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1. Executive Summary

Samabe General Dealers Fish Farm is a newly proposed business to be set up in Choongwe Lusaka
district, and it is meant to deal in producing tilapia, three spotted bream and red bream. The farm is meant
to be managed by a team of ten workers.

The company intends to produce quality, nutritious and affordable fish to our close and distant consumer
including hotels, restaurant, homes and individual. Samabe General Dealers stands the edge of working
process under hygienic condition since our ponds will be built to facilitate such condition. The ponds will
be built close to a fresh clean river that already also contains the breed of tilapia and three spotted breams.
According to FAO and WHO which stipulated that fish is good for the body as a whole vital nutrients it
has. It is fats free and it also has cod liver oil which has health benefits which includes ability to aid in
treatment of heart diseases, high cholesterol, depression, anxiety, low immunity, cancer, diabetes,
inflammation, arthritis, AIDS, Alzheimer’s disease, eye disorders, macular degeneration and ulcers. It
also helps in weight loss, pregnancy, fertility and skin care. It is easy to prepare and easily consumable as
compared to meat and other substitute. Meanwhile, fish consumption of late has risen and is climbing to a
significant height only that it is expensive to the average wage earners who forms a greater part of the
populace around the company’s operating areas.

In the short run, Samabe General Dealers aims at providing and introducing total quality management to
help capture a fair share of the markets and establish a good relationship with our customers and suppliers
in terms of payment and delivery in the long run.

Samabe General Dealers will concentrate on production for eighteen months after which it is believed to
reach most its potential markets. The financial projections indicate that the firm will achieve break even
in the second year of operation.

A one year financial analysis of the company’s products and services will result in a gain of K60, 900 net
profit per/ fish pond from an income of K60, 000 per/fish harvest.

2. Vision

To be the number one player in the fish industry and to contribute to nutritional health of both old and
young people, and to supply food continuously and also be a contributor to our national economic growth.

The goal of this project is to develop a decision support tool for profitability assessment of fish farming.
The vision is that this may in the future be of valuable help to evaluate the profitability and thus the
sustainability of fish farming in the country. Samabe General Dealers needs to make aquaculture a
profitable and competitive industry in the country like agriculture and horticulture, preferably within the
next ten years.

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 3. Mission

To create business opportunities and provide employment, produce quality fish in an efficient manner,
increase shareholders value and employee success by using up-to date fish farming methods and future
technological know-how.

3.1 VISION
To become Zambia’s premier supplier of quality and value for money fish with a noticeable presence
across the country.

CORE VALUES

• Integrity
• Professionalism
• Excellence
• Commitment
• Honesty
• Customer care
• Responsible

3.2 GOALS
• To secure a reputation of high quality products and services backed by a high caliber of
management
• To have unparalleled commitment to customer care/service
• To complete and deliver all our jobs on time and within the set budgets
• To stick to quality products that will be value for the customer’s money

3.3 OBJECTIVES
As performance yardsticks, we will put a number of smart objectives to help where we see ourselves in
the future.

S Specific
M Measurable
A Attainable
R Realistic
T Time bound

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 4. Business Model

Tilapia fish fingerlings will be stocked at a stocking density of 8 individual fingerlings per cubic meter in
a pond of 30mx30m. Based on assumptions above, the percentage survival rates and mean body weights,
the total biomass will be determined over the 28 weeks growth period. The fish in the ponds will feed
daily by assuming that the feed is to be distributed two to three times a day in equal portions. The average
size by weight and the estimated total biomass of the fish population in the pond will be the basis for
determining the total daily ration requirement. A general guideline for daily feeding rate of fish in water
temperature above 24°C is given in Table 1.

Table 1.Guidelines for feeding rate of fish.

Weight of fish (g) Feed Per day per 1000 fish

100 2.5 kg
125 3.1 kg
175 3.7 kg
200 4.3 kg
225 5.3 kg
250 5.7 kg
275 6.1 kg
(Note: This information is in line with Aller Aqua Zambia limited feed Production Company)

The daily ration formula for calculations

Daily feeding = F x (XY/1000) Kg of feed.

