A Farm Business Plan

of

Aqua Blue Fish Farm

Proprietor: Biplop Bhandari

Contact: 9803491703
Email: [email protected]
Galchhi, Dhading

Prepared By: Biplop Bhandari

Exam Roll no: 4158
Roll no: 35
Executive Summary
Aqua Blue Fish Farm is a modern aquaculture venture established in 2024 by Biplop Bhandari
and located in Galchhi 04, Dhading. Seeing the market demand for premium quality fish
product and preference of fish over traditional meat this farm was established to provide high
quality fish products to the major market of Kathmandu Valley that is hotels, restaurants and
supermarkets. This business focuses on production of premium fresh water fish that is Rainbow
trout and different species of Carps and also other value-added products like fillet and smoked
fish. Additionally, the farm aims to enhance its branding and reputation by conducting farm
visits and homestay.
The farm places itself in a strategic location neat the Charaudi River ensuring reliable
supply of fresh water. Moreover, Dhading is just 2 hours away from Kathmandu making
transportation fast and reliable, reducing cost and less fish loss during transportation which is
an advantage against the competition. The production process is well designed with modern
equipment, raceway, water filters and pumps and a fixed timeline of stocking and harvesting
around every 3-4 months. Such an operational strategy supports both steady and scalability of
the business.
Financial projection of the business looks promising, with the NPR3,500,000 revenue
projection in the 1st year of the business. With an initial investment of NPR 4,720,000 and a
calculated break-even point at 2,170 kg of fish sales or revenue of NPR 1,899,375 across all
products. The farm is expected to have BC ratio at 1.58 and also high Return on Investment at
around 27.29%. The payback period of the farm is around 2 years and 10 months. The financial
plan includes all detailed expenses like raw material cost, labour expenses, fixed assets
ensuring farm remains profitable and sustainable in the long term. Risk Management is the
integral part of the business plan. This business plan identifies the potential risks and challenges
in the business-like disease outbreak, feed shortage market and price risk and addresses them
with ways of mitigation.
Overall, Aqua Blue Fish Farm is positioned itself as innovative changemaker in the
industry not following the industry norms and brave for trying something new and innovative.
By employing new ideas, efficient planning and financial dealings, reputation building, the
business is set to be the leading provider of premium fish in Kathmandu Valley while
contributing to local economic growth and expansion of business.
Overview of Business Plan
Name of Business Aqua Blue Fish Farm

Name of Proprietor Biplop Bhandari

Contact 9803491703

Location Galchhi 04, Dhading

Industry Aquaculture/ Fish Farming

Establishment Date Dec 2024

Name of Product Trout, Carp and value-added products like fillet and
smoked fish
Market and target customer Hotels, restaurants, and supermarkets in the
Kathmandu Valley targeting higher middle class to
high class consumers seeking premium fish products
Fixed Expenses NPR 1,532,000 per year (includes annual
depreciation, land rent, interest, and salaries)
Variable expenses NPR 680,000 per year (includes raw materials like
fingerlings, fish feed and medicine)
Initial Investment NPR 4,720,000

Loan Requirement No loan

Subsidy No subsidy

Estimated income from business Approximately NPR 3,500,000 in Year 1 (based on

sales forecast)
Total expense NPR 2,212,000 per year

Gross income NPR 3,500,000 per year (Year 1 forecast)

Return on Investment 27.29%

Breakeven point Revenue of NPR 1,899,375 or the sale of 2,170 kg of

fish (across all products)
BC Ratio 1.58

Payback Period 2.86 years or (around 2 years and 10 months)

Description of Business
Name of the business: Aqua Blue Fish Farm
Proprietor: Biplop Bhandari
Location: Galchhi 04, Dhading
Establishment date: 2024
Industry: Aquaculture/fish farming
Core Activities:
• Production of freshwater fish, such as carp and rainbow trout.
• Production of value-added products (e.g. fillet, smoked fish, fishmeal).
• Organize agritourism (e.g., farm tours, workshops).

