Project Profile

I. Title: Sustainable Lobster Pen Culture Production

Poly-Culture with High Value Species in support to Tourism Industry

II. Relevant Major Final Output (MFO)

This project is a pilot in culturing Lobster in Pen Cages:

1. Sustainable Lobster Production support services

2. Market Development services
3. Extension Support, Education and Training Services
4. Information Support Services (IEC)
5. Policy formulation, planning and advocacy services

III. Sector Coverage: Sustainable Aquaculture focus on Lobster Pen Culture

IV. Location: Palawan designated Mariculture Park including identify municipalities

a. Puerto Princesa Bay Mariculture Park and Honda Bay,

b. Quezon Mariculture Park: Balabac & Narra
c. San Vicente Mariculture Park: Roxas, & Taytay ( tumbod & pancol)

V. Project Objectives:

1. To develop and upgrade the capabilities of fisherfolk, out of school youth, LGU
Technicians and BFAR Staff, and other stakeholders on High Value Species (Lobster
Pen Culture) production system in order to promote and diversity sustainable
aquaculture production in Puerto Princesa City and Palawan areas;
2. To lobby the closure of wild lobster good sizes gathering for one year and gather
lobsters below 200 grams for seedling;
3. To establish and operate Lobster Culture in Pen Cages (10 units of pen cages for
Lobster to be poly culture with Snappers, Seabass and Siganids) as practicum-
livelihood project of fisherfolk, contribute to generate food security, seed money,
and create job employment opportunities among fisherfolk and out of school youth;
4. To demonstrate and promote the applicability, viability, and profitability of high value
species (Lobster) in grow-out/production in Pen Cages in the areas;

VI. Project Description:

The grow-out cages for high value species (Lobster Culture in the Pen Cages) are
made of Bamboo materials and PE net measuring 10mx10m divided into 4 compartments.

1. Construction of Grow-out Pen Cages (new, see attached bill of materials):

a. Lobster 10 units (10mx10m: 4compartments)

b. Poly Culture with:

i. Seabass
ii. Snapper
iii. Talakitok
iv. Siganid
2. Stocking of Fingerlings for Grow-out in the Pen Cages:

a. Lobster - 15,000 pcs. - 1,500 pcs./module for initial 4 modules (Target for
1st cropping: October, 2013 to May,2014).
b. Seabass - 5,000 pcs. - for 1 module (Target for 1st cropping: November
to April 2014).
c. Snapper/ - 5,000 pcs. - for 1 module (Target for 1st cropping: October,
Talakitok 2013 to April, 2014).
d. Siganids - 10,000 pcs. - Target stocking for 1st cropping: October 2013
d. Holding Cages - to be stocked with the collected siganids/fry from
the wild for fingerlings formation.
Total - 35,000 pcs.

3. Culture Period

a. Lobster - 6-8 months (400g-600g)

(Stocking density rate: 15 pcs/sqm.)

b. Seabass - 6 months (400-600g)

c. Snapper/Talakitok - 5-6 months (400g)

d. Siganids - Poly- Culture (4-5 months 320-350g)

4. Production and Income target:

a. Lobster (65% survival) - 829kg/module or a total of 8,290 kg (10 cages) @

P1,000.00/kg. = P829,000.00 (gross sales ), total for 10 cages P8,290,000.00;

b. Seabass (80% survival) - 2,000kg/cage module @ P200.00/kg. =P400,000.00

(gross sales );

c. Snapper/Talakitok (85% survival) - 1,700kg/cage module @ P200.00/kg.

=P340,000.00 (gross sales );

d. Siganids (80% survival) - 2,800 kg/cage module (10,000pcs at 350gms/pc., or

a total of 5,600kg (2 cages) @ P100.00/kg=P280,000.00/cage, total 2 cages
P560,000.00;

Total Production Target : 17,590 kg. (first cropping)

Total Gross Income : P9,590,000.00

5. Market
a. Lobster - live marketing for export (Kingdom Prize Seafoods)
b. Seabass - local and export market (fisherfolk marketing program)
c. Snapper/Talakitok - local and export market (fisherfolk marketing program)
d. Siganids - Local and export (fisherfolk marketing program)
VII. Methodology of Project Implementation

1. Consultation with fisherfolk, out of school youth, investors, private sector, LGU, BFAR
and other stakeholders

2. Hands-on training with practicum-livelihood project for fisherfolk, out of school

youth:
a. Pen Cage design and construction
b. collection of fingerlings (big size grouper, and siganids)
c. stocking of fingerlings
d. feeding
e. monitoring and sampling of stocks
f. net cage maintenance
g. harvest
h. direct marketing