Where:
a. X = Average body weight of fish in grams
b. Y = Estimated total number of fish in the pond
c. F = Feeding ratio (see different ratios in relation to body weight in (Table 2).

The supplementary diet will be prepared using pig manure .The ponds will be fertilized to stimulate the
production of suitable natural organisms (phytoplankton and zooplankton) that serve as food for fish. At
the end of the 24th week 7,200 fish will be harvested from each pond and a net production of fish obtained
will be sold at K25/kg. These operations are summarized in Table 3. The ponds will then be cleaned,
repaired, limed, fertilized and restocked again.

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The main costs that will be incurred during the production cycle include; costs of fingerlings, feeds,
labour and transportation of feeds and fingerlings. All costs will be calculated and subtracted from the
revenue at the end of the production cycle giving a net profit contribution of K10, 900.

Table2. Summary: Revenue, costs and net profit contribution from one pond 900m2

Revenue:
Sales Price of 2400kg
per/fish pond 25 K./kg
Income 60,000 K.
Costs:
Other costs
Feeding 8,000 K
Fingerlings 3,600 K
Labour 2workers 3000 K
Transport 2000 K
Other Costs Including
Tax, Insurance and
loan Repayments 32,500 K
Total Costs 49,100 K
Total Income 60,000 K
Net Profit 10,900 K

First year of operation

For the farmer to be able to have continuous production, one pond will simultaneously stocked with fish
fingerlings every after two months. With a harvest of 2,400kg/ per /pond. More yields will be realized in
subsequent years of production.

Yearly operating costs are composed of variable and fixed costs. Variable costs are cost factors that are
likely to change over the operation period. The variable cost factors in the present case include acquisition
of fingerlings, feed and labour costs. For example, the price of feed and fingerlings can easily fluctuate
within a short period of time. The fixed costs considered include the payment of salary, because
employees are permanent at the farm.

An insight into the performance of the farm during operations will be monitored using the investment and
income model. This is useful to the operator as it tells whether the venture is feasible and what would be
the payback period of the investment. Later this would be used for farms in real life to plan their
operations and cash flow. For instance, for a farmer who is in operation, the investment and income
model can be used as a tool to track the performance of the farm and see if the farmer is realizing sales
and profits as projected.

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Figure 1: Investment and income from of 1-hav fish farm over a period of ten years.

Operating costs
Operating costs include fixed costs and variable costs. Fixed costs are associated with the long-term
operation of a fish farm. Examples include taxes (on property), insurance, depreciation, interest,
modernization payments (for repayment of borrowed money). These costs are often overlooked but must
be considered in assessing the financial situation of a fish farm. Variable costs are the costs that vary with
the size of the fish farm or the number of ponds being stocked. Larger farms (or stocking more ponds)
have much greater total variable production costs than smaller farms. Examples include feeds,
seed/fingerlings, fuel and/or power, harvesting costs, and labour.

5. Income Sources

All other forms of income put together (This is will contribute to the purchase of feed, fingerlings,
transport and labour costs)

6. Key Factors

Samabe General Dealers is a business which would be located in Chisamba district, which is
surrounded by farming communities. With the basic knowledge of fish farming a tilapia production
firm cannot target a specific section of consumers, since tilapia is food for every family and
household, that wants to prepare a meal. With this information, we chose Lusaka, based on it been a
capital town for easy export and the availability of resources (fresh water) and good land and also
creation of employment for the community.

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 7. Market Overview
7.1.1 Trends in Demand

The fish industry reveals a sharp and upwards trends for the demand of tilapia in Zambia and the world at
large. Most consumers are conscious of their health and body. Thus these increases in demand are
beginning to stress the world’s natural fisheries, which are generally considered to be at or near their
maximum sustainable yields thus increasing the demand for the fish raised in aquaculture facilities.

7.1.2 Trends in Supply

We realize that since we will be supplying some of our products through key distributors, some might
default in paying for goods purchased on credit. In managing, discounts will be given to customers to
entice them to pay on time.