Description of the company

Aqua Blue Fish Farm, Estd: 2024 is the brain child of Biplop Bhandari who is the sole
proprietor of the fish farm. With the growing demand for fish instead of meat in Nepali market,
the owner of the company take this chance to seize this business opportunity. As, the farm is
located in Dhading which is a close district near to Kathmandu, Bhaktapur and Lalitpur which
is our core and targeted market.
The vision of the business is to provide high quality fish products as to the consumers while
promoting sustainability, environmental responsibility and establish a reputation for its name.
The mission of the business is to provide premium quality fresh water fish provider, to provide
value added fish products and promote agrotourism ensuring economic growth and
environmental conservation.

Goals/ Objectives
Short term goals
• Establish a fully operational fish farm with efficient production systems.
• To develop a strong local market presence and reputation through direct sales and
partnerships and premium quality products.
Long term goals
• To expand fish production infrastructure and introduce new technologies.
• Enhance agritourism activities to increase farm-based income.
• Establish a processing unit for high value fish products like fillet, smoked fish, fish
meal.
Market Plan
Industry
Nepal is progressing towards self-sufficiency in fish production. The annual consumption of
fish is approximately 84,000 metric tons with production of around 77,000 metric tons. There
is still deficit in production of fish in Nepal leaving room for business opportunity. Also, the
majority of fish produced are mid to low grade fish and there is still not enough supply of
premium quality, high grade fish for luxury hotels and restaurants who are willing to pay
premium price. The fish marketing system and transportation channel is still at infancy stage
and numerous farmer ponds across the country have poor sanitation and inadequate facilities.

Products and Services

• Rainbow Trout and Carps
Rainbow trout are high value fish which generally fetch high prices in the market and
usually in high demand. This is the main product of our interest and also requires high
input and different raceway infrastructure.
Carps are our secondary product to sustain our business and diversify the products.
Carps like Rohu and Sahar will be our main produce.
• Agrotourism, homestay and restaurant
We also plan to build a homestay and a restaurant in farm to promote our product, build
reputation and brand. A way to market our product, build trust with consumers.
• Fillets, Smoked fish, Fish meals
In later phase of our business, we will enter value added fish product market after
establishing processing facility. We will introduce new products like fillets, smoked
fish, fish ball, fish meal in the market after the business is running well and profitable.

Target Market and Consumer

Our main target customers are restaurants, hotels and super markets inside Kathmandu valley.
While our ultimate consumers are higher middle class to high class families who are willing to
spend an extra for a higher quality product. We aim 60% of our business from supermarkets
and other 40% from hotels and restaurants.

Competition Analysis
There is not a huge competition in market of rainbow trout and there is quite a competition for
carps. It will be hard to break in the market for the first time and 1st year would be tough but
our product will be of higher quality and our market is near than competition we will have
location advantage keeping our transportation cost low and since, our market is near there is
less loss during transport of fish contributing to our advantage. Our value-added product will
give differentiation in the market justifying premium price for the brand.
Sales Forecast
Year Products Production (kg) Price per Kg (NPR) Total Revenue (NPR)
Year 1 Trout 2000 1000 2,000,000
Carp 3000 500 1,500,000
Subtotal:3,500,000
Year 2 Trout 2500 1000 2,500,000
Carp 3000 500 1,500,000
Subtotal: 4,000,000
Year 3 Trout 2500 1000 2,500,000
Carp 3000 500 1,500,000
Fillet 500 1500 750,000
Subtotal: 4,750,000
Total 12,250,000

This is the sales forecast for first 3 years of the business, 1st year to establish and stabilize the
business and 2nd make efficient and increase production capacity and 3rd to get into value added
products.

Distribution Channel
We do not want to follow traditional distribution channels, where profit is booked by middle
man. We will supply direct to business like hotels, restaurants and supermarkets which will
lower the cost for consumers and increase the profit margin for us as well. We will buy
refrigerated transportation vehicles to ease transportation and fast delivery.

Production Plan
Site Selection
Farm is located in Dhading, Galchhi 04, near a river named Charaudi. Fresh water is sourced
from the same river. There is sufficient facility of transportation with black topped roads and
availability of electricity along with labour. The farm extends from a hill side to a plane land,
The hill side is suitable for raceway trout and other for pond for carps.