3. Field trip to other viable projects;

Duration/timetable of the Project:

The project will be carried out from September 2013 to June 2014

Activities Timetable of Activities/Schedule of Implementation

Sept Oct Nov Dec Jan Feb Mar Apr May June Remarks
Submission of revised project
proposal
Approval and release of funding
requirements
Purchase of supplies and
materials
Hands-on training of fisherfolk
and LGU/BFAR technicians and
staff
Construction and installation of
grow-out pen cages
Stocking of fingerlings and
launching
Feeding and Fish Sampling

Technical, Marketing and

Management Support
Harvest and Marketing

Project Monitoring and Evaluation

VIII. Funding Requirements

The funding requirements for Lobster Culture in pen cages production poly-culture with high
value species project will be provided BFAR, Private Sector, and Fisherfolk with out of school
through counter-parting scheme:

BFAR Counterpart

1. Training, Technical Support and Monitoring:

a. Food and Catering (30 pax) for 5 days @ P350/day/pax . . . . . . . . . . . . . . . . . . . . . . . P 52,500.00
b. Training Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000.00
 c. Administrative Cost: (Consultation, coordination, and monitoring @ 10,000/month 120,000.00
Sub-total P 192,500.00
2. Cage Structure/Grow-out Production/Holding Cage:
a. Lobster Culture in Pen Cage (10 cage modules @ P818,950.00/unit) . . . . . . . . . . . . . P 818,950.00
b. Seabass Culture in Pen Cage . . . . . . . . . . . . . . .
c. Pompano Culture in Pen Cage . . . . . . . . . . . . . .
d. Siganids Culture in Pen Cage . . . . . . . . . . . . .
Sub-total P 818,950.00

3. Fingerlings Requirements for Grow-out Production of HVS:

a. Lobster Juveniles (15,000 pcs. @ P50.00/pc. delivered on-site) . . . . . . . . . . . . . . . . . P 750,000.00
b. Seabass Juveniles (5,000 pcs. @ P10.00/pc. delivered on-site) . . . . . . . . . . . . . . . . . . 50,000.00
c. Snapper Juveniles (5,000 pcs. @ P10.00/pc delivered on-site) . . . . . . . . . . . . . . . . . 50,000.00
d. Siganids Juveniles (20,000 pcs. @ P4.00/pc. delivered on-site) . . . . . . . . . . . . . . . . . . 80,000.00
Sub-total P 930,000.00

4. Feed Requirements for Grow-out Production of High Value Species:

a. Lobster (Trashfish and Kuhol with Clamp shell) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P 721,875.00
b. Seabass (kuhol and Trashfish) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000.00
c. Pompano/snapper . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000.00
d. Siganids . . . . . . . . . . . . . . . . . . . . . . . . 70,000.00
Sub-total P 931,875.00

5. Sea Cage Monitoring Equipment

a. One (1) Unit Motorized Fiberglass Banca with 16HP Diesel Engine. . . . . . . . . . . . . . . P 100,000.00
c. One (1) Unit Air Compressor (Scuba Tank Air Charger) . . . . . . . . . . . . . . . . . . . . . . . . . 75,000.00
Sub-total P 175,000.00
TOTAL P 3,048,325.00

Private Sector (Kingdom Prize Seafood Inc.)

1. Sourcing and On-Site Delivery of High Value Species:

a. Lobster (15,000 pcs.)
b. Seabass (5,000 pcs.)
c. Snapper/Talakitok (5,000 pcs.)
d. Siganids (S. gutattus and S. canaliculatus; 20,000 pcs.)
e. Additional Holding Cages/Tanks for Live Loster
f. Export Market of Live High Value Species to Singapore
g. Project Monitoring (joint BFAR-RFO4B, RFTC 4B and LGU of every Municipalities)
h. Caretakers Expenses
i. Repair and Maintenance of Fish Cages
j. Security of the Marine Fish Cages
h. Regular Underwater Survey and Monitoring

IX. Monitoring and Evaluation

The Center will conduct regular monitoring and evaluation of the HVS
project/activities being implemented in the area. Monthly reports will be submitted to
the BFAR Regional and Central Office, LGU Palawan for information, record and
evaluation purposes.

The reports include production output of the marine fish cage operation, water
quality monitoring, feeding management, fish sampling, training completion report
number of IEC develop such as video, leaflets, tarpaulin, buyers directory, monitoring of
 fish distribution and price at the public market profitability analysis per cropping, and
other relevant reports.