7.1.3 Proposed Main Buyers and Suppliers

The fish farming industry is a slow growing industry in the Zambian agricultural sector which is made up
several agents of the market involving wholesalers, retailers and individual consumers. The market is
dominated by wholesalers who will buy on large scale and then later distribute to retailers to be made
available to the individual consumer. The farm will also be supplying to other stakeholders such as the
restaurants, chop bars, hotels etc. The relative share of the above mentioned role leaders in the industry
are illustrated below

7.2 Current and Projected Market Share

There is an increasing demand of fish on local, regional and international markets. This is attributed to the
increasing population among other factors versus the declining supply from the natural water resources.

Tilapia is the second most popular farmed fish species globally

The farm intends to sell fish of 300-500 grams (average weight) which attracts a higher market demand as
compared to other sizes, while allowing effective production of three (3) cycles per year.

Tilapia being a native fish species to Africa, it is a traditional and favorite dish to many communities in
Zambia.

Tilapia attracts a low market value as compared to the other protein sources for example a kilogram of
fresh tilapia is at K25 whereas that of beef is at K30 and chicken at K45 . Thus tilapia provides the most
affordable source of protein in both poor communities and urban centers.

It is our ambition to make available our products to all close and far from our premises, through our well
designed distribution channels to enable us to meet our expected revenue.

However much attention shall be given to the under listed target groups in order for us to gain 75%
market share,

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  Restaurants.
 Hotels.
 Chop bars.
 Supermarkets.
 Households.

Clients and customers can place orders via our email services or can fax us, for the transaction to begin
even before they get to our premises.

7.3 Competitiveness Analysis

Hatyoka fish farm will secure an end market for our local brand of fish. Our approach will be two-
pronged: first we will ensure the off take of our packaged output to large retail centers, and second our
traditional marketing efforts will drive consumer purchases of our unique product. And our major
competitors are, Yalelo fish farms, Lake havest and Capital fisheries. We will drive consumer purchase
by promoting a brand that is high quality and uniquely Zambian. Our branding strategy will be to target
the lower-, middle-, and upper-income market segments as they all purchase fish for everyday meals

Hatyoka fish farm will rely on very frequent traditional marketing methods as a way to beat our
competitors, such as radio advertisements, billboards, and taste tests on-site in supermarkets to drive first
time trial of our product. We also plan to get government endorsements of our product as a product that is
100% produced and packaged in Zambia. We will encourage repeat trial of the product by linking
purchase of the product directly to the nearby communities in our farm via advertisements and social
media.
The social media portion of our branding strategy will involve launching pages on Facebook, Twitter, etc.
and sharing stories of our farmers on a regular basis. The largest cost driver for this piece of our
operations will be the traditional marketing spend on advertising space as we plan to flood the market
with our unique positioning early and often and eventually become the number fish supplier throughout
the nation

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 .
Competitive analysis Table

PRODUCTS PRODUCT RATE SEGMENTS SALE.AFTER TRUST ADVERTISMENTS CUSTOMER LOCATION

QUALITY COVERED SERVICES FEEDBACKS
Self 10 10 10 10 10 10 10 10 10
Yalelo 10 10 7 5 5 5 7 6 10
Lake 10 7 5 4 5 4 4 3 7
Harvest
Capital 10 10 4 5 5 6 8 10 10
Fisheries
Rank Each Factor- 1 to 10 according to our research & analysis of market

Key competitive advantages:

1. While a competitor can replicate these savings, but the trust and goodwill will build with our
community of consumers over the years will not be easily replicable.

2. Vertical integration: One stop-shop for consumers and fish training projects to optimize inputs

3. Local Zambian brand: government and consumer support

4. Skills acquisition for youths: from youth to businessman

As a result, we will appeal to the target markets of many of our competitors while offering services
superior to each of the components of the value chain.

7.3.1 Location of business operations

Samabe General Dealers headquarters will be located in Lusaka the capital city of Zambia, as a chosen
geographical location for our fish ponds due to good climate conditions and the availability of fresh
natural water reservoir, and will be conducting its operations in all nearby town and the nation at large.

