Shrimp production

Our Commercialization of Shrimp

Our shrimp farmers are dedicated to efficient and sustained production, caring for the environment and shrimp quality, and optimizing time and resources. To achieve this, it is essential to adapt the shrimp farm well, improve its infrastructure, and testify it. In this way, we obtain good results in the production to be later sold permanently to the packers, with whom we have maintained business relationships for more than ten years. These packers are PROMARISCO, EXPALSA, SONGA, PRO EXPO, NIRSA, etc. These are the companies that export it.

The Swot Analysis

Our Strengths

Our Opportunities

Our Lack

Our Threat

Gvasco Marketing and Commercialization

Our Market Analysis (Market Research)

Ecuador is one of the leading shrimp producers globally; for this reason, Ecuadorian Shrimp is very well received in the international market. This means that all shrimp production is desired worldwide, mainly in countries like the US, the European Community, and Asia.

From the first Ecuadorian productions of Shrimp in captivity, related industries were developed, such as larval laboratories, balanced feed factories, packing plants, and other factories of
According to the National Chamber of Aquaculture, until July 1999, Ecuador had 2,015 shrimp farms located along the coast, 67companies dedicated to export, 308 laboratories, and 26 factories balanced meal.

Our Supply Market

Due to the great reception of the Ecuadorian Shrimp in the world and the production problems in Asia, the shrimp supply market is insufficient to supply the world population.

Ecuador has a tremendous competitive advantage over most producing countries globally; this advantage lies basically in the climate; this gives the possibility of creating Shrimp throughout the year while most countries can only have it in seasonal periods. Six months or a maximum of 8 months a year.

Our Demand Market

The demand for Shrimp worldwide is growing every day due to population growth and the opening of new international markets.

Our Price

Statistics show a growing trend in the price of international Shrimp, which makes it a product of great global demand. We consider a conservative average cost of 2 dollars per pound of Shrimp for this project.

Our Commercialization

Marketing is done through the approximately 70 shrimp packers in the country, and these are the ones in charge of exporting the product to international markets. Therefore, shrimp marketing is very agile, and we have a great offer when choosing who we sell our product.

Our Project Possibilities

The shareholders’ experience of producing Shrimp for years makes it possible to carry out this project considering a conservative scenario.

Our Sanitary Standards

Shrimp production is practically organic, and its entire cold chain is fulfilled, making this a high-quality product and suitable for meeting national and international health standards; for this, there are annual controls by control agencies and international organizations.

Our Production Processes

A management protocol is used in which an adequate treatment is made to the water and the soil, then approximately 130 thousand larvae are planted per hectare.

The Shrimp are fed with a high-quality feed, which can be Purina. The food will be given in feeders, thus achieving efficiency in the nutrition of the shellfish in an amount of approximately 25 per ha.

And so on until reaching 20 or 24 grams. In approximately 130 days, and will be fished and placed in drawers with ice, where the cold chain begins and sent to the packing plants.

Our Equipment Classification

With their respective motors and pulley systems, five 36-inch pumping equipment will be used, which gives us enough capacity to have an optimal water level to produce an average of 4,000 pounds per hectare.

Our Project life

The useful life of our project is ten years. The motors and their pumps are 5 years old. It will fix the infrastructure (walls and reservoir) in 7 years.

Our Supply of Raw Materials:

Raw materials exist in abundance in Ecuador, allowing efficient and uninterrupted production.

Raw Materials

The raw materials mentioned above are produced in Ecuador in abundance. The larvae are made in different laboratories on the Ecuadorian coast. Likewise, the balanced product is delivered in Ecuador and imported from Peru.

Location and Characteristics of Production Areas

The area of ​​COMUNA ZAPOTE, where the shrimp farm is located, enjoys pure seawater without contamination and permanent light throughout the year.

Production Availability periods

The periods are approximately 4 months and can be produced throughout the year.

Our Financial Evaluation of the Project

Financial structuring of the project

The investment plan and its structure can be seen in THE ANNEXES of the project. However, we will detail one of the most important aspects of it:

The Investment Plan, Classification, and Sources of Financing

The acquisition of the shrimp farm is worth 5,500,000.oo, which will be financed with a mortgage loan from a foreign financial institution.

The policy of Collections, Payments, and Stocks

You will make payments to suppliers in an average of 30 days; collections will be made in an average of 7 days due to the nobility of the project.

Production and Sales Schedule

Production is carried out in approximately 120 days, and sales are in cash with a maximum collection period of 7 days.

Costs of raw materials, indirect materials, supplies and services, direct and indirect labor

The working capital is $500,000 for operating capital as stated in the annex:

Project evaluation

The evaluation of the project is based on the experience of the shareholders taking into account their other companies and using actual data from their other shrimp farms in production, considering a conservative scenario since a shrimp farm with this location and with the appropriate technology as proposed by the project it can produce 4,500 pounds per hectare per 4-month cycle, however, production of 4,000 pounds per cycle is considered.

Main Evaluation Criteria

1.- Exceptional location of the shrimp farm
2.- Experience of administrators and shareholders in this business
3.- Trained and efficient work team
4.- Product of high demand in the world
5.- Excellent profitability in the business
6.- Shrimp farm in production
7.- Adequate infrastructure to produce
8.- The indices of the project are positive in both the NPV and the TIR

Our Breakeven

The breakeven point for a business of this type is a production of approximately 1,730 pounds per hectare per cycle for $2.00 per pound.

Our Financial indices

NPV– This project generates an NPV of 3,891,404.38, which means that we will recover our investment, earn a return equivalent to 10%, and earn a little more.

IRR– This project generates an IRR of 208.93% on the investment amount.