Evaluation will consider the following expected output and outcome.

1. Capability building program of the LOBSTER & HVS utilizing the Mariculture Parks;
2. Production and contribution to food security estimated at 17,590kg (first/test cropping)
and income target of at least P9,590,000.00;
3. Enhanced job employment opportunities (500 local fisherfolk and out of school youth);
4. Provided cost-effective and efficient support services (training, technical, marketing and
management);
5. Document the initial operation of the LOBSTER and HVS grow-out in pen cage operation;
6. Replication of the technology to increase production of HVS for local and export market;
7. Marketing support (linkages, distribution, pricing scheme, promotion, etc.);
8. Harvest and Post harvest handling techniques of live lobster from Wild and Hatchery;

Prepared/Submitted by:

ISMAEL JERRY FERMO

Training Center Director
DA/BFAR-RFTC Puerto Princesa City, Palawan

Recommending Approval:

CESO IV
Assistant Director for Technical Services

APPROVED:

ATTY. ASIS PEREZ.

BFAR Director
BILL OF MATERIALS

LOBSTER CULTURE IN THE BAMBOO PEN CAGE

Cage Dimension: 10 Module @ 10m x 10m: 4 COMPARTMENTS
Puerto Princesa Bay together with Palawan group of Mariculture Parks

I. MATERIALS QUANTITY. UNIT UNIT PRICE AMOUNT

a. Cage Structure
120.
- Bamboo Poles (full length).. 1100 poles 00 132,000.00
5,700.
- PE Net (400/12 x 14k x 200MD x 100ML).. 50 bundle 00 285,000.00
295.
- Mononylon (150 lbs. test) .. 110 kgs. 00 32,450.00
400.
- PE Rope (#6, 12mm) .... 20 rolls 00 8,000.00
500.
- PE Rope (#8, 16mm) .... 20 rolls 00 10,000.00
2,250.
- PE Rope (#12,24mm) .... 20 rolls 00 45,000.00
75.
- CC Net 18 k (for cover) .. 800 mts. 00 60,000.00

Sub-total 572,450.00
b. Labor Cost
10,000.
- Labor and Material Cost for Guardhouse 10 unit 00 100,000.00
1,000.
- Construction of Net Cage 40 units 00 40,000.00
5,000.
- Construction of 1 Module Cage Frame 10 unit 00 50,000.00

- Miscellaneous and Contingencies (10%) 76,245.00

Sub-total 266,245.00

TOTAL 838,695.00
II. Production and Operating Costs
50.
- Lobster Juveniles (4-6' TL)... 15,000 pcs. 00 750,000.00
10.
- Feeding Kohul shell and Trashfish.... 100,000 kgs. 00 1,000,000.00

- Marketing Expenses (5% of Gross Sales)... 414,500.00

- Miscellaneous and Contingencies (3%)... 64,935.00

TOTAL 2,229,435.00

GRAND TOTAL 3,068,130.00

III. SUMMARY OF COST AND RETURN (ONE CROPPING)

Production Area = 10m x 10m: 4compart Cage Feed Type = Commercial Feeds & Trashfish

Species # of Stock % Survival Harvest Size Producton (kg)

Lobster 15,000 pcs. 65% 800gms./pc. 8,290

A. Cage Structure and Labor Cost . 838,695.00

B. Depreciation Cost .. 152,090.00

C. Production and Operating Costs (per crop). 2,229,435.00

D. Calculation of Cost Benefits (percrop)

Production Market Price

1,000.
Gross Sales = 8,290 kgs. 00 8,290,000.00

Less: Costs (B+C) = 2,381,525.00

Income Before Tax = 5,908,475.00

Less:6% Sales Tax = 354,508.50

Net Income After Tax
= 5,553,966.50

Rate of Return (%) = 5,553,966.50 x 100 233.2105059

2,381,525.00

Return on Investment (%) = 5,553,966.50 x 100 181.0212247

3,068,130.00

Payback Period (years) = 838,695.00 0.151008293

5,553,966.50

IV. Annual Depreciation Schedule for LOBSTER CULTURE IN BAMBOO PEN Cages Production in 10m x 10m : 4 compartments

PURCHASE ECONOMIC ANNUAL

ITEM COST LIFE DEPRECIATION
(Pesos) (Years) (Pesos)
1. Bamboo Cage Frame/Net Cage
- Bamboos 132,000.00 3 44,000.00
- Nettings and other materials.. 345,000.00 5 69,000.00
- Ropes 95,450.00 5 19,090.00

- Guard House 100,000.00 5 20,000.00

Total = 152,090.00