7.3.2 Technology used in Production and Marketing of Goods and Services

Samabe General Dealers will engage in use of modern and technical skills of fish production with
qualified and skilled personnel to produce good quality fish whose demand is high on market. We
also look forward at conducting six interviews at three open air markets in multiple Zambian cities, where
the lower- and middle-classes purchase their products, and three high-end supermarkets. These
conversations will reveal consumer preferences; pricing and margin trends for fish and product
transportation costs and challenges.

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 7.3.3 Volume of Production

The production system will consist of 6 fish ponds of (30m x 30m x 1.3m depth) with a free board of
0.1m thus the actual volume is (30m x 30m x 1.2m=900m2).
Water will flow from a permanent spring into fish ponds from which it will be pumped by an electric
pump. The fish ponds will be equipped with an Aeration machine which will supplement on the
oxygenation of the waters.

For a start, fish ponds will be stocked with sex reversed male fingerlings from Chilanga fisheries, tilapia
at a stocking rate of 8 fingerlings per/m2. Thus each fish pond of 900m2 will be stocked with 7,200
fingerlings thus will have 2400kgs of fish harvested per/fish pond.

7.3.4 Quality of Products/Services

The farm is aimed at producing high quality fish that is competitive both in the local and Regional
markets. The farm will also access extension services from fisheries training institutes to monitor the
quality of fish production. We shall in-cooperate with other fish farmers in the region thus sharing the
knowledge on high quality fish production. Therefore the farm will have an easy access to the various
major fish markets, aquaculture inputs suppliers, and equipment repair services among others.

7.3.5 Cost of Production

In the long run, Samabe General Dealers will use its ponds more efficiently and has the potential to
reduce the cost of doing business compared to other competitors with a view of reducing price of fish on
the market.

7.3.6 Price of Products/Services

A major strategy of Samabe General Dealers is to offer the fairest market prices to our consumers to
ensure a high volume quality inputs for the factory and drive down the cost of production. The marginal
cost of paying above-market prices for fish produced in our network is lower than the marginal cost of
running the fish farm below capacity, thus providing us with a continued incentive to pay a fair price for
our products. Samabe General Dealers will strive to keep its gross margin at the minimum required to
cover costs of the raw inputs, operating costs and overhead, and to show a reasonable profit. However, an
effort will be made to accumulate sufficient reserves to permit Samabe General Dealers to continue
expanding and allow more farmers access to our economies of scale and to end consumers. Operating
costs will be kept to a minimum.

Selling prices will be based on market information about the price levels of competitors and prevailing
retail operating margins. Working closely with our key partners we aim to develop long term supply
agreements to align our production forecast with retailers’ respective growth strategies through our good
customer services.

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 7.3.7 Financing Sources

Samabe General Dealers will be partly funded by interested parties or donors. With the proposed
project loan of K450, 000

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 8.0 Management Strategy

8.1 Personnel

Samabe General Dealers will have a Board of Directors composed of the Executive and Non-Executive
members as mentioned in the executive summary therefore production activities will be managed by a
qualified supervisor from fisheries institute who will supervise the workers on the daily activities of the
farm and hold all the information concerning the farm and its production process, nine (9) workers will
carry out the daily activities of the farm like supplying the feeds to the fish every day and one security
personnel who will ensure safety of the properties on the farm.
Therefore, the farm will have a total of 10 workers.

