How to Open a Shrimp Farm — Ultimate guide
HOW TO START A SHRIMP FARM
Understanding how shrimp farming is organized and who are the final clients that you want to sell to will alleviate the process of its foundation. It is true that shrimps are more in demand than they used to be 10 years ago, not just because there are more people who choose to have a healthy lifestyle and consume shrimps for their antioxidants and anti-inflammatory effects.
First, study the market and make sure you understand what it takes to open a shrimp farm from the initial point to its expansion without any black spots or uncertainties.
Many entrepreneurs believe that they do not need to know the exact figures of running their business at the very beginning, they believe they will learn it as it comes. But the truth is that the better you are prepared the higher are your chances to succeed, so not knowing how much does it cost to run a shrimp farm can be a fatal mistake.
Fish and Seafood is a very fastidious business because it highly depends on the demand levels and new technologies. In fact, seafood consumption has been slightly affected by the recent economic crisis, which made prices for fish and seafood grow uncontrollably in some places. So it is highly advisable that you should know how much does it cost to open and run a shrimp farm in your area before you set off to implement your business plan.
World statistics prove that shrimp farms have been functioning accordingly even during the crisis and even experimented a slight growth over the last decade, meaning that opening a shrimp farm might be a good choice if there are not any in your area.
RESEARCH BEFORE YOU OPEN A SHRIMP FARM
One of the attractive sides of opening a shrimp farm business is that governments are willing to support and provide financial help to these types of entrepreneurship at any time. Nevertheless, before you decide to get all “hands-on” on this task, do exhaustive research about the feasibility of a shrimp farm in your area.
To conduct this research you might need specialized assistance from marketing research agencies-Although they might be costly they might pay off in the end, because it will help you to see what exactly you need to open a shrimp farm without squandering your money on unnecessary equipment or additional premises area, etc.
Start analyzing the demographics and psychographics of the population that you are targeting with your product, which is fresh seafood or any derivative products from shrimps. This type of research will provide you with information about your ideal consumer and their availability in the area, which also will give you an approximate idea about how much a fish farm can make a month selling locally without exporting.
Another important factor for you to pay attention to as you are inquiring into the possible distribution channels is the density of restaurants and food businesses in the area. It is vital that you think about your dealership and distribution network in advance because transportation costs can make you lose money on a daily basis.
Another option to conquer the market is to specialize, for example, you can explore to see if you might encounter less competition in the shrimps packaging and processing business rather than direct distribution to local markets, restaurants, and grocery shops. Having a clear distribution strategy from the very beginning will help you define how much you need to open a shrimp farm with precise exactitude.
FIND A LOCATION
You might think that there is no competition in shrimp farming as it seems to be a rare entrepreneurial start-up idea, but in reality, the problem with this type of business is that it has very specific requirements to set up, which makes it highly dependent on the location.
First of all decide on the location, because it will directly affect how much a shrimp farm can make a year independently of its size and specialization. There are some areas that allow you to save on transportation and labor, make an exhaustive analysis of how much you will spend on the premises, its renovations, and preparation for the shrimp farm installation.
Second, an important part of your business plan is the equipment and tools you need to run a shrimp farm. Take into account that you will need to install or construct an artificial pond or water tank on the premises if you do not have a natural water reservoir, which will involve how much you need to start a shrimp farm.
Many artificial lakes and ponds need specific maintenance, which is costly and not always available in certain areas, so think carefully before getting into any expenses on that matter. Sometimes looking for a new place is a better solution than trying to start from scratch in a place that is not adapted to the shrimp farm business.
HOW TO RUN A SHRIMP FARM
After you find the right location for your shrimp farm, the next step is to provide it with the right equipment that will surely take you a lot of financial and mental resources. That’s why shrimp farms are relatively expensive to settle up. But it is not the only problem or challenge for shrimp farmers.
Even when it comes to knowing how much a shrimp farm makes a year you cannot be certain, because all your revenue will depend on many factors such as how to run your farm, what equipment to use, the quality of products you use, staff training, etc.
One of the most important factors that affect the quality of your product and directly your revenue is the type of water and chemicals you used to keep it clean in order to provide the best environment for the shrimps to grow. Depending on if you are using fresh or seawater, or even lukewarm, or if your farm has inside or outside installations.
This has to be planned out before even starting your own farm because you will need qualified staff and specialized equipment to make sure that your farm is running properly. Some farms have several systems, which require even more specialization and help in order to lessen the cost of running the shrimp farm by producing at a more profitable rate.
Water is the most precious asset for a shrimp farm, so pay special attention to its quality. You might need to hire specialists who have already worked in similar facilities to recommend to you the best way to work with the water resources you have available at the moment. Remember the better is the quality of water, the better is the shrimps’ survival rate and growth, which is directly related to how much you can make a moth at a shrimp farm.
Another crucial topic for you is to get the right feeding material and ensure an appropriate feeding process. It is known that you need to feed them at least twice a day, meaning you have to calculate what are the expenses of maintaining your shrimp farm in the long term if you want to make profits.
GET YOU FINANCES UNDER CONTROL
Growing shrimps might be a daunting process itself, making sure you get the right shrimps, you achieve the temperature in the ponds to be right, and the feeding process regular. You still have a very important task to accomplish if you want to see your business grow.
As it is usual shrimp farmers do not get involved in their accountancy, but they should. Especially that there are many software programs that can help them decide what they are doing wrong and what amendments they should make in order to sell more and at a better price.
Managing or at least understanding where your main source of income lays, how your resources are allocated can represent an enormous advantage when planning a new investment or thinking about quitting or installing new facilities. Wise planning based on real figures can give any shrimp owner a clear perspective of their business, not only data about how much a shrimp farm can make a day or a year.