Fish is one of the cheapest sources of animal protein and the most widely accepted animal product in Africa. Unlike pork (and maybe snails), it is heavily consumed across the various religious, ethnic and social lines that crisscross the African continent.

With the growing awareness for healthy meats, fish is gradually gaining the upper hand in many African kitchens and dishes. It has rapidly risen above its traditional reputation as a poor manโ€™s protein to a healthier alternative to beef, chicken and pork.

Fish grows very fast and can be sold within six-eight months. Though there are many websites with good information about fishery Business, the price of a table size fish and cost of your operation cannot be determined by anything youโ€™ll read online.

The cost of fish and any other product depends on your local market and market forces like demand and supply, festive season, government policy, etc. Thatโ€™s why we encourage you to go out and make a research about your intended market.

Demand For Fish In Africa

Fish caught by fishermen in the rivers and coastal waters of Kenya and entire Africa, supported by imports from Europe and Asia, have been the traditional sources of fish to our markets.

However, the decreasing fish stocks in rivers and oceans across the world (due to global warming and environmental pollution) have severely affected fish supplies.

As supply is unable to keep pace with the demand of an exploding African population, fish has continued to attract higher prices in our markets.

For many years, fish was the cheapest source of animal protein for Africans; nowadays, it has become almost as expensive as beef, chicken and turkey.

In an attempt to close the gap between demand and supply in the international fish market, many countries in Europe, the Americas and Asia have taken to fish farming (aquaculture) to shore up fish supply.

Fish farming is a profitable business. in kenya

According to the Food and Agricultural Organisation (FAO), fish farming currently accounts for more than 30 percent of global fish supply; of which Africa as a whole contributes less than 2 percent! We were shocked too!

Fish farming remains significantly untapped and unexplored in Africa, as only secondary and part-time efforts by small-scale fish farmers attempt to support local consumption.

This is obviously not enough!

Of all the possible fish breeds that can be farmed on the continent (tilapia, catfish, carp etc), the African catfish and tilapia have proven to be particularly successful. These breeds are highly adaptive to the African climate and are very suitable candidates for fish farming.

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The African Catfish can survive for long periods outside water due to its amazing ability to breathe air directly from the atmosphere. They are omnivorous (can eat almost anything) and also have a high fertility rate which allows them to reproduce all year round.

Many fish farmers in Kenya fail today because of lack of foresight to implement change at the appropriate time as the business runs. To run a successful fishย farm, you need to able to move your business from one stage to another, so as to create wealth and build up sustainably. However imperative causes of why most fish farmers fail and possible solutions would be pointed out in this post:

Why fish farmers fail in their business in Kenya

1. Poor Farm Location

Such as in a place with inadequate water supply, poor soils forย pond constructionย (e.g. may be rocky), far away from markets and/or supplies, etc.

2. Poor farm and facility design

Ponds not compacted properly, leak a lot, maybe too shallow, and consequently, construction and maintenance costs become too high while optimum yields are not achieved. Poor ease of access to ponds, requiring workers to walk across difficult terrain to transfer fish from pond to vehicle or vice-versa.

3. Poor Investment Plan

Several farmers assume that to be a commercial fish farmer one must have several large ponds. Hence, they construct many ponds at once, which constrains their cash flow. Because of this, some farmers take a while to start production or may only afford to start production in one pond after all the investment.

4. Lack of Marketing strategy:

Most farmers Start looking for the market for fish when the fish is ready for sale. Meanwhile, because they are still feeding, the pond attains its maximum limit and fish stop growing. The longer the fish stay in the pond after they have stopped growing, the smaller the profit margin.

5. Not employing the right staffs

Employ the right people. Employing family members who have little or no passion to learn fish farming techniques is a liability because most people find it difficult to dismiss them even after it has become obvious that they are the reason for the poor performance of the fish farm.

6. Telephone farming

No direct involvement in production and management activities of the farm.

7. Irregular and improper feeding

This ranges from complete lack of knowledge about the nutritional requirements and feeding of fish to reduce cost by using cheap feeds. Some farmers just do not feed their fish because they think fish will grow as long as they are in the water. They do not realize that like all animals,ย best performanceย would be obtained if the fish are fed a balanced ration and that the feed needs to be palatable, easily digestible and does not disintegrate into the water before the fish can consume it. Fish should be fed with the correct feed of the right quality.

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8. Lack of proper records

A farmer is therefore unable to tell whether a profit or loss will have been made. Having money in oneโ€™s pocket after a sale does not imply one has made a profit. Some farmers do not want to keep records because they are scared of facing the harsh realities of a loss. Unless one is able to face the bitter truth and correct his/her management practices, there wonโ€™t be any improvements and the business will eventually collapse.

9. Expand the business as a solution to low profit and yields

It is a bad business decision to expand a failing business without first finding out what the causes of the failure are and correcting them.

There is a valve , check the pic , i always drain excess water before and after rains . I use rhe water for a small horticulture project. Fish farming is lucrative

A Few Keys to Successful Fish Farming Investments

Based on our experience advising both private and institutional investors, here are some of our keys to successful investing in aquaculture.

  1. Top management is key

    as with all investments, finding a strong management team that has a solid mix of technical expertise and aquaculture business management skills is critical to success.ย  An inexperienced, unbalanced, or incomplete team could be a recipe for disaster. Invest in people you believe in.

  2. Location, location, location

    superior sites yield superior biological results and when it comes to aquaculture, an abundant supply of high quality water, the right climate, and where appropriate, good soil quality with ideal texture for fish pond construction, are all key ingredients.ย  Proximity to traditional infrastructure, aquaculture infrastructure, and strong markets for the farm-raised products are all important ingredients for success.

  3. Minimize risk

    A good start is an honest assessment of a qualified investorโ€™s tolerance for risk.ย  Seed and early stage aquaculture development companies are always more risky and this is especially true in aquaculture.ย  While seed stage investments in aquacultureย offer ground floor opportunities and higher levels of ownership for a given level of investment, investing in more mature and profitable aquaculture companies should be the first choice for the more risk adverse investor.
    For example, investing in an aquaculture feed company, a new aquaculture technology with wide ranging application, or even an established aquaculture equipment manufacturer are all ways to reduce exposure to farming-specific risks like disease yet still achieve the desired industry exposure.ย  For more risk tolerant investors who prefer to be involved in the production end of the industry, selecting the right species is one way to mitigate some of the risk associated with growing live animals.ย  Farm-raised species like salmon, shrimp, and tilapia all have well established farming methods in place and markets for these species are well established, all of which serves to lower overall risks.

  4. Economic sustainability

    one of the most common causes of failure in the aquaculture industry is a lack of capital to see the project through the early development and first yearsโ€™ operational phases.ย  Prospective investors are well advised to use conservative projections and be prepared to inject cash into the actual aquaculture operations for at least the first year and most likely longer depending on the type of species and details of the expansion plan.ย  Cash reserves should always be set aside for unexpected events such as disease, seasonal contractions in wholesale prices, early year expansion plans, unanticipated delays in full payment of accounts receivable, and more.

  5. Maximize returns of Fishery Business

    while not required for profitability, the greatest returns on investment in the aquaculture industry are achieved by maximizing economies of scale and internally controlling all the major components that go into producing the final form of the farm-raised product being grown.ย  At each level, incremental higher returns are achieved by investing in research and development, hatcheries, aquaculture feeds, grow out operations, processing plant operations, seafood sales, marketing, and distribution.
    Fully integrated companies that control all phases of aquaculture operations are well positioned to return the greatest profits. ย Most qualified investors start with much smaller and more conservative investments and initially focus on one particular segment of the industry.

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