8.2 Phasing of Investments and Business Operations

Phase 1: Three Months (Feb, Mar and Apr 2025)
a) Fish pond construction
b) Building Structures and fitting equipment’s
c) Fencing the establishment for security purposes

Phase 2: Stocking One Fish Pond after Every Two Months Starting From May 2025

Phase 3: Harvesting and Marketing Six Months from Stocking November 2025

9. Budgets

Infrastructure Quantity Unit per/cost Total cost (ZMK) Funding

(ZMK)
Fish ponds excavation 6 4,000 24,000
Dam lining (500 6 30,000 180,000
micron)
Building Structures 3 25,000 75,000
Cold room 1 81,000 81,000
unit/installation
Fish smoking 1
unit/installation 48,000 48,000
Aeration equipment 1 10,080 10,080
Fencing of 75m x 1 33,000 33,000
120m
Grand Total 451,080
Note: Other requirements will be funded by Lusaka Teachers Fish Farm Cooperative

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 10. Work Plan

Lusaka Teachers Fish Farm Cooperative

February March April May June July Augus September October November December January
2021 2021 2021 2021 2021 2021 t 2021 2021 2021 2021 2021 2022
Infrastructure Infrastructure Infrastructure Fingerling Fingerli Fingerling Harvesting Fingerling
development development development stocking ng stocking Pond Pond 1 stocking
Pond 1 stocking 3 plus Pond 2
Pond 2 fingerling plus
stocking fingerin
pond 4 g
stocking
pond 5
&6
Note: This spacing of fingerling stocking will be used to enhance the continuous supply of fish throughout the year.

11.2 Drawdown Plan

5.0m 5.0m

POND 6 POND 5 POND 4

POND 1 POND 2 POND 3

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STRUCTURE LEGEND

A. OFFICE/ FEED STORE

Size: 4.0m x 8.0m
B. COLD ROOM/ CLEANING
Size: 4.0m x 8.0m
C. SMOKER/ STORE ROOM
Size: 4.0m x 8.0m
D. FISH PONDS
Size: 30m x 30m
E. FARM BOUNDARY
180.0 m x 140m area size allocated for fish ponds 75m x 120m
1) Fish Ponds Construction:
Plan Area 900m2
Add sides 180m2
Total = 1,080m2 each pond
 Dam Lining Required = 1100m2
Using 500 micron approximately 25/m2 = K27, 500 for each dam
 Dam Lining Welding = K2,500 each dam
 Dam Excavation using J.C.B Excavator Machine = K4,000

Total Cost of Fish Pond Construction = K35,000 x 6 fish ponds = K204,000

2) Building Structures
 Office and Feed store
 Cold Room and Cleaning Area
 Smoker and Store Room

Estimated Cost of Buildings Each 32m2 at K25.000 (Simple Structure).

For 3 Buildings =3 x 25.000 = K75,000

3) Equipment’s
 Cold Room Unit

Mobile Cold Room Size 1.45m x 2.0m x 2.0m =K78, 500

Add estimate for Transportation and Installation K2, 500

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 Total Cost Of Unit Ex Golden Key Investments Ltd. = K81, 000

 Fish Smoking Unit

600ltr Unit Free Standing = K45, 500
Add Estimate For transportation and Installation = K2, 500
Total Cost Of Unit Ex Golden Key Investment Ltd. = K48, 000

 Supporting Equipment
Electric Pond Aerator Unit
Unit Cost Ex Camco Equipment Ltd = K10, 080
Total Cost Of Equipment’s = K139, 080

4) Box Wire Fencing Complete With Gate

Quotation Ex Livestock Lusaka = K25, 500
Add Estimated Labor for Erection and Transportation = K7, 500
Grand Total Fence = K33, 000

Overall Project Estimate (Summary)

Pond Construction = K204, 000

Buildings = K75, 000

Equipment’s = K139, 080

Fencing = K 33,000

Total Cost Of Establishment = K451, 080

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 11.4 Results

10.4.1 Profitability

Assumptions: In the first component of the profitability most we consider the cost of buying fingerlings,
feed, calculation of biomass in the pond, mean body weight, number of fish at the end of production. The
1 years production plan which will be effective as presented here.

