Fish farming is one of the fastest-growing food production sections in the world. Fish farming is the process of raising fish using a controlled environment. A controlled environment helps in increasing the productivity of fish farming. If you’re looking to start a brand new business, you need to learn how to start fish farming business.
The fish farming market cap was valued at USD 256.5 Billion in 2019 and the market cap is expected to grow over USD 350 Billion by 2027. The CAGR is 4.52% which is a good enough reason to learn how to start fish farming and setting up your own business. Building a fish business plan requires a lot of steps and we’ve outlined all the steps in our guide on how to start fish farming business.
Pros and Cons of Starting a Fish Farming Business
It goes without saying, that no business is perfect. Every business comes with its set of pros and cons, and the same is the case with the fish farming business. Before you put your mind and soul into learning how to start a fish farming business, you need to learn the advantages and disadvantages. As opposed to commercial fishing, where fishes are captured from the oceans or fresh waters, fish farming makes use of a controlled environment to raise the fishes. Here’s a list of the pros and cons of the fish farming business:
Pros of Fish Farming Business:
- Stable business all year round as fish has a huge demand.
- Fish farming is better for the environment as fewer fishes are harvested from the ocean.
- Reduces waste which happens due to commercial fishing.
- Eliminates the endangered fish species problem.
- It’s the perfect solution for growing food needs.
- Fish farming creates new employment opportunities.
- Can lead to lower prices of fish for customers.
Cons of Fish Farming Business:
- The use of antibiotics for growth can be harmful to human health.
- Fish farming can have a hand in water pollution as well if fecal matter and other components are released in the sea.
- The fish feed contains a certain percentage of fish, thus fish farming may not protect the ecosystem that well.
- If genetically modified fishes breed with wild fishes, the consequences can be drastic. That’s why fish farmers need to pay extra attention.
- Living conditions in fish farms aren’t usually up to the mark.
- There are a lot of regulations regarding fish farming, each country has its own rules and regulations.
It is crucial to know all the pros and cons of fish farming before you start developing “how to start a fish farming business pdf” for yourself.
What Tools Do You Need To Start Your Fish Farm?
The fish farming industry is growing at a 4.52% annual rate, this is probably the best time to step into the industry. Before you do that, you need to learn how to start fish farming business. To do that, you need to know what tools and equipment are needed? Fish farming is a common business in the USA, rainbow trout and catfish are some of the most commonly grown and sold fishes. To build your business and earn a substantial profit, everything needs to be perfect, here’s a list of equipment that you need to set up your fish farm.
Fish farms grow fishes in tanks or nets or any regulated body of water. Certain factors reduce the water in the water body. To make sure the fishes you’re growing have enough water for healthy growth, pumps are used to fill the regulated environment with fresh water.
- Aeration Equipment
Even if you use a pump for the ideal water supply, you may need to use an aeration tool to make sure the fishes you’re growing have enough oxygen supply. Using aeration equipment, it is possible to have more fishes in a lot less space.
- Seine Reels
You can’t collect fishes without having a seine reel. These seine reels sink to the bottom of the pond or lake or whatever water body you’ve chosen, with a motor, the reel begins to gather the outer edges of the seine collecting all the fishes.
- Handling Tools
In fish farming, it is important to grade the fishes you’re farming by size. You need to have the right handling equipment and grading equipment that can be used to segregate the fishes based on size.
Apart from these types of equipment, you may need some additional tools and equipment based on the needs of your fish farm.
- Fish counters
- Water testing devices
- Fish tanks (if you don’t have access to ponds or lake)
- Nets (if seine reels are too expensive)
What are Fish Farming Setup Costs?
Learning how to start a fish farming business includes having a deeper understanding of the investment you’ll have to make in the initial stages. Obviously, you’ll need to have a working capital of 3-6 months to keep the business running and for you to earn enough profits.
How much you’ll need to invest will depend on the size of the farm you’re planning to open. Fish farming is an expensive venture, so if you’re planning to start the business, you will need to arrange large amounts of funds. If you can’t, you can start small and invest the profits. Here’s a breakdown of the costs.
- Water pumping station or a water pump: $1500 (additional cost per surface of the water)
- Land: Fish farming requires a substantial piece of land, the cost can be $1500-$2,000
- Managerial Expenses: $1000-$1500
- Miscellaneous expenses: $2,000-$3,000
- Working Capital costs: $1,000 -$7,000
This is the breakdown of fish farming setup costs. A rough estimate of fish farming setup costs is $7,000 – $15,000. Obviously, there are more expenses, but if you need to set up the fish farm to start the work right away, this is the bare minimum requirement.
Preparing for Launching Your Fish Farming Business
To learn how to start fish farming, you need to have an understanding of the tools required, basic fish farming setup costs, etc. Now that we’ve outlined these steps, you need to start the preparation for launching your fish farming business. There are a lot of steps that are to be followed before finally launching your business.
If you’re investing your hard-earned money into something, you should have a proper understanding of what you’re getting into. Without proper market research, chances are that you’ll end up losing the investment you made. Now you wouldn’t want that, would you? The best way to make sure you get a return on your investment and you can set up your business successfully, is to conduct market research. Doing market research has so many benefits, you can learn about your competitors, industry tricks, and how to smartly invest your money? Market research is an important part of starting your business.
- Choosing a Business Name & Logo
What is a business without a catchy name and a logo that speaks to the masses? Choosing a business name and logo is an important part of learning how to start fish farming business. The right business name can make or break your business venture.
