Wednesday 25 July 2012

Start a Business of Ornamental Fish Breeding

    


(350). Start a Business of Ornamental Fish Breeding 



Keeping colourful and fancy fishes known as ornamental fishes, aquarium fishes, or live jewels is one of the oldest and most popular hobbies in the world.  The growing interest in aquarium fishes has resulted in steady increase in aquarium fish trade globally. The ornamental fish trade with a turnover of US $ 6 Billion and an annual growth rate of 8 percent offers  lot of scope for development.
The entire industry, including accessories and fish feed is estimated to be worth US $ 14 Billion. The top exporting country (with percentage contribution to global trade) is Singapore (19.8%) followed by Czech Republic (7.8%), Japan (7.4%), Malaysia (7.3%), Indonesia (5.3%), Israel (4.3%), Thailand (3.9%), Sri Lanka (2.9%) and India (0.008%).  The largest importer of ornamental fish is the USA followed by Europe and Japan. The emerging markets are China and South Africa.
India's share in ornamental fish trade is estimated to be less than  1 % of the global trade. The major part of the export trade is based on wild collection. There is very good domestic market too, which is mainly based on domestically bred exotic species. The overall domestic trade in this field cross Rs 1000 lakh  and is  reportedly growing at the rate of 20 per cent annum. The earning potential of this sector has hardly been understood and the same is not being exploited in a technology driven manner. Considering the relatively simple techniques involved, this activity has the potential to create substantial employment opportunities, besides  earning foreign exchange.
 Ornamental Fishes
Aquarium fishes are mainly grouped into two categories, viz., Oviparous (egg - layers) and Viviparous (live-bearers). Further, the fresh water ornamental fish varieties can be broadly grouped into Tropical and Cold water species also. Management of these two categories are different in nature. According to water tolerance fishes are hard water tolerant, soft water tolerant species and those with wider tolerance. The common varieties of fishes and the details of grouping is given below.


Species
Water Quality
 Breeding Season
Breeding Type
Parental Care
Molly
Hard water Sp.
Summer/Monsoon
Live Bearer
Young Ones
Guppy
Hard water Sp.
Summer/Monsoon
Live Bearer
Young Ones
Platy
Hard water Sp.
Summer/Monsoon
Live Bearer
Young Ones
Swordtail
Hard water Sp.
Summer/Monsoon
Live Bearer
Young Ones
Blue Gourami
Wide Tolerance
Summer/Monsoon
Nest Builder
Male Guard eggs
Pearl Gourami
Wide Tolerance
Summer/Monsoon
Nest Builder
Male Guard eggs
Rosy Barb
Wide Tolerance
Summer/Monsoon
Egg Scatterer
Adhesive
Gold Fish
Wide Tolerance
Monsoon/Winter
Egg Scatterer
Adhesive
Z/P/Vl Danio
Wide Tolerance
Summer/Monsoon
Egg Scatterer
Non Adhesive
S Fighter
Wide Tolerance
Summer/Monsoon
Nest Builder
Male Guard eggs
Catfish
Wide Tolerance
Monsoon/Winter
Egg depositor
Enclosures Reqd.
Angel*
Soft Water
Summer/Monsoon
Egg depositor
Airing of eggs with fins
FM Cichlid
Soft Water
Summer/Monsoon
Egg Depositors
Enclosures Reqd.
R D Cichlid
Soft Water
Summer/Monsoon
Egg Depositors
Enclosures Reqd.
Bl W Tetra
Soft Water
Summer/Monsoon
Egg Scatterer
Adhesive
B A Tetra
Soft Water
Summer/Monsoon
Egg Scatterer
Adhesive
Serpa Tetra
Soft Water
Summer/Monsoon
Egg Scatterer
Adhesive
Manila Carp
Soft Water
Monsoon/Winter
Egg Scatterer
Adhesive
Monsoon -  June to August, Summer - March to May, Winter - November  to  January
Marine Ornamental Fishes
Marine ornamental fishes are also  popular  among hobbyists and the technology of breeding and larval rearing has now been developed for certain species by research institutes. The present model has been restricted to freshwater species only.
Technology
At present in India, hundreds of exotic and indigenous ornamental fish varieties are being bred under captive condition. Majority of the production goes to domestic market and to some extent for export. A  generalised production cycle of ornamental fishes is given below. 
There are quite a large number of tropical aquarium fishes known to the aquarists. While many of the fishes are easy to breed, some of these are rare, difficult to breed and expensive. Most of the exotic species can be bred and reared easily since the technology is simple and well developed. It is advisable to start with common, attractive, easily bred and less expensive species before attempting the more challenging ones. An ornamental fish project can be either 1) rearing only 2) breeding only 3) breeding and rearing depending upon the space available/ scale of operations desired  and the expertise. The technology involves the following activities
 Culture/rearing : The culture/rearing of these fishes can be taken up normally in cement tanks. Cement tanks are easy to maintain and durable. One species can be stocked in one tank. However, in case of compatible species two or three species can occupy the same tank. Ground water from dug wells / deep tube wells/ borewells  are the best for rearing fish. The fishes reach  marketable size in around 4 to 6 months. Eight to ten crops can be taken in a year.

Feeding : Young fish are fed mainly with Infusoria, Artemia, Daphnia , Mosquito larvae Tubifex and Blood worms. For rearing, formulated artificial or prepared feed can be used. At present no indigenous prepared feed for aquarium fish is available. The amount and type of food to be given depends on the size of the fry. Feeding is generally done twice in a day or according to the  requirement. For rearing from fry stage dry/ prepared feed can be used.

 Breeding : Ninety five per cent of our ornamental fish export is based on wild collection. Such capture based export is not sustainable and it is a matter of concern for the industry. In order to sustain the growth it is absolutely necessary to shift the focus from capture to culture based development. Moreover, most of the fish species grown for their ornamental importance can be bred in India successfully. Organised trade in ornamental fish depends on assured and adequate supply, which is possible only through mass breeding.
The method of breeding is based on the family characteristics of the fish. The success of breeding depend on the compatibility of pairs, the identification of breeders which is a skill gained through experience. Generally the brooders are selected from the standing crop or purchased and reared separately by feeding them with good live food. However, it is always better to buy good brood stock and replace the breeders. Otherwise, the original characteristic of the species keeps on getting diluted because of continuous inbreeding. Brooders especially egg layers should be discarded after few spawnings.

 Health care 
Water exchange, is a must for maintaining water quality conducive for the fish health. Only healthy fish can withstand the effects of transportation and fetch a good price. Permitted chemicals / antibiotics, vitamins, etc can also be used for preventing / treating diseases.

Market
At present the market is mainly domestic and the demand is increasing steadily. The export market for indigenously bred exotic species is also fast growing and encouraging.

