No worries. No hard feelings from me. It was indeed good that you could present your points honestly and objectively so that I know what I am getting into.
My partner and I have been working for the past 8 - 9 years and we left our cushy high paying jobs to work for ourselves. We understand that we won't be able to enjoy high salaries for the first few years but we want to know if this is a business we can build long term and eventually make it big.
That example you provided on the company that is doing Tilapia fillets and are now 100% export oriented is what we want to eventually aim for. I do not want to get into this business if it will just basically put food on the table and nothing more. So really, at the end of the day, there is big potential in the business but its just how big you want to grow it and how well you manage it.
Thanks again for your insights. They really provide me with a great overview of the current trends in the industry.
QUOTE(Michael J. @ Mar 29 2012, 05:57 PM)
Elmer:
My apologies if we sounded a little antagonistic, but we really meant well. Aquaculture, like agriculture, is a sensitive business influenced by many external factors. But again, we're all in this together to learn from each other, so hope there isn't any hard feelings.
If they are collecting live fish, then most likely it is for restaurants or for processing. Since they are a feed company, I'm thinking it could be the latter, as the by product from the fish could be used to produce fish feeds.
I agree with your observation on population growth and demand for cheaper sources of proteins. And I also agree that too many players in the market will lead to sharp price reductions. However, I also believe that there will be a stablizing factor which will keep things in balance.
Just so happens I'm currently doing an analysis of the Malaysian aquaculture industry. Actually, the current prices of tilapia is no secret. Fresh frozen whole tilapia from China sells for around US$1.50, or about RM4.60 a kg. Top grade tilapia flesh from Taiwan (sashimi grade) sells for almost 3 times that figure. This is wholesale price. I believe, there are enough niches for producers to tackle. I know of one particular company producing tilapia, and they have vertically integrated a processing plant near their site. They used to do domestic and regional sale, but now are 100% export oriented, producing tilapia fillets. Latest I heard, their venture was so successful that they are expanding into marine shrimp culture also, with a double digit million ringgit investment. FYI, this company has only been doing this for about 5 years.
From the analysis I've been doing so far, most aquaculture companies are no longer focused on raw material production, i.e. just producing fish. Many are actually merging their businesses with other companies focus on different peripheries of the trade, eg. logistics, feedmill, processing and marketing/distribution. This is the emerging trend in aquaculture businesses. Case in point, Gold Coin (feed producer) recently acquired Sy Aqua, which is a marine shrimp R&D and production unit based in Thailand, and together, they will be going into shrimp aquaculture in a big way. There have been some talk about further expansion within ASEAN too.
However, I'm not too sure if 20-30% is a realistic figure... This 20-30% figure has already factored in amortization of capital items?
My apologies if we sounded a little antagonistic, but we really meant well. Aquaculture, like agriculture, is a sensitive business influenced by many external factors. But again, we're all in this together to learn from each other, so hope there isn't any hard feelings.
If they are collecting live fish, then most likely it is for restaurants or for processing. Since they are a feed company, I'm thinking it could be the latter, as the by product from the fish could be used to produce fish feeds.
I agree with your observation on population growth and demand for cheaper sources of proteins. And I also agree that too many players in the market will lead to sharp price reductions. However, I also believe that there will be a stablizing factor which will keep things in balance.
Just so happens I'm currently doing an analysis of the Malaysian aquaculture industry. Actually, the current prices of tilapia is no secret. Fresh frozen whole tilapia from China sells for around US$1.50, or about RM4.60 a kg. Top grade tilapia flesh from Taiwan (sashimi grade) sells for almost 3 times that figure. This is wholesale price. I believe, there are enough niches for producers to tackle. I know of one particular company producing tilapia, and they have vertically integrated a processing plant near their site. They used to do domestic and regional sale, but now are 100% export oriented, producing tilapia fillets. Latest I heard, their venture was so successful that they are expanding into marine shrimp culture also, with a double digit million ringgit investment. FYI, this company has only been doing this for about 5 years.
From the analysis I've been doing so far, most aquaculture companies are no longer focused on raw material production, i.e. just producing fish. Many are actually merging their businesses with other companies focus on different peripheries of the trade, eg. logistics, feedmill, processing and marketing/distribution. This is the emerging trend in aquaculture businesses. Case in point, Gold Coin (feed producer) recently acquired Sy Aqua, which is a marine shrimp R&D and production unit based in Thailand, and together, they will be going into shrimp aquaculture in a big way. There have been some talk about further expansion within ASEAN too.
However, I'm not too sure if 20-30% is a realistic figure... This 20-30% figure has already factored in amortization of capital items?
Mar 30 2012, 03:07 PM

Quote
0.0239sec
0.62
6 queries
GZIP Disabled