Sunday, June 27, 2010

Prawn Fry Hatchery, A Strong Business Venture*


In the 70’s, the shrimp industry in Bicol was still at its infancy. Two decades hence, several hatchery establishments emerged in the province of Camarines Norte. Distance was not a constraint for buyers from Metro Manila because they were assured of quality fry that is comparable to those from the Panay area.

Drawing on his extensive knowledge on Penaeus monodon fry hatchery operation gained from experiences in Bataan, Quezon and Zambales, Mr. Jaime M. Borile ventured into the business. His expertise was further enhanced from trainings and experiences gained under the tutelage of the Japanese couple, Iwao and Bing Fujimoto while working for their hatchery firm in India.

In 2002, Mr. Borile joined the band of prawn fry producers with a PhP700,000.00 capitali-zation. He registered his business as JIMBO Prawn Fry Hatchery in April 2003 as a sole proprietorship. His wife, the former Lorna Lee, a graduate of the Bicol University College of Fisheries assists in the operation of the hatchery in San Roque, Mercedes, Camarines Norte.

By word of mouth, JIMBO became a name in the shrimp/prawn industry. Orders from the Manila Bay area alone reached 15 million per cycle. Jimbo’s existing 12 million productions cannot adequately serve buyers from the Bicol Region, Manila Bay area and other walk-in clients.

Salinity and control of temperature within the hatching tanks were the main production constraints. For 45 days, the temperature has to be controlled and continuously maintained at 30oC.

To overcome this technical/production constrains, JIMBO requested for assistance from the Small Enterprise Technology Upgrading Program (SET-UP) of DOST to maximize production. DOST innovation support(ed) with the infusion of equipment controlled and maintained the necessary parameters for optimum fry production.

In 2004, SET-UP granted JIMBO a PhP515,000.00 equipment assistance for the purchase of a portable heating system which will ensure constant temperature within the hatching tanks; a salinometer to monitor salinity of water in each tank; electric motor; and one unit generator set. The equipment ensured a controlled temperature within the hatching tanks resulting to increased production from 9 million to 14 million fry, equivalent to 55.5 percent. Income likewise rose from PhP900,000 to PhP1,140,000 or a 26.66 percent increase after SET-UP intervention. JIMBO was also able to provide additional employment for 22 partime workers in addition to the existing 7 regular workers, 50 indirect-backward (fisherfolks, mother prawn suppliers), and 650 indirect-forward (hatchery and fish pond operators and workers) jobs.

With the increase in production, JIMBO was able to supply not only the Manila Bay area and the Bicol Region but also hatchery and fishpond operators from Bataan, Batangas, Pangasinan, Quezon, and Zambales.

The generator set was a great help in the hatchery operation. JIMBO was able to continue its operation even after typhoon Yoyong in December 2004 when the municipality of Mercedes (Camarines Norte) had no power supply for almost a month. While other hatcheries suffered losses, JIMBO gained a net income of PhP500,000.00.

JIMBO was able to purchase an adjacent lot where a new hatchery dedicated to the production of nauplii another prawn specie was constructed. As of April 2007 total assets of JIMBO include a 2-hectare lot, building worth PhP2.0 million, equipment amounting to PhP1.0 million, and working capital of PhP900,000.00 for fry production and PhP2.0 million for nauplii production.

Production for the local market reached 10.5 million fry and 1 billion nauplii with corresponding gross sales of PhP1.05 million and PhP1.20 million.

Direct employees include 13 regular employees and 2 part-time workers. Backward-indirect employment was provided to 1,200 (900 fisher-folks from Camarines Norte and 300 from Sorsogon and Masbate area). Forward-indirect employment was also provided to 25 prawn-fry producers and 114 nauplii-fry producers.

Local markets for prawn fry are Bulacan, Pampanga, Sorsogon, Tabaco, and Mindoro and local hatcheries as market for nauplii are Bataan, Batangas, Zambales, Pangasinan, and Tagkawayan (Quezon).

SETUP assistance in terms of provision of equipment made a great difference, upgrading its operation, a turning point that enabled JIMBO to control and maintain the salinity and temperature, the critical parameters for optimum fry production. /MP

No comments: