Cultivation Tips

Profit and Capital Analysis of Vannamei Shrimp Farms (2024)

Wildan Gayuh Zulfikar
Wildan Gayuh Zulfikar
12 March 2024
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Every business longs to earn profit. The shrimp cultivation business offers significant profit, but at the same time, the operational costs and risks are also high.

Before starting cultivation, you have to set your shrimp farm budget and expense estimates for primary, secondary, tertiary, and other cultivation needs. The budget should serve as your guide for the minimum amount of money you need to have in hand. Emergency funds and insurance should also be taken into consideration.

How is the profit and capital analysis for vannamei shrimp farms? Read the complete guide in this article!

How is the Vannamei Shrimp Farming Business Potential?

Shrimp farming is a promising business. Considering that Indonesia is the country with the second longest coastline in the world, the potential for shrimp farming business is substantial. In 2023, Indonesia ranked 5th as the largest shrimp producer in the world after Ecuador, China, India, and Vietnam.

Moreover, some advantages of vannamei shrimp farming business are:

  • Easy to cultivate as it can easily adapt to the environment
  • Quick harvesting period, approximately within 3 months
  • High survival rate with proper farming methods

How Much is the Initial Capital for Shrimp Farming?

To start a shrimp farming business, farmers need to first calculate the capital required for shrimp ponds. The required costs can be divided into fixed costs and variable costs. Fixed costs include land, assets, and wages, while variable costs include feed, other supplies, and energy.

To calculate vannamei shrimp farm capital, farmers need a budget plan. The budget plan for vannamei shrimp farms can be classified based on cultivation intensity level, from traditional (extensive), semi intensive, intensive, to super intensive.

Budget Plan for Traditional Shrimp Farms

Traditional or extensive shrimp farms have a low stocking density of <50 PL/m² with a pond area in one plot of around 3-10 ha/plot. Due to its low stocking density, the management methods and costs incurred for running this type of farm are also relatively lower. Here is the estimated budget plan for traditional shrimp farms:

Budget Plan for Traditional Shrimp Farms

Budget Plan for Semi Intensive Shrimp Farms

Semi-intensive shrimp farms have a stocking density of <100 PL/m² with a pond area in one plot of 1-3 ha/plot. The management in this farm is more complex than traditional shrimp farms. Here is the estimated budget plan for semi intensive shrimp farms:

Budget Plan for Semi Intensive Shrimp Farms

Budget Plan for Intensive Shrimp Farms

Intensive farms are farms with a high stocking density of around >100 PL/m² with a pond area in one plot of 0.2-0.5 ha/plot. Managing intensive farms also requires bigger capital due to more requirements. Here is the estimated budget plan for intensive shrimp farms:

Budget Plan for Intensive Shrimp Farms

Budget Plan for Super Intensive Shrimp Farms

Supra-intensive shrimp farms have the highest stocking density, typically >200 PL/m² This type of farm requires the largest capital due to its needs. Here is the estimated budget plan for super intensive shrimp farms:

Budget Plan for Super Intensive Shrimp Farms

How Much is the Potential Profit for Vannamei Shrimp Farms?

Generally, the profit potential of vannamei shrimp farming is quite significant. As an estimate, the profit margin ranges from 35-45% of the expenses incurred. Below is a table illustrating the estimated profit potential of vannamei shrimp farming:

Potential Profit for Vannamei Shrimp Farms

How to Properly Manage Shrimp Farm Finances?

Aside from mastering cultivation techniques and having a supporting network with similar understanding, financial management is also an important aspect when operating a shrimp cultivation business. One of the ways to achieve this is through proper financial records.

Recording finances is an important routine for shrimp cultivation. Having clear records helps you in accounting, monitoring cash flow, evaluating cultivation cycles, and planning for the next ones.

1. Record farm finances regularly

Every transaction, regardless of its type and amount, is important. Income and expenses in shrimp farms should be recorded as a part of business operations. No expense is too small.

To assist you in monitoring the finances of your farm, you can utilize the cultivation cost monitoring feature available on JALA App. This feature is available for free through the mobile version of JALA App.

JALA App update Dec 2023

Simply input the feed prices, actual stocking quantity at the beginning of each cycle, and daily feed data to obtain information on feed costs, estimated production costs, potential income, and estimated cost of goods sold (COGS) for easier financial management.

2. Your records are your control

Use your shrimp farm budget plan as an initial guide and control your expenses along the way to identify which ones are needs versus incidentals. Controls are also implemented by referring to the biggest expense and income, profit/loss conditions, and product categories with the highest cost.

Next, compare it by monitoring recent balance, debts, and receivables to keep your farm finances healthy. With the financial feature on JALA App, you can conduct farm record-keeping in a more detailed and organized way.

3. Monitor financial conditions in detail

Monitor the latest conditions in terms of balance, profit/income, debt/receivable settlement date, and income/expense ratio.

With JALA App’s financial feature, you can also use the transaction filter, which is particularly useful if you have multiple ponds with different expenses. The filter can also be used to distinguish between the source of funds, be it cash, bank account, or giro.

Read more: Record Your Farm Finances in A More Organized Way by Generating Cash and Bank Sub-Accounts in the Finance Feature of JALA App

Regular monitoring and evaluation of cultivation finances can also be conducted through financial reports, which can be accessed during cultivation or after it has ended via the web version or by downloading the reports. Financial reports are categorized as balance sheets, cash flow statements, and profit and loss statements. You can select the month and year to filter financial data based on specific time periods.

Conclusion

Shrimp farming is a business with promising prospects. Before getting involved in shrimp farming, prospective farmers need to calculate the capital required for shrimp ponds through a clear budget plan based on the chosen farming system.

During the farming process, it's essential for farmers to keep detailed financial records. JALA App is #HereToHelp with its cultivation cost monitoring feature in both mobile versions and full financial features for PRO Cycle users.

To remind you, every record and report from JALA App is standardized for accounting purposes! Be sure to upgrade now to PRO Cycle to enjoy this feature!

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