activities going on in the farming business. The various types of
records required to be kept by all farmers are classified into two major categories.
These are Cash Records and Non-Cash Records.

15
4.1.1 Important of Record Keeping
 It gives the history of what happens in the farm from the beginning to the
end of the farm business
 Provides the necessary facts and figures for farm planning and budgeting
 It helps to determine the level of profit or loss made by the farm
 It enables the farmers to obtain loans from the bank
 It creates room for farm evaluation in order to determine the farmer’s
management skills- net worth statement, profit-loss statement; the cash flow
statement
 It helps to determine value of the farm in case of winding up or death of the
owner of the farm
 The actual yield of the farm is determined
 It enables tax inspectors to accurately assess the farm and know the total tax
to be paid
 Certain decisions relating to the farm can be taken in order to facilitate long
term planning
 It also enables the farmer to keep abreast with all the activities in the farm

4.1.2 Types of Record Keeping

Records are important to the financial health of the farm. Good records do not
ensure your farm will be successful; however success is unlikely without them.
Accurate and up-to-date records are essential to successful farm management.
Before any financial, budgeting or financial decisions can be made, farm records
must be maintained.
Farm records are like report cards students receive in school, with a farm report
card, you can tell how well you are managing your operation compared with other

16
producers in your “class”. You can also see the strengths and weaknesses of your
farm operation. Below are the types of record keeping discussed in this technical
report writting;
(1) Farm Diary: This is a record of day to day activities of the farm. It is possible
to trace weakness in the farm business. Farm diary takes care of crops, date of
planting, amount of seed used, harvest
date, etc.
(2) Farm Inventory: This record takes care of the livestock (types,
number etc), buildings etc. It gives information on the state of the item, the ones
that need replacement, repair, borrowed, or hired out.
(3) Input Records: This record gives details of the size or quantity of input
utilized to the farm e.g fertilizers, feed for livestock, amount of seeds used, labour,
medication, stock of livestock etc. It enables the farmer know whether he is using
too much animal feed or much seeds as the case maybe, before too much losses are
incurred.
(4) Production Records: This record measures the productivity of the land, and
success of farming operations generally. It shows whether a particular livestock is
doing well or not.
(5) Scale Records: This record tells a farmer how much he is making. It helps the
farmer not to spend too much and also help him in adequate farm planning.
(6) Consumption Records: Not all produced are put to sale. This records the
quantity harvested and consumed by the farmer and his family, or given out, but
not sold.
(7) Profit And Loss Accounts: This record has two sides. The left side has to do
with liabilities and payments (purchased and expenses) While the right hand side is
concern with Assets and Revenue (Sales and Receipts).

17
Basically there are three basic types of farm records: resources inventories,
production accounts of livestock and crop operations, and income and expense
records.

SAMYAKS INTERNATIONAL FISH FARM LIMITED

Adjacent EYN LCC No.1 Michika LGA, Adamawa State, Nigeria.
+2348166449745
samsonyakubutari@gmail,com
Profit & Loss Statement
For the Period Ended___________________________

Income =N= =N=

Sales 0000000
Services 00000000
Other income 00000

Total Income 0000000

Expenses
Accounting 0000000
Advertising 000000
Assets Small 000000
Bank Charges 000000
Cost of Goods Sold 00000

18
 Total Expenses 00000000

Profit/Loss 00000000

Example of Farm Record Keeping Book

Year: Start Date: End of Year:
S/N Types of QTY AVG Value QTY AVG Value Balance
Livestock Weight Weight

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4.2 Farm Account

A farm account is a record-keeping system used by farmers to track their financial

transactions and monitor their farm's performance. It includes information on
income, expenses, assets, and liabilities.

4.2.1 Importance of Farm Account

The importance of farm accounting can be summarized as follows:

1. Financial Management: Farm accounting helps in managing the finances of the

farm, including budgeting, cash flow management, and financial analysis, which
are crucial for the sustainability and growth of the farm.

2. Decision Making: It provides essential information for making informed

decisions related to crop selection, resource allocation, and investment in new
technologies or equipment.

3. Compliance and Reporting: Farm accounting ensures compliance with

regulatory requirements and provides accurate financial reporting, which is
important for tax purposes and when seeking external funding or partnerships.

