know your business

7/29/2019 Know Your Business

1/201 CTC - Know Your Business

CTC

KNOW YOUR BUSINESS



INTRODUCTION

Commercial Tilapia Cooperative is established under the policy framework and guidance of theGhana National Aquaculture Development Plan (GNADP).GNADP is the policy follow-up of the National Aquaculture Strategic Framework (NASF) - 2006,meant to facilitate the capacity promotion of the aquaculture industry through the following policyframework:

1Promotion of aquaculture investments in high priority zones

2

Providing adequate public sector support in facilitation, monitoring and control to achievetargeted and sustainable growth.

3Increase Ghanas commercially farmed sh output from 10,200 tons (2010) to 100,000 tons (2016)

4Increase Ghanas commercially farmed sh market share from 3% (2010) to 30% (2016)

5

Increase the value of sh farmed by Ghanas commercial farmers from US$ 28,440,000per annum (2010) to US$ 362,000,000 per annum in 2016

CTC members consist of twenty-six (26) Tilapia Fishing Farming entities; Small-Scale TilapiaFarming Associations,Large Scale Enterprises and Entrepreneurs under the common goal ofproducing 42,000 metric tons of tilapia per annum (3x harvest) by 2016 (being 47%) of GNADPstargeted production total of 89,800 metric tons.

Member Production Commitment

Item Member Type MembershipProduction Per Anum

(Metric Tons)

1 Large Commercial Fishing Entities 8 16,000

2 Small-Scale Association 6 12,500

3 Small/ Medium-Scale Enterprises 12 13,500

Total 26 42,000



CTC Production

Large-SacleFarmers

Small/Medium-ScaleFarmers

Produces Fingerlings & CoordinateSeason Production Target

CTC Enterprise CTC Association Limited

CTC

ASSOCIATION

LIMITED

Provides transportationand cold storage of tilapiaCTC Storage

& LogisticsExisting Tilapia farmers

Association

Buy tilapia direct from memberand marketing/salesCTC Buying

& MarketingNew Entrepreneurship

Enterprises



Our goal is to

EMPLOY

127,000

Skilled & Unskilled Laborersby

2016

2013

CTCs combined membership

business turnover is over

GH 78,000,000( $ 37,000,000)

PER ANUM



CAGE CULTURE TILAPIA FISHING

Cage culture sh are raised using existing water bodies but the sh are enclosed ina cage or basket that allows water to pass through freely.Universities in the United States began research on cage culture sh farming in the 1960s.Cage culture shing can be more intensive in many ways than pond culture,and should be considered as a commercial alternative only where open pond culture isnot practical.

Advantages of Cage Culture Fishing:

1All types of water bodies can be used, including lakes, reservoirs, ponds, strip pits, streams, andrivers

2Relatively low initial investment is all that is required in existing water bodies.

3

Simplied harvesting.

4Monitoring and sampling of sh is made easy.

Disadvantages of Cage Culture Fishing:

1Availability and price of feed.

2Fish feed must be nutritionally complete and kept fresh.

3The incidence of disease is a risk and diseases may spread rapidly.

4Vandalism and stealing.



Anchor

System

MooringSystem

Cage Bag

FloatingSystem

CAGE SYSTEM



SITE SELECTION & WATER QUALITY

Ponds are not always best for tilapia cage culture sh unless aeration systems are introduced tocombat low dissolved oxygen.Through the Water Research Institutes and Environmental Protection Agency (EPA),ponds will be analyzed to determine if it can support increasing biological load.Cage culture is better supported in lakes, reservoirs, rivers and stream.

Water quality should be adequate for sh survival and growth rate.Early site evaluation and production monitoring should include dissolved oxygen content,pH, temperature and ammonia levels.



CAGE CONSTRUCTION

Cage components consist of a frame, mesh or netting, feeding ring, lid, oatation barreland platform planks or oor. The cages shape may be square, circular, or rectangular.

Cage size depends on the size of the water body and harvesting method.The frame of the cage can be constructed from wood (redwood or cypress), iron, steel, aluminum,

berglass, or PVC.

Frames of wood, iron, and steel (unless galvanize) should be coated with a water-resistant sub-stance like epoxy, or an asphalt-based or swimming pool paint.



