Feasibility Study of Establishing a Pangasius Growing Farm in Norzagaray, Bulacan

Date

4-2012

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jimmy B. Williams

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Abstract

Pangasius is a freshwater fish that was first introduced in the country as an ornamental fish that has now gained recognition as a food commodity. Local production of Pangasius is currently being reinforced because of the opportunities both in the local market and the global market.

This study aimed to determine the feasibility of establishing and developing a Pangasius growing farm in Brgy. Tigbe, Norzagaray, Bulacan. The specific objectives are: (1) present the Pangasius growing farm and its planned operation; (2) determine the market, production, organizational and financial viability of operating the business in Norzagaray, Bulacan (3) To identify potential risks and problems involve in the business; and (4) recommend specific courses of action based on the findings of the study.

Primary data where obtained from interviewing key informants and respondents of different players in the industry. On the other hand, secondary data where obtained from books, journals, magazines, online documents, and undergraduate special problems in the department. The research design used is the descriptive type. Financial measures like NPV, IRR, and payback period were used to analyze the feasibility of the project.

To determine the suitability of the land for the project, technical guidelines were compared with the land profile. The project site was suitable since it was able to meet the technical requirements for fish farming operations specifically Pangasius growing culture.

The 2.2 hectare of the 3 hectare land will be used for the project and will be stocked with 133,200 fingerlings every culture. The level of production will vary every year. It will be sold to Baycove International under a contract growing scheme for Php 45.00 per kilogram. Fingerlings will be purchased from Baycove International as part of the contract growing agreement. On the other hand, full commercial feeding will be applied and will be purchased from Vitarich Corp. Other materials will be purchased from local agricultural stores.

The business will operate as a single proprietorship and will be managed by the owner/manager. There will be one caretaker and two regular workers while seasonal workers will be hired during labor intensive activities.

Based from the financial aspect of the project, the initial investment is Php 6,027,477.04. This will come from the owner’s equity. For evaluation of the financial viability of the project, NPV, IRR, and payback period where used. The result of this analysis proved the project to be feasible in the base and first scenario with an NPV of Php 8,554,120.39, an IRR of 37% and a payback period of 2.48 years for the base scenario and an NPV of 1,479,684.81., an IRR of 20%, and a payback period of 2.77 years for the first scenario. However, the project resulted to be infeasible in the second scenario with an NPV of Php (8,348,063.32) and an IRR of -20%. The project was feasible in the first and base scenario because both of these scenarios follow a six month culture period while the other scenario followed a seven month culture period. This shows that an additional month of culture period will result to a very high production cost that would make the project infeasible especially that the buying price of the product is fixed because of the contract growing scheme. This can also be attributed to a faster production cycle and more number of croppings when the culture period is six months.

Potential risks and problems were identified in the marketing, production, and organization aspects. Recommendations were included to address these problems and additional recommendations were also stated for the improvement and growth of the business.

Language

English

LC Subject

Ornamental fish fisheries, Farm management.--Decision making

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2012 M17 Z36

Notes

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Document Type

Thesis

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