20
4. Performance Evaluation: It enables the evaluation of the farm's performance
by tracking income, expenses, and profitability, which is essential for identifying
areas of improvement and measuring the success of the farm.

5. Risk Management: By maintaining detailed financial records, farm accounting

helps in identifying and managing risks, such as market fluctuations, weather-
related risks, and production uncertainties.

6. Sustainability and Planning: It plays a key role in sustainable farm

management and long-term planning by providing insights into the environmental
and economic impacts of various farming practices.
In a nutshell, farm accounting is integral to the overall management and success of
a farm, providing the financial information and insights necessary for effective
decision-making, compliance, and long-term sustainability.

4.2.2 Income and Expenditure Account

An income and expenditure account is a financial statement that shows the

revenues and expenses of an organization over a specific period of time. The
features of an income and expenditure account include the following:
 it is a summary of all the revenues and expenses of an organization,
 it shows the net income or loss of the organization,
 it is prepared for a specific period of time,
 it does not include capital expenditures,
 it is used to assess the financial performance of an organization, and
 it is an important tool for budgeting and financial planning.

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4.3 Special Account and Record

In accounting, a special account refers to a specific type of account that is used for
a particular purpose or to record a specific type of transaction. Some examples of
special accounts include:
1. Suspense Account: A suspense account is a temporary account used to hold
transactions that cannot be immediately recorded in their proper accounts due to
missing information or other issues. These accounts are typically used to ensure
that the accounting equation remains balanced until the missing information is
obtained or the issue is resolved.

2. Special Revenue Account: A special revenue account is a type of revenue

account that is used to record income from specific sources, such as grants or
donations. These accounts are typically used by non-profit organizations and
government agencies to track and manage their revenue from various sources.

3. Special Expense Account: A special expense account is a type of expense

account that is used to record expenses related to specific activities or projects.
These accounts are typically used by businesses and organizations to track and
manage their expenses related to specific initiatives or departments.

4. Special Asset Account: A special asset account is a type of asset account that is
used to record specific types of assets, such as intangible assets or long-term
investments. These accounts are typically used by businesses and organizations to
track and manage their non-current assets that do not fit into the standard asset
categories.

22
5. Special Liability Account: A special liability account is a type of liability
account that is used to record specific types of liabilities, such as contingent
liabilities or off-balance sheet liabilities. These accounts are typically used by
businesses and organizations to track and manage their non-current liabilities that
do not fit into the standard liability categories.
In a nutshell, a special account in accounting is a specific type of account that is
used for a particular purpose or to record a specific type of transaction. These
accounts help businesses and organizations track and manage their financial
activities more effectively.

4.3.1 Yield or Harvest Record

A yield or harvest record in fish farming refers to the documentation of the amount
of fish harvested from a farm during a specific period. This record is essential for
monitoring the productivity of the farm and making informed decisions about
management practices. Yield records can provide information on the following
aspects:
1. Fish production: The total weight of fish harvested from the farm, which
can be used to calculate the farm's productivity and profitability

2. Stocking density: The number of fish per unit area, which can help farmers
to optimize feeding rates and stocking densities to improve yield and reduce
costs

3. Feed efficiency: The relationship between feed supply and the amount of
fish produced, which can help farmers to adjust feeding rates to improve
productivity and reduce costs.

23
 4. Survival rates: The percentage of fish that survive from one production
cycle to the next, which can help farmers to identify issues with water
quality, disease, or other factors that may be affecting fish survival.

5. Production cycles: The length of time it takes for fish to grow from
juveniles to harvestable size, which can help farmers to optimize feeding
rates and stocking densities to improve productivity.

Importance

Yield or harvest record is important in fish farming because it helps farmers to

monitor the productivity of their farm and make informed decisions about their
operations. Yield records provide information on the amount of fish harvested,
which can be used to calculate the farm's productivity and profitability. This
information can be used to optimize feeding rates, stocking densities, and other
management practices to improve yield and reduce costs. Yield records can also
help farmers to identify trends and patterns in their production, which can be used
to make adjustments to their operations. For example, if yields are consistently
low, farmers may need to adjust their feeding rates or stocking densities to improve
productivity. Overall, yield records are an essential tool for fish farmers to manage
their operations effectively and maximize their profits.

