Feasibility Study On Dry Fish Marketing

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Feasibility Study On Dry Fish Marketing

 

More On Feasibility Study On Dry Fish Marketing

One of the most essential nutrients the body required is protein, and fish is one of the best sources of protein. it is obvious that the majority of people in Nigeria like eating fish (especially dried one) because of the quality amount of protein it contains for this reason, many people usually engaged themselves in dry fish marketing. This study was specially designed for those who may wish to start up dry fish marketing business in Nkanu West Local Government Area of Enugu State, but Agbani to be specific. In the study, it is clear that only what you need to start up this business is N157,000 and you stand a chance of marking up of N53,000 every month. The payback period is 2 months and 3 weeks, so after then, the owner will start enjoying. The net present was 370, this indicate that the project is viable. Only the owner is required in this business, no labourers that are required, so he/she has the full control of the business. This study was carried out in Agbani. Agbani is a headquarter of Nkanu West Local Government Area of Enugu State. It has a well structured marked built by State Government. This makes all the marketing activities in Agbani so easy and simple when compared with other neighbouring town.

Introduction to Feasibility Study On Dry Fish Marketing

        In Nigeria, there are unlimited want in Fish consumption. Fish consumption accounts for about 35% of animal protein consumption in Nigeria. In turn, fish farming is a vibrant and dynamic commercial sector in Nigeria, ripe with investment and employment opportunities. Recent data show that Nigeria produced just over 600,000 metric tons of fish in 2007. Consumer demand, on the other hand, was reported at 2.66 million metric tons, and was met only in part by import of about 746,000 metric tons that same year.

        There are different varieties of fish such as fresh fish, smoke fish and dry fish. This study is basically on dry fish which was proven to have a longer shelf fish compare to other type of fish (fresh or smoked fish). There are different types of fish in the aqua culture, but the feasibility study is focused on dry fish which the level of demand in the market is increasing day by day.

        However, there are about 25,000 species of fish identified all over the world and about 280 species found in Nigeria waters.

PURPOSE OF THE STUDY

        The purpose of this study is to gain knowledge on the processes that are involved in the marketing of dry fish. It is also aimed at determining the profitability analysis of dry fish in Nigerian marketing system. This study will help all those who want to venture into fish business as an occupation, to have a vivid idea on fish marketing; it will also serve as a reference journal to students who want to write any feasibility study on catfish or other different type of fish.

SCOPE OF THE STUDY

        Dry fish marketing is another source of business that put cool money into your pocket. Many women in different part of Nigeria are engaged in fish marketing (which dry fish is one of the key Areas). Marketing of dry fish required less risk when compare with smoke or fresh fish handling, this is the reason many people like engaging in dry fish marketing.

        This study is carried out in Agbani market. Agbani is in Nkanu West Local Government Area of Enugu State, Nigeria. It is the town where Enugu State University of Science and Technology (ESUT), is located. Agbani is the Headquarter of Nkanu West Local Government Area of Enugu State.

Feasibility Study On Dry Fish Marketing

 

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METHODOLOGY

Location: The business is to be located in Agbani Main market because it is the best place for it to be sited so that the product (dry fish) will be available to Agbani household and ESUT students (especially those ones who live in the school hostel and nearby market).

SOURCE OF RAW MATERIAL

        The raw material which is the dry catfish should be gotten from Ogbete Main market and New Market in Enugu town. It can also be gotten from other wholesalers who usually bring their product from different parts of the state to the local market to sell. Selecting any of the above is also very profitable.

MARKET CONCENTRATION

Sampling Techniques; About 20 dry fish sellers in Agbani Market were administered questionnaire, to determine; the quantity of fish they sold per unit price. The challenges involve in the marketing of catfish.

Oral interview was administered to individual who had no formal education.

ESUT students and some other buyers of dry catfish products was also interviewed to know the extent they consumption dry catfish.

Demand Projection

        Though the market is competitive in nature, the information gotten from the respondents are so reliable that am totally convinced that there will be a greater increase in consumption of dry catfish, if there be more suppliers.

MARKET DISTRIBUTION

        The local marketers shall serve as the middle men between the wholesalers and the consumers in the distribution of the product in the locality.

TECHNICAL INFORMATION

        This business is to be carried out in Agbani Main Market. It is a well structured market which will boost the marketing of dry fish. Although the dry fish marketing is competitive in nature, but the numbers of dry fish sellers is not so much that it will put the seller in a great risk. Considering the increase in population in Agbani due to ESUT students, it is obvious that the demand will be increasing on daily bases.

Building

        Agbani market already have a well structured building which was built by the State Government, so the seller don’t need to construct any artificial building, all you need to do is to pay for one shop and occupied it.

Furniture: the only furniture needed in this business area are; a table and a chair (either plastic or wood chair).

Manpower

        Only the owner is needed in this business.

FINANCIAL ANALYSIS

Items

Unit

Amt/Unit

Total Amt

Table

Chair

Basket

1

1

3

8000

1000

300

8000

1000

900

Total

N9,900

Operating Expenses

        This operating cost is on the average of large, medium and small size of the dry fish and that of the basket.

Item

Qty/Week

Qty/Month

Amount/Basket

Total Amt/ Month

Dry fish

Store/shop

2 baskets

8 baskets

18,000

144,000

3000

Total

147,000

Summary

Equipment = N9900

Store/shop = N3000

Dry fish = N144,000

Total Revenue per Month

A basket = 100 pieces of fish

A fish is sold at the rate of N250

A basket of fish = 250 x 100 = N25,000

8 baskets (a month) = 25,000 x 8 = N200,000

Payback Period

Months

Cash flow

1

2

3

4

5

53,000

53,000

53,000

53,000

53,000

Fixed cost = 9900 144700 + 9900 = 156,900

This indicates that it will take 2 months and three weeks to recovers  the money invested in the business.

Net Present Value

Month

TR

VC

Cash flow

Discounting factor   (20%)

Present value

1

2

3

4

5

200,000

200,000

200,000

200,000

200,000

147,000

147,000

147,000

147,000

147,000

53,000

53,000

53,000

53,000

53,000

0.33

0.69

0.57

0.48

0.40

43990

36,570

30,210

25,400

21,200

N157,370

 The initial outlay for the business is N156,900

Approximately N157,000 present value = 157,370 – 157,000 = 370

Payback period = 156,900 = 2.296

53,000

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This indicates that the project is viable and it should be continues.

Cost Estimates

        The total estimated cost for this business is N157,000. This will cover the amount for shops, 18 baskets of dry fish which is to be sold in a month, table, chair etc.

Risk and Uncertainty

        There are some uncertainties that may likely involve in this business. The temperature and relative humidity should be well examined because these may cause deterioration of the fish. So when there is increase in relative humidity, the owner should subject the fish to sunlight or dry it using smoke. This will help to prolong the shelf life of the product.

JUSTIFICATION

        The project proposal should be accepted since enough profit is involves because any marketing process always aim at making profit.

CONCLUSION AND RECOMMENDATION

        From the value of the input and outcome of the output, this project t is economically viable based on the above data. It is therefore recommended for your support and supervision.

        The owner (seller) must always be fare the customer and also create a friendly relationship with them since the business is competitive in nature. These will make the customer to be coming always.

        Lastly, the owner must be single to the customers, because simplicity is the secret of any business.

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