The first thing that your business name should have is a clear name that indicates what you’re offering. If your fish farm is named “Jack’s dog shop” it won’t do you any good. Your fish farm should have a catchy name and you need to make sure that your business name isn’t similar to any other. A catchy logo helps people remember your business entity.
Choosing an Ideal Niche
If you’re really serious about learning how to start fish farming business, then picking your ideal niche is also important. You need to consider what kind of fish you’ll be farming and selling. Choosing the right niche/right fish is important for achieving your goals. There are a lot of factors involved in picking your ideal niche.
Deciding what kind of fish you want to farm should be depended on how easy they are to maintain, how much the market demand for the fish is, how easy are the fishes to manage, and how easy are the resources to procure. Some of the popular and most common fish farming niches are:
- Tilapia Fish Farming
- Catfish Farming
- Crab Farming
- Carp Fish Farming
- Salmon Fish Farming
Finding the Right Target Market
A lot of things have to be thought out before starting a fish farming business. Proper market research will help you understand which market to target. You must understand the local target market and the demand of the customer. You can choose your target market to be local or international. If you’re planning to export the fishes, you’ll need to reach out to the fish processing units as soon as possible. You’ll need to develop a unique marketing strategy for exporting your produce.
Let’s say your target market is selling food for commercial food products then your target market will be large businesses. To tap this target market, you’ll require a higher quantity of fish which means your farm will be bigger. If you’re raising fish as pets or aquariums, then you’ll be dealing with fish dealers.
Build an Ideal Skillset
You can’t build your business without a proper skillset. Fish farming is complicated and requires a lot of skills. It is vital to have some skills when starting a fish farming business. A lot of state governments run training programs for fish farming. If you’re learning how to start fish farming business, this is the place.
You can acquire other skills required for fish farming, you can acquire these skills by working at a local fish farm. You can learn how to control diseases from spreading, maintain water quality, how to get fish feed and process the fishes. Some basic skills you can learn by working on a fish farm is:
- How to maintain healthy water quality for fishes?
- How to check if the water temperature is perfect for raising fishes?
- Testing the water in which the fishes are farmed, testing both bacterial and chemical conditions of the water.
Procuring the Tools for Fish Farming
The tools that are required for fish farming are the same be it a small-scale farm or a large-scale one. Only the quantity of the tools change. Some of the most common tools required for fish farming are:
- Aeration device
- Fish counters
- Water testing tools
- Seine reels
- Fish graders
- Fish tanks/ponds
Finding the right quality of the tools required is vital for making your business successful. If you’re starting the business, then you need to invest the money ideally in the equipment. The best way to procure the tools is online, using online shopping sites for online business tools suppliers like aliexpress.
Setting The Ideal Price Structure
The price you set for the aquatic animals is important for determining the success of your business. Having the right price structure is one thing that can build or break a business. If your prices are too high in comparison to your competitors, you won’t get the customers you want to. If you set the prices too low you won’t be able to generate a healthy profit. Also, customers always hesitate about the quality of products if the prices are too low.
To find the ideal price point for your business, do thorough market research, follow your competitors and learn from their prices.
Do You Need an Office Space?
Well let’s be honest, the fish farming business is a huge business opportunity. If your target market is commercial foods then you will need office space. Office space is needed for maintaining records, meeting with new clients and so much more. You can build small office space in one corner of your fish farm.
Your fish farming location should be near a freshwater source and easy for you to commute to daily. It makes sense for you to have an office space in your fish farming business itself.
Arranging the Funds Needed
As mentioned above, the fish farming business is a highly expensive business venture. Apart from the initial expense, you need proper working capital for managing your business. If you have the funds required to fulfill the basic setup costs, then you can start your business. To learn how to start fish farming business, you need to learn how to arrange the setup costs and working capital.
There are several ways you can arrange the funds. One of the most common methods is to arrange funds from your friends and family. If that’s not possible, you can reach out to your local bank for a loan for your business.
Do You Need External Help?
Let’s say you have acquired all the right skills for the fish farming business, and have the ideal funds. Do you need to hire people for your business to help you? Hiring extra help will increase your expenses too. Let’s say you don’t have the accounting skills to manage the funds, and you don’t have the funds to hire a full-time team. You can hire a freelance team to reduce costs and manage work that you can’t do.
If you plan to start a commercial fish farm business, then you will definitely need help to manage the farm and breed healthy fishes.
Possible Challenges Faced While Starting Fish Farming Business
The fish farming industry is incredibly huge, and there are countless huge competitors that you may have to face. The initial investment and working capital required are also huge, which may be difficult to arrange for most people. The challenges faced while starting your fish farming business are huge, that doesn’t mean you should stop thinking about it.
As huge as the challenges are, the results are equally huge. The industry is growing at a pace of 4.52% annually which means there’s a lot of opportunity for growth. Follow the fish business plan that we’ve mapped out above, which can be a guide for you to build your business and grow successfully.
Final Take: How to Start Fish Farming Business?
Now that you know everything you need to know about how to start fish farming business, you can start working towards your goal. Of course, the business is full of challenges and some problems but with the right time management and dedication, it is possible to turn the business into a profitable venture. By utilizing your funds wisely and picking the perfect tools, you can turn your business into what you dream.
- How much profit does a fish farm make?
While there is no fixed number, but based on the type of fish you’re planning to farm, and the scale of your farm, the annual profit can be between $30,000 – $150,000.
- How does a fish farm make money?
The answer is simple, the source of income is by selling the aquatic animals you’re raising. Some fish farms offer customers to catch their own fishes as well, for that they charge extra. That can be considered another income source.