CAGE PLACEMENT i

Systems of tie beams for holding the cage.

Systems of buoys

for the mooring

Moorings of fixed single point allow thecage to drift to the point of least resistance

and exent the least force on the system.

Swivel

Anchor of multiple points of

dead weight (concrete)

Anchor of multiple points of

dead weight (concrete)

Three lower tie beams for maintaining

the shape of the cage in case of high

currents

Currents

A shock absorber to avoid shock

loads and to move the cage softly

with the currents

Currents



CAGE PLACEMENT ii



CAGE PLACEMENT iii



SPECIES SELECTION

The most appropriate species or strains of tilapia for cage culture are Tilapia nilotica (Nile Tilapia),Tilapia aurea (blue Tilapia), Florida red tilapia, Taiwan red tilapia and hybrids between thesespecies and strains. Nile Tilapia has the fastest growing rate and will be the main harvested tilapiaof CTC.

National and International Standards

a Food and Agriculture Organizations Code of Conduct for Responsible Fisheries (CCRF)

b West Africa Regional Fisheries Program

c National Medium Term Development Policy Framework (2010)

d Medium Term Agriculture Sector Improvement Program (METASIP - 2010)

e Fisheries and Aquaculture Policy (2008)

f Fisheries Act, 2002 Act 625

g Fisheries Regulations 2010 L.I. 1968

h Water Resources Commission Act, 1996 Act 522

Locations

* Lake Volta* Ghanas small water bodies (Lake Bosumtwi, Weija Lake etc)* Bui-Dam area* Lower Volta Basin* Akuse Dam area* Akosombo Dam area* Fresh water bodies comprising major rivers and lakes (Pra, Densu, Oti etc)* Lagoons



FISHY FACT SHEET

1Fish account for 60% of the national dietary animal protein

2Fishery sector is currently a source of direct or indirect livelihood for 10% of theGhanaian population.

3National sh output estimated at 420,000 metric tons and domestic consumption requirement is

880,000 metric tons.

4Annual sh import is valued at over USD $200 million

5Ghanas aquaculture output at 10,200 metric tons (Fisheries Commission, 2010)



CTC CO-OPERATIVE BENEFITS

Item Member Non-Member

1 Reliable/ discounted price for feed Unstable price for feed and no volume discount

2Reliable/ discounted supply of n-

gerlingUnstable supply of ngerling sh and no discount

3 Ability to focus solely on grow-out Loss of day-to-day focus

4 Technological assimilationand technical support Not enough technology and technical support

5Reliable market to process and sell

sh at harvestNo reliable market to process and sell sh

6 Premium price at harvest Lower and unstable price at harvest

7Share in higher technical safety(lower risk) of larger umbrella

company (CTC)

No share in higher technical safety of largerumbrella company (CTC)

8Share in prot of the larger umbrella

(CTC)No share of prots from a larger umbrella business

9 Consolidated vertical integration Lack of consolidated integration



PILOT

CTC Implementation of Single Point Pilot (SPP) program @ 3 Locations

The object of the SPP program is to achieve 500 ton within six (6) to nine (9) months from inceptionto harvesting with a target yield of 29.4kg/m3 over a 6 month growth period, thus; equaling 1000tons per two(2) cycle production year.

In collaboration with the Water Research Institute (WRI) of Akosombo under the Council forScientic and Industrial Research (CSIR) pioneering the techniques, technology and bestpracticing from 2006 to 2013; CTCs target of 1,000 metric tons per annum is more thanachievable.