4.3.2 Inventory Records

Inventory records in fish production refer to the documentation of various aspects

of fish production, such as fish species, fish passage barriers, fish feeds, and fish
yield potentials. These records are essential for understanding the availability and
distribution of fish resources, as well as for planning and managing fisheries.
Examples of inventory records in fish production include identifying human-made
physical barriers to fish passage[2], conducting DNA barcoding-based inventory of
24
fish species[3], assessing the utilization of fish feeds by fish farmers[5], and
summarizing the inventory survey of Nigeria inland waters and preliminary
estimates of their fish yield potentials[4]. Fisheries planning should be entrusted to
specially trained staff, as fishery resources and fish production have unique
characteristics that require specialized knowledge.

4.3.3 Performance Evaluation

The performance evaluation in fish production can be assessed through various
parameters such as growth rate, weight gain, feed conversion ratio, and economic
efficiency. Research on the production and economic performance of farmed carp
in lake commercial fish farms has shown the evaluation of carp farming
experiments using advanced methods and techniques, including the assessment of
fish productivity, mean weight, body length, and economic efficiency. Another
study evaluated the influence of replacing fishmeal with black soldier fly (BSF) on
the performance of fish species, indicating that BSF inclusion had varied effects on
specific growth rate and weight gain, depending on the species. Additionally, the
evaluation of an intensive pond aquaculture system for commercial freshwater fish
production and the use of fish wastewater for phycocyanin production by marine
microalgae have also been subjects of research. Furthermore, the use of fish waste
extract as a substrate to enhance the productivity of bioflocculant from
Klebsiellapneumoniae has been evaluated, showing significant flocculation rates.
These studies demonstrate the diverse methods and parameters used for evaluating
the performance of fish production, including the use of alternative protein sources,
aquaculture systems, and by-products for various applications.
The performance evaluation in fish production can be assessed through various
parameters such as growth rate, weight gain, feed conversion ratio, and economic
efficiency. Research on the production and economic performance of farmed carp
25
in lake commercial fish farms has shown the evaluation of carp farming
experiments using advanced methods and techniques, including the assessment of
fish productivity, mean weight, body length, and economic efficiency. Another
study evaluated the influence of replacing fishmeal with black soldier fly (BSF) on
the performance of fish species, indicating that BSF inclusion had varied effects on
specific growth rate and weight gain, depending on the species. Additionally, the
evaluation of an intensive pond aquaculture system for commercial freshwater fish
production and the use of fish wastewater for phycocyanin production by marine
microalgae have also been subjects of research. Furthermore, the use of fish waste
extract as a substrate to enhance the productivity of bioflocculant from
Klebsiellapneumoniae has been evaluated, showing significant flocculation rates.
These studies demonstrate the diverse methods and parameters used for evaluating
the performance of fish production, including the use of alternative protein sources,
aquaculture systems, and by-products for various applications.

4.4 Income Statement

An income statement in fish production is a financial report that provides
information about the revenues, costs, and profits of a fishing company or a fish
farming business. It is an essential tool for decision-making and understanding the
financial performance of the business. In the context of fish production, an income
statement typically includes the following components:

1. Revenues: This section lists the total sales of fish and fish products, including
the unit sales price and the quantity sold.

26
2. Costs: This section breaks down the costs associated with fish production, such
as the cost of raw materials (e.g., fish feed), labor costs, and factory overhead
costs.

3. Gross Profit:This is calculated by subtracting the total costs from the total
revenues, providing an indication of the business's profitability.

4. Operating Expenses: This section includes general administrative expenses,

marketing costs, and other non-production-related expenses.

5. Net Profit: This is calculated by subtracting the operating expenses from the
gross profit, providing the final profit or loss for the period.
In the context of fish production, an income statement can help managers make
informed decisions about production volumes, pricing strategies, and cost-saving
measures.

