Fish Farm Feasibility Study

6212 Words May 4th, 2011 25 Pages
Preparatory Investigation: The Water Resource, Land and and Buildings, Market and Prices

The Entrepeneurs

A young couple in Iceland, Johann and Rosa, have taken over Johann's parents' farm. Traditional husbandry of cattle and sheep for production of meat and dairy products has gone through a rough time so they have been looking for new opportunities in their farming. Johann believes that arctic charr might suit them well. Before making up their mind they inspect their water resources, the features of their land and other factors that might support or rule against their hopes. They also study the basics of fish farming, collect information on what facilities are required, prices of material and equipment they would have to buy and, of
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They intend to buy fry at 10 g, grow the fish to 1 kg and sell all their product to a single distributor. They will bleed the fish at the farm, then transport it iced in fish-tubs in trucks to the distributor's factory for gutting and packaging. The business plan they will finally present is based on the facts and opportunities they discover through their investigations and calculations before making the final decision. After studying the options and costs of getting the final product to the market as shown in table below , and customer demand, they decide that 40% of their product should be sold as fresh fillets and 60% as fresh, gutted fish. The average return price/kg live fish will be 4.18 ECU/kg (see table).
|The final price of your product in ECU/kg |
| | | |Ship |Air freight |Ship |Air freight |
| |Gutted |Fillets |Frozen fillets |Frozen fillets |Frozen |Frozen |
|CIF-price |5,92 |10,53 |9,67 |10,13 |5,53 |5,92 |
|Freight |0,79 |0,99 |0,24 |0,86 |0,26 |0,86 |
|FOB-price |5,13 |9,54 |9,43

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