Timeline for Production

The farm is registered in Dec 2024. The construction process starts from Jan 2025 and will take
3 months to complete construction of raceway, Ponds and other infrastructure. The stocking of
fish, finding reliable fingerling supplier may take up to another 2 months. After that, 6 to 8
months for fish to grow until first harvest can be done. After that regular stocking and
harvesting in the interval to 3 to 4 months.
Technology and Equipment
SN Technology and Equipment Units Price per unit Total (NPR)
1 Pond Construction 4 500,000 2,000,000
2 Raceway Construction 1 800,000 800,000
3 Aerators 5 10,000 50,000
4 Water Filter 1 20,000 20,000
5 Water Pump 1 50,000 50,000
6 Refrigerated Vehicle 1 800,000 800,000
7 Processing Unit 1 800,000 800,000
8 Feed 1000 kg 100 10000
9 Breeding and Storage tanks 2 50,000 100,000

Expense Plan
Details on the expenses on fixed assets
SN Equipment/ Unit Price per Total (NPR) Useful life Annual
machines unit Depreciation
1 Pond 4 500,000 2,000,000 20 100,000
Construction
2 Raceway 1 800,000 800,000 10 80,000
Construction
3 Aerators 5 10,000 50,000 10 5,000
4 Water Filter 1 20,000 20,000 5 4,000
5 Water Pump 1 50,000 50,000 10 5,000
6 Refrigerated 1 800,000 800,000 10 80,000
Vehicle
7 Processing Unit 1 800,000 800,000 10 80,000
8 Breeding and 2 50,000 100,000 10 10,000
Storage tanks
9. Land rent 2 acers 50,000 100,000
Total 4,720,000 364,000

Total Investment: NPR 4,720,000

Annual Depreciation: NPR 364,000
Total fixed expense: Annual Depreciation + Land Rent + Interest+ Salaries
= NPR 364,000+100,000+334,000+ 732,000
= NPR 1,532,000
Details on expense of raw materials
Fingerlings, Fish feed and medicine are the major raw materials for the fish, Fingerlings will
be stocked once every 3,4 months and Fish feed will be stocked maintaining 1000 kg on
inventory. Fish feed is one the major expense of the fish farm
Fingerlings: NPR 60,000/year
Fish Feed: NPR 600,000/year
Medicine: NPR 20,000/ year
Details on expense labour requirement.
3 people are enough to work and manage the farm at the starting phase, labour can be
increased as per needed and how well the business is doing in the future.
1 manager (NPR 25,000/ month) and 2 workers at (NPR 18,000/ month) each.
Total Expense: Total fixed expense + Total variable expense
= NPR 1,532,000+ 680,000
= NPR 2,212,000

Financial Plan
Details on Income from business
SN Product Unit (Kgs) Price/Unit (NPR) Total Revenue (NPR)
1 Trout 2000 1000 2,000,000
2 Carp 3000 400 1,200,000
3 Fillet 200 1500 300,000
Total 3,500,000

Gross income: NPR 3,500,000

BC Ratio: Gross Income / Total Expenses = 3,500,000 / 2,212,000
= 1.58

Break even Analysis

For Break-even Revenue
Contribution Margin = Total Revenue – Total Variable Costs
=NPR 3,500,000−NPR 680,000
 =NPR 2,820,000
Contribution Margin Ratio = Contribution Margin / Total Revenue
=NPR 2,820,000/NPR 3,500,000
=0.8057
Break-Even Revenue= Fixed Costs /Contribution Margin Ratio
= NPR 1,532,000/0.8057
=NPR 1,899,375
The farm must generate NPR 1,899,375 in revenue to cover all costs (no profit or loss).
For Break-even quantity
Variable Cost per Unit
Total Production: 5,200 kg (2,000 kg trout + 3,000 kg carp + 200 kg fillet)
Variable Cost per kg = Total Variable Costs / Total Production
=NPR 680,000/5,200 kg
=NPR 130.77/kg
For weighted average contribution margin
Product Selling Variable Contribution Revenue Weighted
price/ kg cost/ kg margin/kg Share contribution
(NPR) (NPR) (NPR) (NPR)
Trout 1000 130.77 869.77 57.14% 496.15
Carp 400 130.77 269.77 34.29% 92.31
Fillet 1500 130.77 1369.23 8.57% 117.31
Total 705.77/kg

Break-Even Quantity=Fixed costs /Weighted Contribution Margin/kg

= NPR 1,532,000/NPR 705.77/kg
=2,170 kg
The farm must sell 2,170 kg of fish (across all products) to break even.