4.5 Profit and Loss Account

A profit and loss account in fish production is a financial statement that provides
information about the revenues, costs, and profits of a fish farming business. It
helps to assess the financial performance and business security of the company.
Key factors influencing fish production include feed, seed, and worker[1].
Financial performance and business security can be analyzed using financial
statement comparison and ratio analysis.
Some of the ratios that can be researched in a profit and loss account for fish
production are:
- Liquidity ratios: Current ratio and quick ratio
- Solvability ratios: Total debt to total asset ratio and total debt to equity ratio.
27
- Efficiency ratios: Inventory turnover, account receivable turnover, fixed asset
turnover, and total asset turnover.
- Profitability ratios: Gross profit margin, operating profit margin, net profit
margin, and return on investment.
In addition, a profit and loss account in fish production is an essential tool for
assessing the financial performance and business security of a fish farming
business. It helps to identify key factors influencing fish production and provides
insights into the company's liquidity, solvability, efficiency, and profitability.

4.6 Depreciation

Depreciation refers to the decrease in value of an asset over time due to wear and
tear, obsolescence, or other factors. It is an accounting concept that helps
businesses and individuals allocate the cost of an asset over its useful life.
Depreciation can be classified into two main types:
1. Physical depreciation: This refers to the actual deterioration of an asset's
physical condition over time. It can be caused by factors such as
environmental aggressiveness, corrosion, or other forms of wear and tear.

2. Accounting depreciation: This is the process of allocating the cost of an

asset over its useful life for accounting purposes. It helps businesses and
individuals track the value of their assets and make informed decisions
about their maintenance, replacement, or disposal.

In the context of fish fingerlings production, depreciation can be observed in the

fixed items, such as brood stock, hormones, and chemical substances, which are
used to raise fingerlings for all-year-round fish production.

28
4.6.1 States the Methods of Calculating Depreciation

1. Straight-line depreciation

The straight-line method calculates an average decline in value over a period. This
is the most common method and the simplest way to calculate depreciation. In
straight-line depreciation, the expense amount is the same every year over the
useful life of the asset. You can use the straight-line method on assets such as
vehicles, office furniture, equipment, and buildings.

A variation of the straight-line calculation is the fractional period depreciation.

Assets acquired in the middle of the year use the fractional period depreciation
application. In this case, the partial period calculation uses a fraction of the
straight-line method to value the asset.

Straight-line depreciation formula

The straight-line method provides the same deduction amount every year until the
asset reaches the salvage value or full depreciation. Here's the formula for straight-
line depreciation:

Straight-line depreciation = (Cost − Salvage value of the asset) / Useful life

Where;

 Cost is the purchase or acquisition price of the asset

 Salvage value is the value of the asset remaining after its useful life
 Useful life of the asset is the number of years an asset is expected to be used

2. Declining balance and double-declining balance depreciation

29
The declining balance method assumes an asset is valuable in its earlier years and
loses value in the coming years. It declines over time until it reaches its salvage
value or full depreciation. New companies or those expecting less revenue in their
first years may choose this method to lower tax bills by claiming larger
depreciation expenses. This method is also known as the diminishing balance
method, reducing balance method or written down value method.

Some companies may use the double-declining balance method, which applies a
more accelerated depreciation. The declining balance method is often used to
determine depreciation for computers, mobile phones and other technology
products that quickly become obsolete.

Declining balance and double-declining balance depreciation formulas

The declining-balance method provides much larger deductions in an asset's earlier

years and deductions in its later years. Here's the formula for declining balance
depreciation:

Declining balance depreciation = Beginning book value x Rate of depreciation

Here's the formula for double-declining balance depreciation:

Double-declining balance depreciation = 2 x Beginning book value x Rate of

depreciation

Where;

 Beginning book value is the asset’s value at the start of the year. This figure
changes every year.

30
  Rate of depreciation= (100% / Useful life of asset). This figure stays the
same.

3. Units of production depreciation

The units of production depreciation method calculates an equal expense rate to

each unit produced. This type of depreciation method is most useful when an
asset's value lies in the number of units it produces or in how much it's used, rather
than in its lifespan. The higher the production, the more the expenses. The units of
production depreciation method accounts for those conditions.