Ornamental Fish breeding project
5.1. Site selection
Site should be located in a flood free area having continuous supply of good quality water. The water source can be dug well or tube well, ponds and rivers having required water quality parameters conducive for breeding of aquarium fishes.
5.2. Water quality parameters
The degree of hardness of water has several biological effects on aquatic life. Hard water containing bicarbonates tend to prevent a solution from changing its acidity. Water lacking this protection may become acidic when carbon dioxide is present, and this change causes stress to the organisms. But in the case of soft water species and sensitive naked cells like egg and milt, excess hardness causes problems in absorbing substances through its delicate membranes. Hence soft water is found to play a vital role in successful reproduction of many species of ornamental fishes and for purpose of fish breeding a soft solution is desirable.
To maintain softness of the water, all sources of calcium carbonate such as calcareous rocks, gravels, corals, broken shell and algae must be kept out of the aquarium system. Some of the important water quality parameters and their optimum ranges for aquarium fish are given below.
Temperature
24 to 28 degrees C
pH
7.0 to 8.5
Carbon di oxide
<10 ppm
Alkalinity
75 to 120 ppm as CaCO3
Hardness
60 to 100 ppm as CaCO3
Dissolved Oxygen
6.0 to 8.0 ppm
Free Ammonia
< 0.05 ppm
Ionized Ammonia
< 0.4 ppm
Accessibility by road, rail and air is a prime requisite for transportation of broodstock / other raw materials as well as to move the produce (live fish) to domestic/ international markets. Apart from these, uninterrupted power supply is essential for water pumping, aeration, lighting/ other machinery.
A thorough survey of the site as well as strong considerations on the engineering aspects are inevitable for the larger volume water holding structures as well as building. 
General outline of an ornamental fish breeding unit consists of components such as (a) maturation/ brood stock development, (b) breeding cum hatching, (c) larval rearing and (d) grow-out subsections. All these sections will have provisions for continuous supply of unpolluted water and air. Apart from these associated subsections such as live feed production section, water-quality testing laboratory cum chemical store, disease treatment cum quarantine section, packaging cum sales section and feed preparation cum storage section are associated to the breeding units.
Species such as guppies, mollies, sword tails, angelfishes etc. can be matured, bred and grown up in glass aquaria and small cement tanks, where as goldfishes, barbs and many of the cichlids require a minimum water volume of 1000 liters and requires larger cement tanks. Earthen ponds of larger capacities are also used for grow out purpose.  Apart from cement tanks, breeding and grow out of catfishes and carp varieties, require earthen ponds having a minimum water volume of 10 to 20 m3. Earthen ponds lined with plastic sheets are commonly used as breeding/ holding tanks for ornamental fishes. But the possibility of tearing and strength loss associated with sunlight exposure are some of the problems associated with lined ponds.
Generally one species is stocked in one tank/ pond but a number of compatible species can be stocked in one tank/ pond. The number of tanks/ ponds/ aquaria required depends on the variety of species bred. 

The basic requirements for successful breeding and rearing of ornamental fish are adequate space, quality water and sufficient feed. Considering this the following investments are required for starting an Ornamental fish project

Tanks : The tanks can be of RCC or brick masonry work having flat bottoms with inlet and outlet pipes. Clay, cement, fibre glass or plastic tanks can also be used. Rearing of fishes should be done in large tanks. Size of the tanks vary according to the space, the number and type of fish cultured.

 Aquariums : Glass tanks of varying size are required for breeding. Small glass bottles of 250 ml are used for keeping individual male fighter fishes. Number and size of the glass tanks depend on the specific breeding / spawning behaviour of the species selected.

 Over head tank : An over head tank of suitable size for storing and to enable sedimentation of water is required.

 Water Supply : Deep tube wells would be the best source of water. Recycling of water through bio-filters or other sort of filtering mechanism can be tried. Other sources like dug wells, municipal water if available can also be used . A small pump to lift the water to over head tank and a network of pipes are needed to feed the culture tanks.

 Work Shed : Work shed should be designed in such a way that the tanks get filtered sunlight. Translucent HDPE sheets can be used. This also protects the culture tanks from falling debris and bird dropping etc.

 Aeration equipments : A blower pump with net work of tubes for aeration is a must. Continuous power supply should also be ensured through generator set or UPS or inverter.

Margin money and bank loan :
The entrepreneur is expected to bring margin money out of his own resources. The rates of margin money stipulated vary from 5 to 25 % depending upon the category of borrower and respective bank norms.

Rate of Refinance :
NABARD provides refinance assistance for ornamental fish rearing to Commercial banks, Cooperative banks and Regional Rural Banks. The rate of refinance is fixed by NABARD from time to time.

Interest rate for ultimate borrowers :
Banks are free to decide the rate of interest within the  RBI guidelines. However, for working out the financial viability and bank ability of the model project we have assumed the rate of interest as 12% per annum.

 Interest rate for refinance from NABARD :
As per the policy circulars of NABARD issued from time to time.

Repayment period :
The borrower will be able to repay the bank loan in 6 years with a grace period of one year on repayment of the principal.

 Security :
As per RBI guidelines.