Payback period
For payback period
Annual Cash Flow
Net Profit = Gross Income – Total Expenses
=NPR 3,500,000−NPR 2,212,000
=NPR 1,288,000
Add Back Depreciation (non-cash expense):
Annual Cash Flow= Net Profit + Annual Depreciation
=NPR 1,288,000+NPR 364,000
=NPR 1,652,000
Payback Period= Total Investment/ Annual Cash Flow
=NPR 4,720,000/ NPR 1,652,000
=2.86 years
The initial investment will be recovered in approximately 2 years and 10 months.

Return on Investment
ROI%= (Net Profit/Total investment) *100
= (1,288,000/4,720,000) *100
= 27.29%
The Return on Investment of Aqua Blue Fish Farm is 27.29%

Management Plan
Human Resource Management Plan
The management structure is designed to be simple to support efficient operations of the farm.
The Proprietor who is the owner of the business will provide strategic vision, technical support,
and oversees all key financial and operational decisions. The farm will hire 3 employees
initially, 1 manager and 2 workers. Manager will be responsible for managing, coordinating
and maintaining farm infrastructure and supervising all the activities of farm workers. This
includes proper feeding, maintaining water quality checking on fish health and other farm
activities like harvesting, breeding etc. More farm workers will be hired when the business
expands and goes to other processing operations. Employees will be provided accommodation,
as well as bonus when farm meet its target and insurance will also be provided for them.
Employees will have to go through 1 month training making the skilled and abled about fish
and farm activities.

Input Management
The effective management of inputs is crucial for the success of the farm. The farm will
maintain robust supply of high-quality fingerlings from a trusted supplier every 3 to 4 months
working on a long-term contract for a trust and regular service. The farm will ensure other farm
equipment like aerators, water pumps, nets are well maintained. The most important input is
feed and we will source feed raw material locally to make our own feed and also buy from
local supplier for a well-balanced feed. The feed in maintained at least 1,000 kg in inventory
at all times to count for uncertainty. Medicines will be sourced from Kathmandu based
suppliers and stored in dedicated cabinet to prevent spoilage.

Managerial And Structural Management

The farm’s Structure is simple yet efficient
Biplop Bhandari (Owner) Focus on long term goals, funding, strategic decision, funding,
financial decisions and introducing new technology and ideas.
Farm Manager Reports directly to owner, supervise workers and maintain
equipment, inventory, monitor water quality
Workers Feeding fish, Pond cleaning. checking on fish health,
harvesting fish, packaging and other small farm activities.

Risk analysis and Management

SN Potential Risk Risk Management Strategies

1 Production Risk Disease outbreaks- weekly water quality check, quarantine

protocols and trusted fingerling supplier
Feed shortages- Maintain a backup inventory and partner
with local feed supplier
Extreme weather- Reinforce Pond embankments before
monsoon
2 Market Risk Low Demand- Diversification of product from trout, carp to
fillet, smoked fish
Competition- Partnership with restaurants, hotels and
supermarkets

3 Price Risk Increase feed cost- Produce feed by self by sourcing raw
material
Price Drops- Transition in alternative products like smoked
fish
4 Institutional Risk Permit Issues- Work with local level and authority to gain
permit

5 Other Risks Natural Disaster- Insurance of ponds and equipment against

flood and landslide.
Power Outages- Expand to generator if power outage is
frequent
Conclusion
In conclusion, Aqua Blue Fish Farm presents a promising business plan with the growing
business opportunity in Nepal’s aquaculture industry. With a strategic location in Galchhi
Dhading and a clear vision to produce high quality products and value-added products and lays
a solid foundation for short term and long-term goals.
Overall, the business plan has clear goals, vision and mission and also identifies potential
market, risks and opportunities. Also has a detailed projection and financial flan by
implementing it with a reliable technology efficient management of finance and manpower the
farm is bound to success. The management, production, marketing and risk mitigation outlined
in this plan provides a clear pathway. With a projected return on investment of 27.29%, BCR
of 1.58 and payback period of 2 years and 10 months. Aqua Blue fish farm will make a
significant contribution to aquaculture of Nepal.