Units of production depreciation formula

This method produces depreciation amounts that vary annually depending on the
number of units made per year or accounting period. Here's the formula for
calculating units of production depreciation:

Units of production depreciation = [(Original value - Salvage value) /

Estimated units produced over asset's lifetime] x Actual units made per
accounting period

Where;

 Original value or cost is the purchase or acquisition price of the asset

 Salvage value is the value of the asset remaining after its useful life

4. Sum of years digits (SYD) depreciation

The sum of years determines depreciation at a rate faster than the straight-line
method but less than the declining balance method. It yields higher depreciation

31
expenses in the early years and declines later. It's useful when an asset loses most
of its value toward the beginning of its useful life.

SYD depreciation formula

To calculate the sum of years, divide the remaining life of an asset by the sum of
the years of its expected useful life. Then multiply by the depreciation base to
determine the expense. Here's the formula:

SYD depreciation = (Remaining life span / SYD) x (Cost − Salvage value)

Where;

 Remaining life span is the number of years remaining in the asset's useful
life. This number decreases by 1 every year.
 SYD equals the total of all the years in the lifespan. This number stays the
same. For example, if the asset is believed to last five years, the SYD would
be 5 + 4 + 3 + 2 + 1 = 15.
 Cost is the purchase or acquisition price of the asset
 Salvage value is the value of the asset remaining after its useful life

Salvage value

Salvage value in fish farming context refers to the value of the fish that are not sold
or harvested at the end of a production cycle. It is the value of the remaining fish
that can be sold for other purposes, such as animal feed or fertilizer. The salvage
value can be calculated by estimating the weight and market price of the remaining
fish. Developing water quality control systems is crucial for successful
aquaculture, as poor water quality can decrease fish health and yield.

32
Salvage value in fish farming is calculated by estimating the weight and market
price of the remaining fish that are not sold or harvested at the end of a production
cycle. The value of the remaining fish can be determined by multiplying the weight
of the fish by the market price per unit weight. For example, if the remaining fish
weigh 1000 kg and the market price is $5 per kg, the salvage value would be
$5000. It is important to note that the salvage value can vary depending on the
market conditions and the quality of the remaining fish.
An example of calculating the salvage value of a pond constructed in the proposal
is as follows: if a fish farmer constructs a pond for N2,000,000.00 and expects it to
last for 10 years, the annual depreciation would be N2,000,000.00 ( N2,000,000.00
/10 years). If the farmer decides to sell the pond after 5 years, the salvage value
would be the remaining value of the pond, which would be N200, 000 (N2,000,
000 – N200,000 X 5 years). Therefore, the salvage value of the pond would be
N1,000, 000.

CHAPTER FIVE
SUMMARY
In this unit, we have learnt that:
Nigeria is one of the largest producers of fish in Africa, accounting for about 10
percent of the continent’s total fish production. In fact, Nigeria has the potential to
become one of the biggest fish producers in the world. However, with several
challenges such as lack of modern technology and insufficient financing
opportunities, there is room for improvement when it comes to fish farming in
Nigeria and the main aim of the fish culture on commercial basis is to get high and
profitable fish yields. This can only be possible through sustainable management
practices without damage of environment. The successes of fish culture depend on

33
a number of factors, of which fertilization of the ponds to increase the production
of natural fish food organisms is a very important aspect.

Fish farming and production contributes to the economy through the creation of
employment opportunities, particularly in coastal areas and fishing communities. It
also provides a a source of income for those involved in the fishing industry.
Additionally, it contributes to the food supply and can be a source of export
revenue for many countries and can help relieve pressure on wild fish stocks by
providing a sustainable source of fish. Furthermore, it can reduce the
environmental impact of overfishing and bycatch. Some forms of fish farming,
such as integrated multi-trophic aquaculture, can also have positive effects on
water quality by utilizing waste from one aquatic species as feed for another.

Fish is also an important source of food, income, employment, and recreation for
people around the world and it is a very important source of animal protein for
both man and livestock in developed and developing countries. In Nigeria, the
current demand for fish is about four times the level of local production. Humans
consume approximately 80 percent of the catch as food. The remaining 20 percent
goes into the manufacturing of products such as fish oil, fertilizers, and animal
food.

