Aquaculture is one of the fastest-growing productive activities in the world, driven by the increasing demand for quality fish. However, the success of an aquaculture venture, whether a new project or the expansion of an existing farm, directly depends on careful planning and a robust economic feasibility analysis. Ignoring this crucial step can lead to misguided investments and significant losses.
This detailed guide offers a step-by-step approach to conducting a comprehensive economic feasibility analysis, ensuring your decisions are based on concrete data and realistic projections.
The first step is to understand the market. Before investing, it’s essential to research the demand for the species you intend to cultivate (shrimp, tilapia, etc.), identify key competitors, analyze existing distribution channels, and understand price dynamics. Clearly define your product: will it be sold live, fresh, chilled, or frozen? For which audience: local market, regional, restaurants, or export? This definition will impact the entire cost structure and marketing strategy.
Capital Expenditure (CAPEX) represents all the investment required to start or expand operations. It is crucial to list and budget all items in detail, which may include:
Accurate surveying of these costs prevents surprises and ensures that initial capital is sufficient to put the project into operation.
Operational Expenditure (OPEX) comprises the recurring expenses necessary to keep the farm running. Correctly projecting these costs is vital for the business’s financial health. The main components are:
Using a management software like Despesca is fundamental at this stage, as it allows for accurate recording and categorization of all costs, generating a reliable history for future projections and optimizing financial control of the production cycle.
With costs defined, the next step is to project revenues. This projection must be realistic, based on the farm’s productive capacity, expected survival rates, average harvest weight, and estimated selling price.
Based on cost and revenue projections, the Break-Even Point is calculated, which is the minimum production volume the farm needs to sell to cover all its costs, without generating profit or loss. Knowing this number is essential for setting production and sales targets.
To evaluate whether the investment is worthwhile, key financial indicators are used:
Where CFt is the cash flow in period t, i is the discount rate, n is the number of periods, and I0 is the initial investment.
Economic feasibility analysis is not just a bureaucratic exercise but an indispensable strategic tool for success in aquaculture. It allows producers to make informed decisions, identify risks, seek financing more effectively, and optimize resource allocation.
Management tools like Despesca are powerful allies in this process, centralizing cost, production, and stock data, which facilitates the creation of accurate projections and real-time monitoring of results. Careful planning is the first major step towards building a profitable and sustainable aquaculture business.