Enactus UCU. Project Fish Farm Business Plan

Transcription

1 Enactus UCU Project Fish Farm Business Plan 2015

2 Table of Contents EXECUTIVE SUMMARY 3 ENACTUS UCU 3 REDHILL BARAKA SCHOOL 3 FISH FARMING 4 DESIGN AND DEVELOPMENT 4 CURRENT SITUATION 4 FUTURE PLANS 4 ACTION AND MARKETING PLAN 5 START UP COSTS 5 REVENUE AND PROFIT 5 LONGTERM PLAN 6 A SECOND FISH FARM 6 APPENDIX 7 FINANCIAL DETAILS 7 2

3 Executive Summary Enactus UCU Enactus is an international student run nonprofit organization focused on improving the quality of life and living standards for those in need. With the aid of academic advisors and business experts students aim to design sustainable projects for target groups, focused on empowering and improving their lives. In contrast to other forms of humanitarian organisations, Enactus aims to empower the target communities through the use of social entrepreneurship. Guided by academic advisors and business experts students of Enactus design a business approach which will provide the target groups with the necessary skills and resources for selfsufficiency. We, at University College Utrecht, are one of the 17 Enactus teams based in the Netherlands. We are part of the Fish Farm Project, a project focused on building a fishfarm for Red Hill Baraka School to generate income to fund scholarships for orphaned and needy children. Redhill Baraka School Redhill Baraka School (RBS) is located in Gachie, a settlement on the outskirts of Nairobi. Gachie has long been associated with crime and although this is changing, there is still immense poverty in the neighbourhood. Red Hill Baraka School originally started out as a primary school solely for orphaned children, and received sponsoring from several organisations. Unfortunately, funding was withdrawn from the school, due to internal corruption of the managing staff. It led to auctioneers coming in to close the school and the children who were illegally boarding at this school were forced to find shelter in the bathrooms. The former managing director had disappeared with the remainder of the money, and the building was on the brink of collapse. Before, the school officially closed; a teacher approached Lazarus, who had already been active in saving schools on the brink of collapse. He decided to come help out. Lazarus, who works voluntarily as the head master, insisted that the school did not need money to recover, but input from the community; selfreliance is the key! and with this motto and the help of volunteers, guardians of the children and the remaining teaching staff, they have managed to give Red Hill Baraka new life. Red Hill Baraka, in the light of selfreliance the school decided to accept children who could pay for their education, to help makeup for those who could not pay. Additionally they started rearing ducks, goats, chickens, rabbits and banana trees, to feed the children, and bought a bus to be able to have more children attend the school. 3

4 Unfortunately, the road to selfreliance is not without obstacles, and Red Hill Baraka is still facing major roadblocks. The landlord, on whose land the school is located, has increased the rent from 400 to In combination with the loan on the bus, Red Hill Baraka is once again struggling, and is in danger of shutting down. Fish farming Recently the school has started fishfarming tilapia, to feed the children at school. This led to the idea that fish farming could be used to help the school less reliant on sponsorship. If the fish farm could be expanded to a larger scale it would be able to be turned into a business which should be able to generate profit that would enable the school to become more selfsufficient. This is where Enactus UCU came in. Through personal connections a board member came into contact with Lazarus and proposed a project wherein Enactus UCU would design a business plan and help raise funds to make fish farming a sustainable source of income for the school. Design and Development Current Situation Initially the plan was to build the plan was to build a fish farm on the compound of the school, this was however was not possible. After reevaluating, a decision was made to build the fish farm, on a quarter acre plot in Eldoret, West Kenya. Eldoret is currently the fastest growing urban center in Kenya and the fifth largest city in the country. Relocating the fish farm to Eldoret was a strategic move, which significantly cut costs of rent, as well as Eldoret having a suitable temperature for growth of tilapia. In the model, the fish farm project should be up and running around June/July. Having recently invested 2500, land has been rented and fenced off. An employee, Kalistas, with previous experience in fish farming, has been hired and placed on site, where he shall continue with preparations of the startup of the farm. Here a house and toilet have also been built to accommodate him, as he shall be working here fulltime. Through the help of a government initiative; a rural electrification program, there has been power installation. Future Plans The next steps shall be the excavation of fish farm pond that shall be 8 by 21 meters, which shall have a depth of 3 meters in the deepend and a shallowend of 1.5 meters. Excavation shall be performed through voluntary manual labor. A greenhouse to further stabilize temperatures shall cover the fish tank. A borehole will need to be drilled and a water tank shall be installed; this will be the source of water for the fish farm. 4