 Subsidy:
The Marine Products Export Development Authority (MPEDA) provides subsidy at the rate of 50 per cent of capital cost towards construction of cisterns, glass aquarium tanks, aeration system, oxygen cylinder, electrical fittings, and essential accessories etc  ranging from Rs 75,000 to Rs 750000 for  three categories of units based on level of invesrments & grading as per MPEDAs guidelines . The detailed  information is available in mpeda website  www. mpeda.com.

Model Project for ornamental fish breeding unit :
A model of ornamental fish seed hatchery is given below. The parameters are averaged out and the costs are only illustrative. The cost of different parameters change depending on the area, the type of tanks  used and the species bred. According to the place and requirement of the project, some of the items can be excluded or more items as required may be included.
 Project cost for Ornamental fish breeding unit
A. Capital and Recurring cost
Sl No
 Particulars
Nos / units
Unit  rate (Rs)
 Cost (Rs)
A
 Breeding Section



1
Aquarium tanks of @ 250 L capacity each
30
1375
 41250
2
Cement tanks for brood stock @ 1000 L capacity each
5
3500
 17500
3
Shed (Civil work and Shade net (for 100 sq m) with tin roofed area of 15 sqm)
100
1500
 150000
B
 Rearing Unit



1
Cement tanks for brood stock (5000 Lit capacity)
8
10000
 80000
C
 Packaging unit



1
Marketing stock tanks (2000 L capacity)
3
4000
 12000
2
Aquarium tanks (250 L capacity)
30
1375
 41250
3
Oxygen cylinder, accessories


10000
4
 Aeration blower


20000
5
 Hand nets


5000
6
Plumbing components


10000
7
 Electrical components


7000
8
 Generator


25000
9
 Motor


12000
10
 Filtration equipment


67500
11
Tube well


50000
12
 Lab Equipment


7500

Sub Total- Capital cost


556000






 Recurring Expenditure



1
 Brood stock fish


25000
2
 Feed (live feed + formulated feed)


36500
3
 Management


90000
4
 Power & Fuel


15000
5
 Packing &  Transport


10000
6
 Miscellaneous


15000

Sub Total - Recurring cost


 191500

Total Project Cost


 747500
B. Production and Income

Particulars
No of brood stock- Female
No of brood stock- Male
Young ones produced per brooder
Total young ones produced / cycle
50% Survival after 2 months of rearing
1
Live Bearers (guppies, molly, platy, sword tail etc) OR
3640
910
10
 36400
 18200

Egg Layers (Gourami , Barb,
27
54
1350
 36450
 18225
2
Total  Average Production from 1 Cycle
 18200




3
Total Production from 9 cycles per year
 163800




4
Sale price per piece in Rs
2.5




5
Total Income
 409500




C. Financial Analysis

 Particulars/   Year
1
2
3
4
5
6

 Capital cost
 556000






 Recurring cost
 95750
 191500
 191500
 191500
 191500
 191500

 Total cost
 651750
 191500
 191500
 191500
 191500
 191500

 Income
 204750
 409500
 409500
 409500
 409500
 409500

Net Income
 -447000
 218000
 218000
 218000
 218000
 218000

 Discount Rate
15%






 PWC
 1124946






 PWB
 1371702






BCR
1.2:1






 NPW
 246756






 IRR
 >40 %





D. Repayment Schedule
Total Outlay                651750
Margin ( 15 % )           97760
Bank Loan                  553990
                                                                                                                                               
(Amount in Rs)
Year
Bank Loan outstanding
 Net Income
 Repayment
 Net surplus



 Interest @ 12% pa
 Principal
 Total

1
553990
102375
 66480
 -
66480
35895
2
553990
 218000
 66480
110800
 177280
40720
3
 443190
 218000
 53180
110800
 163980
54020
4
 332390
 218000
 39890
110800
 150690
67310
5
 221590
 218000
 26590
110800
 139590
80610
6
 110790
218000
 13295
110790
 124085
93915

5 comments:

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  2. I read your post where you have describe about Ornamental Fish Farming business idea . This is very good idea for those who want to start new business.

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