SMALL-SCALE CAGE CULTURE OF RED TILAPIA IN PERAK RIVER, MALAYSIA
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1 SMALL-SCALE CAGE CULTURE OF RED TILAPIA IN PERAK RIVER, MALAYSIA This project is the outcome of a group efforts to whom credit and technical responsibility go. This project is based on an assignment which was given to course participants and supervised by Dr. Abdel Rahman El Gamal as a part of F C D T T annual course is organized by the Egyptian International Centre for Agriculture - (EICA). Names, photos and countries of the team members are shown above and in a following slide 2014
2 SMALL-SCALE CAGE CULTURE OF RED TILAPIA IN PERAK RIVER, MALAYSIA
3 Team Members Abu Sayed Bangladesh Ruchira Amaraweera Sri Lanka Liew Vui Kien Malaysia Narin Songseechan Thailand
4
5 Introduction Tilapia is a popular food fish that has been pond farmed for thousands of years. Cage culturing makes it possible to grow tilapia in bodies of water where draining and seining would be difficult or impossible. Examples of tilapia species and variants commonly grown in cages are Nile tilapia (Oreochromis niloticus), Blue tilapia (Oreochromis aureus) and the man-made variants Florida Red and Taiwan Red.
6 Objectives To encourage the involvement of graduates in aquaculture sector. To increase the income of rural folks and reduce the migration to urban area. To produce 6.5 metric tons of fish with the value of RM78, (USD23,000.00) per year.
7 Project Site Perak River, Perak, Malaysia. The longest river in Perak with the length of 400km. It originates in the mountains at the Perak-Kelantan - Thailand border, and empties into the Strait of Malacca. Perak River
8 Project Site Why Perak? Fish Production (mt) in 2013 Perak Freshwater Fish Production 2013 (mt) 164,510 81,760 11,286 5,658 2,960 Clarias spp Red Tilapia Black Tilapia Perak Other states 1,310 Other
9 Project Scope Small-scale freshwater cage culture of red tilapia in Perak River for 10 years. The proposed model for this small scale freshwater cage culture of red tilapia consists of 4 floating cages with the dimension 3 4 meters and depth of 1.5 meters. The fish will be harvested twice a year with the average weight of 800g per fish.
10 Project rationality Rationality: Tilapia can be cultured at high densities in mesh cages that maintain free circulation of water. The breeding cycle of tilapia is disrupted in cages, and therefore mixedsex populations can be reared in cages. Flexibility of management Ease and low cost of harvesting Close observation of fish feeding response and health Ease and economical treatment of parasites and diseases Relatively low capital investment compared to ponds and raceways.
11 Project Description: Methodology Frame Galvanized steel and wooden planks Netting Nylon (mesh size inch) Floats Empty barrel Mooring Cement anchorage and tied to nearby trees or poles
12 Methodology (Cont.) Water Quality: Temperature ( o C) Dissolved Oxygen o C 5 7 ppm ph Free ammonia Nitrite Nitrate CO 2 Water Current Minimum water depth ppm Less than 0.3 mg/l Less than 300 ppm Less than 20 mg/l cm/sec 2 meter
13 Methodology (Cont.) Stocking: Tilapia fingerlings of 4-inch average size will be obtained from a nearby private hatchery Each cage will be stocked with 1200 tilapia fingerlings Fingerlings will be acclimatized on the site especially for temperature
14 Methodology (Cont.) Feeding: Commercial pellets Feeding adjustment daily, weekly / biweekly (flexible; based on feeding activity) Fish sampling will be utilized in feed adjustment Fish Size (g) Feeding rate (% Biomass/Day) < > Source : Sales Literature, President Enterprises Corporation, Taiwan
15 Methodology (Cont.) Sampling and harvesting: Sampling will take place monthly It will be sufficient to randomly sample about 50 specimens/cage. Fish will be collectively weighed and counted to get the average weight An adequate number about fish per cage will be individually weighed and measured to obtain the condition factor. A week before the tentative date of harvest, a pre-harvest sampling will take place to determine the harvest time and/or actions which could be needed To remove fish during sampling or harvesting, the cage is partially lifted out of the water and fish are captured with a dip net. Depending on size variation, the harvest could be selective (harvest the target size and keep smaller fish for further growth) or could be a complete harvest. Therefore, four weeks or more maybe required for complete the harvest
16 Finance and Labor Financial Source: Soft loan of RM30, ( USD 10,000.00) are given to young agropreneur youth between the age of 18 until 35 to start agriculture projects by Agrobank Malaysia with a grace period of 1 year. If the project is successful, the young agropreneur can increase the soft loan to a maximum of RM300, ( USD 100,000.00). Labor: As this is a small scale aquaculture with 4 cages, minimum labor is required and only involve family members.