Also it is important to keep record in fish farm as It gives the history of what
happens in the farm from the beginning to the end of the farm business, Provides
the necessary facts and figures for farm planning and budgeting, It helps to
determine the level of profit or loss made by the farm, It enables the farmers to
obtain loans from the bank, It creates room for farm evaluation in order to
determine the farmer’s management skills- net worth statement, profit-loss
statement; the cash flow statement, It helps to determine value of the farm in case

34
of winding up or death of the owner of the farm, The actual yield of the farm is
determined, It enables tax inspectors to accurately assess the farm and know the
total tax to be paid, Certain decisions relating to the farm can be taken in order to
facilitate long term planning, and It also enables the farmer to keep abreast with all
the activities in the farm.

Yield or harvest record is important in fish farming because it helps farmers to

monitor the productivity of their farm and make informed decisions about their
operations. Yield records provide information on the amount of fish harvested,
which can be used to calculate the farm's productivity and profitability. This
information can be used to optimize feeding rates, stocking densities, and other
management practices to improve yield and reduce costs. Yield records can also
help farmers to identify trends and patterns in their production, which can be used
to make adjustments to their operations.

Also it was discussed that profit and loss account in fish production is an essential
tool for assessing the financial performance and business security of a fish farming
business. It helps to identify key factors influencing fish production and provides
insights into the company's liquidity, solvability, efficiency, and profitability. It
helps to assess the financial performance and business security of the company.
Key factors influencing fish production include feed, seed, and worker. Financial
performance and business security can be analyzed using financial statement
comparison and ratio analysis.
Depreciation was also discussed in an accounting concept that helps businesses
and individuals allocate the cost of an asset over its useful life and its classified
into two main types: Physical depreciation which refers to the actual deterioration
of an asset's physical condition over time and Accounting depreciation which is the
process of allocating the cost of an asset over its useful life for accounting

35
purposes. It helps businesses and individuals track the value of their assets and
make informed decisions about their maintenance, replacement, or disposal. It is
also can be calculated in different methods which includes; The straight-line
method which calculates an average decline in value over a period. This is the most
common method and the simplest way to calculate depreciation, the straight-line
method on assets such as vehicles, office furniture, equipment, and building .
Secondly is the Declining balance and double-declining balance
depreciation method which assumes an asset is valuable in its earlier years and
loses value in the coming years. It declines over time until it reaches its salvage
value or full [Link] method is also known as the diminishing balance
method, reducing balance method or written down value method. Thirdly is
the units of production depreciation method which calculates an equal expense
rate to each unit produced. This type of depreciation method is most useful when
an asset's value lies in the number of units it produces or in how much it's used,
rather than in its lifespan. The higher the production, the more the expenses and
lastly is the sum of years determines depreciation which is at a rate faster than the
straight-line method but less than the declining balance method. It yields
higher depreciation expenses in the early years and declines later. It's useful when
an asset loses most of its value toward the beginning of its useful life.
Lastly the salvage value was discussed as in the context of fish farming as the
value of the fish that are not sold or harvested at the end of a production cycle. It is
the value of the remaining fish that can be sold for other purposes, such as animal
feed or fertilizer. It is important as it can be calculated by estimating the weight
and market price of the remaining fish. Developing water quality control systems is
crucial for successful aquaculture, as poor water quality can decrease fish health
and yield.

36
 REFERENCE

Hanson J.C, D.M, Johnson and B.V. Lesley (1991). Developing and Improving
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Gardner, B. L., Evenson, R. E., Rausser, G. C., &Pingali, P. (Eds.). (2001).
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Omitoyin, S.A. (2013). Fish farm management practices in Nigeria. African

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Price, C., Black, K.D., Hargrave, B.T. and Morris, J.A. (2015). Marine cage
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Spruill, V. (2001). Open-ocean aquaculture in the United States. USA: Ocean

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1d484830493d1811bc2ee8cccd3a78669151ca54
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f7d271a720eab7f57d77c1dacdac56de47ed665b
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e9aefdedfd57cf1ede18d84f27fe36aef484475a
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15eadf2c712d61382506ef8a3ac036ec8572004a
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01b3286fcb44d44d365fc3abac5ae71d69bcc1bf
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