Research Data / Financial Analysis (Guatemala) Page 8 - 19
Implementation Plan Page 21 - 24
Works Cited Page 25
Shrimp farming is the production and harvesting of shrimp in ponds and tanks. This Aqua cultural venture got started in the early 1970s, and today over fifty countries export farmed shrimp. The Guatemalan shrimp farming industry has shown substantial increases in production during the last decade. Foreign income generated by the export of seafood during 1993 totaled US$27 million, an increase of more than 300% over 1986. Yearly growth rates of 18% have been steady during this past period. The Texas Incredible Shrimp Company has developed a group of entrepreneurial professionals whose main objective is to build and implement an environmentally safe, profitable, intensive shrimp farming complex in the country of Guatemala.
This project will encompass five components; a hatchery, raceway tanks, feed-mills, processing and freezing plant, and marketing.
The Texas Incredible Shrimp Company will start the project with 50 acres of grow-out ponds. The covered ponds will be stocked initially to produce in excess of 16,000 pounds per acre. Harvest and cash flow should begin 40-45 days after stocking the ponds with post larvae and full harvest of each pond is projected to be completed in 90 to 100 days.
To complete the entire project, a total investment of $US8.5 million dollars will be needed. The project will be complete from production to harvest time in less than 36 months. A forecasted net profit of over $US20 million dollars annually is anticipated when the project is completed.
The Texas Incredible Shrimp Company has researched and found that the United States imports more than 59 % of its seafood to satisfy the domestic market for shellfish. Aquaculture is poised to become a major growth industry of the 21st century. With global seafood demand projected to increase 70 percent by 2025, aquaculture will have to increase production by 700 percent to meet that projection.
In conclusion, a large potential for growth, availability of in-country processing, substantial experience in production along with good marketing and shipping connections make the Guatemalan shrimp industry a viable investment opportunity. The World Bank has pre-approved financing for our investment venture. On behalf of the Texas Incredible Shrimp Company we hereby request approval for an investment of $8,500,000.00 from the Board of Directors for this foreign investment project.
Globalization forces have guided international firms to the globalization of their operations. These forces include: political, technology, market, cost and competitive forces. Preferential trade agreements such as the North American Free Trade Agreement (NAFTA) and the European Union (EU) have grouped several nations into a single trade agreement which presents great marketing opportunities to companies willing to go international. The progressive reduction of barriers to trade and foreign investment by most governments along with the opening of many nations’ economies has opened many opportunities to global competition over the past decade.
Both internet and network computing has enabled small companies to compete globally regardless of the physical location of the buyer and seller. Profound ease of making transactions has resulted from the business to business commerce via the Internet.
Guatemalan law clearly promotes investment and includes provisions that recognize and guarantee private property rights equally for the Guatemalan nationals as well as foreign investors. No restrictions are placed on foreign investors for owning any amount of stock in any Guatemalan company. No restrictions apply to the remittance of profits other than applicable taxes as the Guatemalan government supports an open market acknowledging entrepreneurial activity and foreign investment.
Aquaculture in Guatemala is an important sector of the countries economy over the past several years. Bountiful production of shrimp is located in various farms and the reputation of the quality of shrimp is excellent. Shrimp farming has gained importance in Guatemala due to the alternative financial importance to the economy as well as a significant source of employment. In 1982, Guatemala expanded from just 90 hectares to eighteen farms currently in operation which totals nearly 2,000 hectares of ponds. Additionally, 4,000 hectares could be developed around the many estuaries located throughout the region. To date more than 3,000 jobs can be directly related to shrimp farming activities in Guatemala.
The Texas Incredible Shrimp Company proposes the purchase of fifty acres of land located near Lake Izabal's outlet to the Caribbean near Puerto Ballios the Capital of Development in Guatemala. The components of the project will include:
A hatchery: to produce seed stock (nauplii and post larvae) and brood stock.
Initially, the project will produce Pacific White Shrimp (Penaeus vannamei) and Pacific Blue Shrimp (Penaeus stylirostris) species native to Guatemala. By having our own hatchery, we can minimize the most dangerous threat of the accidental introduction of shrimp viruses by contaminated seed stock. Virus free post larvae can be produced for under $2.50 per thousand and demand a price in excess of $7.00 to $14.00 per thousand.
Raceway Tanks: used for maturation of shrimp for human consumption and bait.
Tanks will be pre-fabricated using pre-engineered grow out tanks. The tanks will be completely plumed, wired and ready to install on Guatemalan tracts of land. The system is engineered to assure incoming salt water is of ocean quality and that minimal amounts of effluents are identified in order to comply with the Guatemalan laws concerning clean water. Structures will be erected to cover the raceways to ensure reduced potential for disease and environmental concerns.