Profitability: Break Down of First Harvest November 2021

Items COST
Amount in ZMW
Stocking fingerlings (7,200) per/fish pond
K3,600
Feed K8,000
Labor 2 workers ( K1,500 each) K3,000
Transport K1,500
Others K500
Total Cost K16,600
Income
Sales 7,200 fish /3fish per /kg = 2400kg at
K25per kg K60,000
Expenditure
Costs K16,600

Loan Repayment per/harvest K7,500

Others Tax, Capital Reserve K25,000
Total Expenditure K49.10
Profits
Income K60,000
Total Expenditure K49,100
Total Profit K10,900

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11.4.2 Sustainability

Our “Sustainable development is development that meets the needs of the present without compromising
the ability of future generations to meet their own needs”
We will have four aspects to sustainability at our fish farms: technical, economic, social and legal.
However, this sustainability will often be considered from an environmental perspective.

1. Technical sustainability: As with any other productive activity, in order to be sustainable

Samabe General Dealers will be technically adequate and feasible (technical sustainability).
Specifically, for it is necessary for Samabe General Dealers to identify the appropriate
technologies, either imported or locally produced, and to utilize them properly within the
production cycles.

2. Economic sustainability: Samabe General Dealers will be economically viable (economic

sustainability). Otherwise, our fish farm may decide to focus their efforts on other opportunities.
Economic viability requires our fish farm to be profitable and competitive over time.

3. Social sustainability: Samabe General Dealers will be socially acceptable (social

sustainability). Social acceptability, also known as social license, refers to the degree to which
our products will be accepted by local and neighboring communities, the various interest groups
and society as a whole. These attitudes to Samabe General Dealers are largely determined by its
perceived benefits.

To be socially acceptable, our operations will benefit a broader proportion of society, including
women and young people.

4. Legal sustainability: To enable the development and growth of the company, Samabe General
Dealers will be governed by adequate, clear and stable laws and regulations (legal sustainability).
Laws and regulations in which the rights and obligations of each actor are clearly defined
reassure entrepreneurs.

11.4.3 Socio-Economic Impact

Samabe General Dealers intends to play a vital role in providing employment to the community in
Kafue district and will sustain income in most households and will play a major role promoting
investments in Kafue thus moving towards government agenda in boosting the agriculture sector under
aquaculture productions and our major economic impact is to reduce poverty.

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 12. Proposed Security for Loan

Our proposed loan security depends on our five acre farm land and the profitability of the project

Risk Assessment

What are the potential risks How likely is the risk to occur What is planned to minimize
that may need to be managed? (high, medium, low)? potential risks if they occur?
Disease problems may result in low Good management of the ponds by
loss of fish employing skilled personnel

Price fluctuation High To reduce the production cost to

enable us to lower the price of fish
on the market
Theft medium By fencing the establishments
Risks which cannot be managed Would be under Insurance cover

13. Business Background

The owners of this business realized the need to start this company to provide fish (tilapia) that will
improve the nutritional health of the citizens of this country. Our establishment will improve on the
quality and add values to the product as compared to those in the market. The name Samabe General
Dealers was formulated using the location of our farms the name of the shareholding company.

13.1 Dates of Registration and Commencement of Operations

Samabe General Dealers was registered under our cooperative which was registered in 2021 as livestock
producers and crop farmers.

14. Ownership

Samabe General Dealers is a partnership owned farm.

15.1 Shareholding

Samabe General Dealers has shareholders who established the company as a Board.

15.2 Board of Directors

The Board of directors is composed of a chairman and a Board member.

Senior Management Profiles

The Board Chairman is a clearing forwarding office

speaclist

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 15. Country Factors
15.1 Legal and Regulatory Framework governing our Industry

Labor laws, local authority by-laws, Zambia Revenue Authority (ZRA) on tax compliance, Ministry of
Lands and Ministry of Agriculture

16. Major Stakeholders

international market

17. Current Creditors and Debtors

None

18. Litigations against Company

None

Annexes
1.0 Projected Financial Statement

 The estimated expenses for start-up and operation of the farm are K520, 000.
 The projected income for the farm =10harvests minimum X K 60,000per harvest=
K600, 000per circle. Therefore five circles = K600, 000 X 5 =K3, 000,000(five year
income).
 The projected profitability of the farm = K10,900per harvests X 10 harvests = K109,000
one year profit X 5 years loan duration = K545,000
 The anticipated fixed assets include land, water pump, fish ponds and other
infrastructures.

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