Feasibility Study On Shrimp Farm, With Risk Analysis

Abstract Book of the 11th International Conference on Research in Management and Economics

Year: 2026

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Feasibility Study On Shrimp Farm, With Risk Analysis

Adil Ali Naseeb

ABSTRACT:

This abstract presents a feasibility assessment for a small-scale Shrimp aquaculture venture. The study asserts that the investment is completely financed by Industrial Bank of Kuwait, with an interest rate 3.5%. Moreover, it is assumed that market conditions are ideal, and all full production capacity is anticipated to be employed by the local market. The Shrimp farm encompasses 50,000 square meters of land and possesses an annual production capacity over 100 tons. The target weight of Shrimp is approximately 15 grams. A market analysis was conducted to determine the selling prices of farmed Shrimp in Kuwait’s market, established at 2.7 KD per kilogram. The results revealed an annual operational expenditure of roughly 191,000 KD and an annual income of 270,000 KD, resulting in a net profit of approximately 40,000 KD over the first five years. The initial capital required to establish and start and operate the Shrimp farm is roughly 382,000 KD. The Feasibility Study reveals an Internal Rate of Return of nearly 13%, a Net Present Value of approximately 522,000 KD, and a Payback Period of around 8.12 years, all suggesting a feasible project. In addition, a risk analysis was conducted by a sensitivity analysis on the price range of selling shrimp. The analysis showed that within the suggested price ranges of 3.0 KD till 2.4 KD the project remains viable.

Keywords: Feasibility Study; Internal Rate of Return; Net Present Value; Payback Period; Sensitivity Analysis