Production Facts & Targets:

1 Stocked density of 120 sh per cubic meter.

2 BEC production location requires water depth between 7 to 10 meter deep

3 Cage Culture Size: 6m X 6m x 2m = 72m3

4 Fingerlings stocked at 120 sh per m3 = 72 X 120 = 8,640 sh per cage

5 Expected tilapia harvest size (all males) is 350 grams per sh after 6 months feeding

6 Total Harvested (minus 30% loses) per cage = 8,640 X .350kg X (70%) = 2.112 metric tonsper cage

7Required number of cages to produce 1000 metric tons per annum (500 metric tons in a 6month cycle) = 500/ 2.00 metric ton per cage (Reduced from 2.112 as Net) = 250 cages



PILOT

Commercial Production Cost Per Cage - COST (GH)

Item Scope Description Amount (GH) GNADP CTC

1 Site Preparation & Preliminary Cost 550 200 350

2 Cages Construction with Nets 72m3 3,600 2880 720

3Fingerlings 8,640 sh @ .30GH

Per ngerling2,592 2,074 518

4Farm Hands

(Laborer 1 per cage per month/6 months)

1,500 1,200 300

5 Feed (4,300 kg @ 0.75GH per kg) 3,200 2,560 640

6Harvest Logistics &

Miscellaneous Expenses400 0 400

CTC pilot production program will require GH 11,842 per cage with GNADP contribution of

GH 8,914 and CTC contribution of GH 2,928. To produce 1,000 metric tons of tilapia intwo (2) cycles per year, CTC will require nancial assistance of GH 2,228,500(equivalent US $1,114,250) from GNADP (Fisheries Commission) to commence production.CTC will guarantee the nancial assistance through issuance of 100% performance bond andcontribute GH 732,000 (equivalent US $366,000) to complement Total First Cycle Production Costof GH 2,960,500.



PILOT Proftability

Pilot Proposed Budget: Cycle #1-COST (GH)

Item Species/ LocationCage Culture

(72m3)Unit

Total (6months)

1 Nile TilapiaAkosombo/ Lower Volta Basin

100 11,842 1,184,200


100 11,842 1,184,200


50 11,842 592,100

2,960,500

~ With an average production of 2 tons per cage per 6 month = 500 metric ton~ Harvesting at GH 7 per kilogram = 500,000kg X 7 GH = GH 3,500,000~ Net Prot (Production/Revenue & Return on Investment) = GH 539,500~ 18% Return on Investment in Cycle 1



PILOT Proftability

Pilot Budget: Cycle # 2 & Subsequent Cycles - COST (GH)

Item Species/ LocationCage Culture

(72m3)Unit

Total (6months)


100 11,842 1,184,200


100 11,842 1,184,200


50 11,842 592,100

2,960,500

~ With an average production of 2 tons per cage per 6 month = 500 metric ton~ Harvesting at GH 7 per kilogram = 500,000kg X 7 GH = GH 3,500,000~ Net Prot (Production/Revenue & Return on Investment) = GH 1,439,500~ 70% Return on Investment in Cycle 2 and subsequent cycles (reduced cost as cage is

fully amortized in rst cycle)



WHAT IS IN IT FOR YOU?

The wholesaler, retailers

Constant supplyGreat quality, healthy sh for valueConvenience as compared to importing

Food vendors and hospitalityContribution to a better Ghana (creation of jobs and opportunities for self empowerment, improv-ing hospitality experience).

Healthier and more delicious sh for gourmet and local dishes.

FarmersImproving income and quality of lifeMoving from feeding one family or community to being part of a cooperative that feeds the na-tion.

The consumer/familyhealthier lives (as a regular staple food promo)fresher sh, hence tastier sh.


20/20

THE PRODUCT

Akosombo Dam; the towering testament of Ghanas position as a beacon of progress onthe African continent. The Dam is home to the largest man-made lake in the World,the energy provider for multiple West African nations, and the source of CTCs Akosombo Specialmain staple, tilapia!

Scores of Tilapia bustle up and down Akosombo, thriving in an ecosystem that breeds the mostsucculent and delicious tilapia in the World. This isnt your ordinary tilapia. Akosombo Specialserves a tilapia that, not only swells your tummy, but provides local sh farmers an opportunity fora better life.

Inherently, Akosombo Special is serving something more symbolic than a Sunday dish for thefamily; its serving Ghana. From the hands that catch the sh, to the plate in which it is served on,Ghanas heart is beating.

After your hand has torn through the tender but eshy meat of Akosombo Special, and dressedit with pepper, kenke, banku etc. you are now ready to taste the culmination of a proud peopleshistory, toil and culture.

God Bless Akosombo Special, the motherlands Tilapia.

know your business

Documents