5 Fortunately, Lazarus has a good working relation with Jambo Fish Farm (Nairobi), an expert business focused on fish farming in Africa, and through them aeration filters, greenhouse materials, and other necessary equipment shall be purchased. The project shall not be involved in breeding fish, as this would incur to many start up costs, rather juvenile fish shall be bought and developed. Initial stocks of juvenile fish, as well as fish feed shall also be purchased from Jambo. The juvenile fish will be transported from Nairobi to Eldoret using the school bus, whereas the fish feed, which shall be bought in bulk every two weeks, shall be transported on shuttles (a transport system used to transport goods in Kenya) from Nairobi to Eldoret. Additionally, Aquaspark, a global aquaculture investment fund based in Utrecht7hj, is advising project fish farm. In the timeline, the fish farm will be fully functional by July The aim is to have two harvests of 6000 fish each per year, with the first harvest in January Tilapia grows to their full size, between one and one and a half kilograms in approximately 6 months. The first harvest would therefore be in January Action and Marketing Plan Start up Costs We, as Enactus University College Utrecht, will supply the Redhill Baraka School with the financial means to set up the fish farm in the first place. In the table below, you can find the breakdown of all these costs. All the costs shown here are final estimates, as given to us by our Kenyan partners. As can be seen, the total costs of getting the first pond up and running will be These costs include, apart from the much needed building materials, the payment of the rent of the plot of land on which the fish farm is situated for the first two years, the payment of the loan of the guardian for the first nine months, and the maintenance costs for the first six months. (For full financial details please see appendix). Revenue and Profit The most important part is of course the eventual profit that will be made by this fish farm. Our Fish farm would produce about 5800 full grown Tilapia filets every half year (that is because on average 200 out of the 6000 fish will not be suitable for sale). For the sale of the fish, we have made an arrangement with the urban butchery Super Cut Ltd., who are willing to buy our fish at 280 KSH per kilo. However, we are also looking into the possibility of selling the fish to local fishmongers in Eldoret itself, what would increase the selling price even more. When the Tilapia fish are fullgrown, they weigh about 11,5 kilos each. Taking an average weight of 1,25 KG, this would come down to a revenue of approx. 2,030,000 KSH per half year, or 4,060,000 KSH per year. This is a conservative estimate, using the lower price offered by Super Cut Ltd, the fact that some fish 5

6 might weigh less than others and the fact that some fish might not be suitable for sale. This comes down to a yearly revenue of approx. 39,077. The yearly costs consist of the rent of the land at 242 a year (even though we would pay for the first two years of rent), the monthly salary of the supervisor on site at 87*12 = 1044, the maintenance costs (including fish feed) of 213*12= 2556, miscellaneous and unforeseen costs (including electricity) at 2500, and the initial fish stock of 6000 fish one every six months, coming down to 2*900= The total yearly costs will thus be 7142, which results in a yearly profit of 30,935. Longterm plan A second fish farm In anticipation of growth, a quarter acre of land was rented to allow for enough room to build a second fish farm. Furthermore, the start up costs of this would be significantly lower. Electrical installation, land, bore hole and water tank will all have already been paid for. Ideally a second fish farm would be up and running in June 2016, allowing Redhill Baraka School to benefit from four harvests of fish per year. This would equate to approximately 60,000 profits per year. A second fish farm would allow for four staggered harvests per year, which would not only increase profits but importantly also be a failsafe and provide an economical buffer in case one of the harvests got infected by disease. Closing remarks With 30,935 as yearly profit from a single fish farm, the Redhill Baraka School will be able to become fully selfsufficient. We would therefore like to ask you to help us make this wonderful project happen, and give the students of RBS the chance to get a good education, and the opportunity for a better life! 6

7 Appendix Financial Details Item Estimated Cost (KSH) Estimated Cost (Euros) Number Pond Liner 52, Total Cost (Euros) Pump 56, Aerator 7, Thermometer (digital) 5, Pipes 29, Water tank 36, Water tank elevation + materials 14, Greenhouse 218, ,112 Transport costs (Nairobi Eldoret petrol) 22, Borehole (machine excavation) 82, Borehole supplies (stones etc.) 19, Accessories (taps, fittings, etc.) 22,

8 Rent (yearly) 25, Power installation 6, Fencing 9, Housing structure materials 29, Toilet building: Corrugated iron Cement Ballast and logs Nails, timber, steel bars Transport 10, ,400 6,400 1, Total 12, Salary (monthly) 9, Cumulative other technical labour 21, Fish (initial stock) 15 (*6000) , Maintenance costs per month (including fish feed) 22,000 (*6 = 132,000) ,278 Incidental 38, Total cost 1,035,702 10,148 8