Economics

The economics of fish farming are what make it so attractive of course. The APU is no different and in a nutshell you should find that the following is true, over time as you start to develop the skills you will need to achieve the production targets that the system is capable of delivering.

At peak production the APU will produce 91 kg of 480 to 500g fish every 30 days. This is just over a ton a year of fish, just under 2,300 fish annually. Please note that you will not get to peak production until you have some experience under your belt. Don’t be unrealistic in your expectations!!

If you sell these fish for R65/kg, all 1094 kg of it, your nett income is R71,110.00. The other figures will look something like this

Opex Costs
Feed CostR14/kg
Electricity CostR1.80/kWhr
Water CostR5/kl
Fingerling CostR3/fingerling
Labour
Cost of Production
Feed (FCR of 1.4)R21,442.40
ElectricityR6,377.28
WaterR273.75
FingerlingsR7,020.00
TOTALR35,113.43

Your nett gross profit on this should then be around R35 996.57 meaning you can pay off your APU in a single season. But of course this is not the full picture – this is gross profit that your asset can sweat out for you – there are a myriad of other costs that you will need to learn and to control. For instance we have not counted labour costs into this. It’s highly variable and of course it is one thing that is easy to achieve economies of scale with – one worker can run one APU, or 10, or 20, or 30.

You need to learn how to farm productively with yourself and your work force and the secret to success is to develop your own production formula that you can replicate day in and day out with your team, even if that team is just you to begin with.

We’ll step you through the process that we followed once you have your own APU.

Scale?

Let’s give you this to chew on. One APU does one ton a year. So work out what 6,500 tons per year will cost.

Right? R195M, plus all the other stuff you will need such as land, feed mill of your own, processing, packaging – R600M to R800M is more or less your likely destination.

Contextualise what this means. At this level you can produce enough fish to feed every single South African one 500g fish, once, every 3 years. We need an R21B investment in the tilapia industry just to feed every South African one 500g fish once a month.

Yup. ‘strue.

Long road ahead and a massive, truly massive opportunity.