ECONOMICSOF ORNAMENTAL FISH CULTURE

1. ECONOMICS OF
ORNAMENTAL FISH
CULTURE
PRESENTED BY:
J.RUJAN ,
II B.F.Sc,

2. WHY THE ECONOMICS TO BE CALCULATED?
 Enterprising budget will be useful to the entrepreneurs in their
decision-making.
 They include costs and returns of an ornamental fish culture unit.
 The objective function in planning and budgeting in a business is
maximization of profit.

3. OPERATIONAL COST:
 The concept of operational costs will be more appropriate in
the economic analysis of enterprise like ornamental fish culture.
 Operational cost includes,
Fixed cost
Variable cost

4. RETURNS:
 The output price gives total returns.
 Net Returns = Total Returns – Operational Cost
 It is an indicator of profitability of an enterprise.
 For ,both costs and returns should be estimated on
annual basis.

5. COMPONENTS OF OPERATIONAL COST:
• Physical inputs like feed, fishnet and medicine
• Labour input for different aquariculture operation
• Energy input like electricity consumed by the ornamental fish culture
unit
• Depreciation on capital items excluding land
• Repairs and upkeep of farm structures and equipments
• Taxes like water rate and land revenue
• Insurance premium, if the unit is insured

6. I. CAPITAL EXPENDITURE:
TANKS ( CONCRETE/CEMENT WORK )
S.N
O
SHAPE SIZE(L*B*H)
M
THICKNE
SS (cm)
QUQNTITY
(no)
COST /TANK TOTAL (Rs)
1 Rectangular
rearing
spawning
nursing
production
1.10*0.75*0.50
2.20*1.25*0.45
3.25*1.25*0.75
4.80*5.00*1.50
12
12
12
15
50
50
50
10
600
2000
2400
25000
30000
10000
120000
250000
2 Circular
(brood stock
maintenance)
1.4*7.05
2.6*1.00
25
25
20
20
10000
12000
20000
24000
3 All glass tanks
breeding
disease treatment
1.6*30*30
2.12*0.6*0.6
5mm
8mm
150
25
500
3000
75000
75000

7. 4 Earthen pond
storage
grow out
1.45*25
2.2*10
1mm
1mm
5
15
10000
7000
50000
105000
5 Field laboratory
( with overhead water
tank)
10*5*1 1 145000 145000
6 P.V.C pipelines ,
drainage facilities for
all the tanks
100000 100000
TOTAL 10,04,000

8. MACHINERIES:
S.NO ITEMS QTY (no) COST/ITEM (Rs) TOTAL
A Motor pumps with electrical accessories
1 1 H.P 2 5000 10000
2 2 H.P 3 10000 30000
B Air compressors with pipe line
1 1 H.P 2 10000 20000
2 2 H.P 2 20000 40000
C Diesel Genset
1 HW 16.10 kW 1 45000 45000
D Oxygen Cylinder
1 Small 1 4000 4000
2 Medium 1 6000 6000
3 Large 1 10000 10000

9. TOTAL FIXED COST = Rs.13,29,000
E Feed mill
1 HP Pulverizer 1 10000 10000
Jeep with trailer 1 35000 35000
Computer & printer 1 75000 75000
F Water quality analysis equipment
DO meter 1 5000 5000
pH meter 1 5000 5000
Spectrophotometer 1 15000 15000
Nutrient analysis toolkit 1 15000 15000
TOTAL 3,25,000

11. II. VARIABLE COST:
EXPENDABLE MATERIALS REQUIRED:
• Brooders – 22 species (male & female) = Rs.100000
• Fertilizer, feed, live food culture = Rs.25000
• Energy costs – ( electricity , fuel) = Rs.60000
• Medicine ,drugs = Rs.10000
• Accessories (tube,nets,buckets,feeder) = Rs.105000
TOTAL = Rs.300000

12. COST OF PERSONNEL (ANNUAL)
• Farm officer/ Manager – Rs.5000/month = Rs.120000
(2 personnel)
• Field labours - Rs.1000/month = Rs.36000
(3 personnel)
TOTAL = Rs.156000
TOTAL VARIABLE COST = Rs.4,56,000

14. ANNUAL GROSS RETURNS BY SALE OF FISHES:
S.NO NAME OF THE FISH YIELD (no) UNIT SELLING
RATE (Rs)
TOTAL (Rs)
1 Guppy (2 varieties) 100000 1 100000
2 Molly (3 varieties) 100000 1 100000
3 Swordtail (2 varieties) 62500 2 125000
4 Fighter fish 100000 2 100000
5 Gourami (3 varieties) 50000 1 50000
6 Tetra (2 varieties) 75000 1 75000
7 Oscar 20000 5 100000
8 Auratus 1000 10 10000
9 Blue morph 1000 10 10000
10 Angel 150000 2 300000
11 Ramirez 15000 2 30000
12 Redtail shark 2500 20 50000
13 Gold fish (2 varieties) 100000 3 300000
14 Koi carp 175000 2 350000
TOTAL 1700000

15. COST AND RETURNS ESTIMATE:
• FIXED CAPITAL:
 Total fixed capital = Rs.13,29,000
Interest @ 15% on fixed capital = Rs.1,99,000
Depreciation @ 10% on capital items = Rs.1,32,000
Repairs and upkeep @ 10% on capital items = Rs.1,32,000
TOTAL FIXED COST(per annum) = Rs.4,65,000
TOTAL VARIABLE COST = Rs.4,56,000

16. THE NET RETURNS AND RATE OF RETURN:
• Total Returns = Rs.17,00,000
• Total cost = Total fixed cost + Total variable cost
= Rs.9,21,000
• Net Returns (per annum) = Total Returns – Total Cost
= Rs. 7,78,850
• Net Returns (per month) = Rs.64,000
RATE OF RETURNS = 58.6% ( approx.)

17. BENEFIT COST RATIO:
• Benefit Cost Ratio = Total returns / Total cost
= Rs.17,00,000/ Rs.9,21,000
=1.84

18. INFERENCE:
• By decision rule,
 If BCR > 1, then the project can be profitable or
acceptable
 According to our economic details BCR is 1.84 ,which is
greater than 1 so, Ornamental Fish Culture is economically
viable or profitable .

19. THANK YOU