17 Investment Capital Cost Item Unit Quantity Unit Cost Total Cost Fish cage (4 x 3 x 1.5m) with nylon netting and floats Unit 4 3, , Total (RM) 12, Working Capital Costs Production input Fry Pieces , Feed Kg , Service input Salary month 12 1, , Fuel month , Misc month , Total (RM) 53, Grand Total (RM) 65,280.00
18 Depreciation and Annual Operational Cost Item Asset Value Life Span Yearly Depreciation Fish cages (4 x 3 x 1.5m) with nylon netting and floats RM12, RM1, Item Year Fry 1,440 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 Feed 14,400 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 Fuel 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 Maintenance Depreciation 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Salary 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Misc 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 Loan repayment * - 20, , , , Total 39,240 75, , , , ,080 55,080 55,080 55,080 55,080 * Reference from
19 Expected Project Revenue Item Production (kg) 3, , , , , , , , , , Year Selling price (RM/kg) Sales revenue (RM) 39, , , , , , , , , , Sales revenue (USD) 11, , , , , , , , , , Total operational cost (RM) 39, , , , , , , , , , Net revenue before tax (RM) (72.00) 2, , , , , , , , , Cumulative net revenue (RM) (72.00) 2, , , , , , , , ,975.20
20 Financial Measurements Item Value Self Finance External Finance % Value % Value Fish cage (4 x 3 x 1.5m) with nylon netting and floats 12, , Working Capital Cost 53, , , Total 65, , , Year Production Costs NCF 1 39, , (72.00) 2 78, , , , , , , , , , , , , , , , , , , , , , , , , , , Total 127, IRR 40.86% NPV RM102, NPVC RM527, PBP 0.02 NPVB RM630, B/C Ratio 1.19
21 Item Sensitivity Analysis for Project Cash Flow Year Sales (RM) 39, , , , , , , , , , Expenses (RM) 39, , , , , , , , , , Income (RM) (72.00) 2, , , , , , , , , Cumulative Income (RM) (72.00) 2, , , , , , , , , Sales decline 5% Sales(RM) 37, , , , , , , , , , Expenses (RM) 39, , , , , , , , , , Income (RM) (2,030.40) (975.00) (975.00) (975.00) (975.00) 19, , , , , Cumulative Income (RM) (2,030.40) (3,005.40) (3,980.40) (4,955.40) (5,930.40) 13, , , , , Sales decline 10% Sales(RM) 35, , , , , , , , , , Expenses (RM) 39, , , , , , , , , , Income (RM) (3,988.80) (4,891.80) (4,891.80) (4,891.80) (4,891.80) 15, , , , , Cumulative Income (RM) (3,988.80) (8,880.60) (13,772.40) (18,664.20) (23,556.00) (8,133.60) 7, , , , Sales decline 20% Sales(RM) 31, , , , , , , , , , Expenses (RM) 39, , , , , , , , , , Income (RM) (7,905.60) (12,725.40) (12,725.40) (12,725.40) (12,725.40) 7, , , , , Cumulative Income (RM) (7,905.60) (20,631.00) (33,356.40) (46,081.80) (58,807.20) (51,218.40) (43,629.60) (36,040.80) (28,452.00) (20,863.20)
22 Activity Chart Year 1 Year 2 Activity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Training (Theory & Practical) Construction of cages Operation of cage 1 Operation of cage 2 Operation of cage 3 Operation of cage 4 Stocking Grow-up Harvest
23 Project Outputs Private investment =RM35,280 Loan = RM30,000 Training Small-Scale Cage Culture Annual sale revenue of RM78,336 Acquiring knowledge and skill Boost the local economy Reduce migration to urban area
24 Marketing Approach The young agropreneurs on this project are encouraged to join the nearby aquaculture cooperatives in the project area or district. Harvested fish could be sold live by the young agropreneurs in the local market, night market and pasar tani (farmer s market) The produce could also be sold to the aquaculture cooperatives which will either sell it to hypermarkets or for processing if the amount of fish is high enough.
25 Project Outlook In general, there are three identified major areas of concern which seem critical for the further development of the tilapia farming industry: the need for improved tilapia broodstock for the production of high quality fingerlings, the need for commercial production of economical feeds for intensive culture systems such as cages, the need for the development of market strategies. Despite these identified problems, the future outlook for tilapia farming in Malaysia is very encouraging. As our human population continues to increase, there will always be a pressing need for producing animal protein foods such as fish at affordable prices for our people. With the availability of a domesticated animal like the tilapia for which its environment can be completely controlled, attaining the national goal of self-sufficiency in fish seems achievable.
26 References Bautista, A.M. 1983, Cage and pen farming management and maintenance in lakes. Aquaculture Department, Southeast Asian Fisheries Development Center, Binangonan, Rizal freshwater cage for fish
27 Thank you
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