February 15-18, 2009 Washington State Convention Center Seattle ...

A SPREADSHEET MODEL FOR FINANCIAL PLANNING OF TILAPIA AND AFRICAN
CATFISH BUSINESSES
Ganesh Kumar*, Nathanael Hishamunda and Carole Engle
University of Arkansas Pine Bluff
1200 North University Drive
Mail Slot-4912
Pine Bluff, AR 71601 USA
gkumar@uaex.edu
Detailed financial planning for aquaculture businesses can make the difference between profits and losses especially in years
with unfavorable prices and costs. However, many small and medium scale farmers throughout the world lack the knowledge
to develop comprehensive financial statements and may not have access to accountants for assistance. User-friendly decisionmaking
tools that allow small and medium-scale farmers to assess profitability levels in aquaculture ventures may contribute
to successful business development. FAO, in collaboration with the University of Arkansas at Pine Bluff, has developed a userfriendly
decision making spreadsheet model for financial planning for Tilapia and African catfish farms. The model contains
modules for four basic types of culture systems: pond farming, cage culture, tank recirculatory systems and hatchery rearing
systems. The user-friendly model allows the farmer to enter farm details, production parameters, input and investment costs.
Default values are included in the event that the user does not know some values. The model will then develop an enterprise
budget, breakeven analysis, sensitivity analysis, balance sheet and, income statement. It also calculates solvency and liquidity
indicators, and an amortization schedule. An electronic version of the model as well as a guidance manual is available upon
request from FAO.
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