Linkage between finance and operations
Probably one of the most overlooked areas of agri-business, we develop systems that interact between the accounts and the production areas. This enables clear reporting structures and allows owners and operators to make informed decisions based on past and current realities. We feel that good decisions can only be made off good data streams, which are a core component of any successful aqua/agri business.
Process and System
The inherent complexity of aquaculture projects and the usual necessity of vertical integration requires the development of farm specific systems and protocols. This encompasses all aspects of the business beyond production and includes human resources and routes to market. In our experience, this is often an area that is overlooked by entrepreneurs and the later demand for continuous production output through expansion phases often leads to capacity deficiencies. This is a critical area for turnaround development and is an essential tool to enable project developers to identify critical success and/or underperforming areas.
Early Profitability
We believe that businesses should strive to deliver profits at the minimum scale as early as possible. This means the entire business cycle is to be synchronised at the earliest allowable stage and aims to expose problem areas as early as possible.
Market Realities
Many aquaculture businesses are built on forward entrepreneurial market expectation rather than informed or reliable opportunity. Given the long timelines and expense we prefer to ‘get our feet wet’ at the earliest opportunity to better inform the company rate of development.
Expansion Timing
We believe that expansion should only be considered when the operations have shown clear ability to perform across all levels of the business and there is tangible and demonstrable profitability. This requires thorough analysis of all process from CAPEX through to realistic market feedback.
Honest Discussion
As with any emerging industry, aquaculture generates much hubris and attracts many opportunists and chancers. As a result many projects fail to due insufficient realistic diligence relating to sites, technology or operator capacity. We believe an honest and forthright discussion prior to project funding is required and detailed analysis of all systems and expectations is performed. The existence of water doesn’t always justify a realistic aquaculture opportunity.