Feed Mill – for shrimp food.
We will formulate our own feeds for the growing of indigenous species of shrimp. Discarded shrimp shells and heads will be recycled from the processing plant along with primary ingredients that have been researched and been found to contain value added nutritional value for the shrimp crop. The feed will be irradiated locally to assure no pathogens are introduced into the shrimp ponds.
The company will contract with a local processing plant, which meets international as well as federal standards.
The majority of shrimp will be specialty packs, both fresh and frozen, for the U.S. and international markets. Bait shrimp will produce a value added profit through wholesale sales to the bait industry in the United States.
Adam Smith’s theory of Absolute Advantage will be utilized in this venture as the Guatemalan economy depends on investments made from abroad and the country certainly has the potential to produce high volumes of shrimp in the marketplace for export. The United States has the same potential for production of shrimp, but with the lower cost of labor and land, the Texas Incredible Shrimp Company will be advantaged by importing the shellfish product line and marketing to not only U.S. businesses but also to European markets. (Pg. 110-111)
The Guatemalan fisheries sector has been active since the 1960’s with the aquaculture operations being initiated in shrimp farms at the beginning of the 1980’s. As this market has grown vitally important to the economy of the country, Guatemala has placed strict sanitary controls on the exportation of seafood products. The country has been placed on List 1 of the E.U. and is the only country of the region to enjoy this privileged position.
Shrimp targeted for export are currently processed at processing plants with an annual production level of over 7 million pounds. These processing plants are able to add value to the project by offering peeling, beheading, deveining, butterflying and partial stem cooking to satisfy customer needs.
Data and Financial Analysis for Guatemala
Guatemala is a country rich in history and beauty. These forces make Guatemala an attractive location for our operations. It is bordered by the Caribbean Sea in the northeast and the North Pacific Ocean to the south and is located between Honduras, Belize, El Salvador and Mexico. It is slightly smaller than the state of Tennessee. The environment of Guatemala is tropical in the lowlands but in the highlands the climate is cool. The country is mostly mountainous with narrow coastal plains and rolling limestone plateau. The lowest point of Guatemala is the Pacific Ocean and the highest point is its volcano named Tajumulco. (www.ciatheworldfactbook)
Although the political history has been very turbulent and the country has had many different governments overseeing the country including guerrilla warfare, it has been able to maintain peace since 1996 at which time the government signed a peace treaty. This has allowed the country to begin to rebuild itself and make it more enticing to companies wanting to expand or relocate. (www.ciatheworldfactbook)
There are some negative issues that would impact a decision to locate in Guatemala. Some of the natural hazards are the volcanoes which also cause infrequent violent earthquakes. Another concern would be that the Caribbean coast is susceptible to tropical storms and hurricanes during the hurricane season. (www.ciatheworldfactbook)
Climate in the region is a relatively faultless environment void of pollution. A visitor to Guatemala can find exotic and varied land features that range from black sand beaches to deserts; from jungle rain forest to mountain highlands. This type climate makes the business venture for Texas Incredible Shrimp Company an attractive location. (www.quetzalnet.com)
The turmoil in the country for such a long period of time and the terrain of the country has caused Guatemala to struggle with the issue of illicit drugs. This country is a major transit for the drugs cocaine and heroin. It is a producer of the drugs opium and cannabis. This has lead to money laundering and corruption. (www.ciatheworldfactbook)
The country is diversified with 23 different languages; a large part of the population being from the Mayan descent. (www.guatemala). Telephone service is usually only available in the larger metropolitan areas. Safe water is also found in these areas, but even so, it is safer to drink bottled water. Electricity is 110 volts and 60 Hz which is readily available in most locations. Businesses and the government offices open at generally the same times as they do in the United States.
An environmental impact study is required before beginning any construction that could disturb the environment. The study must be carried out by qualified technicians and submitted to the National Commission on Environment (CONAMA). (www.quetzalnet.com)
Competitive Forces: While Asia provides the world with 72% of the shrimp supply the balance is primarily supplied by Latin America. Thailand accounts for nearly 30% of the world’s production. Major producers in Latin America include Ecuador, Mexico, Honduras, Brazil, Panama, Belize, Colombia, Guatemala, Venezuela, Nicaragua and Peru. (www.backgrounder)
Because the Texas Incredible Shrimp Company wants to export to other countries, primarily the United States with the intention of expanding to the European market in the future, use of the internet will be a must. A web page designed to show the ponds and the process for processing the shrimp will be part of the features that the company will offer on the website. In researching shrimp farming it was discovered the internet is not only a very viable source for information on this topic but for selling as well. Moreover, it was found that even though websites were found promoting the sales of shrimp it was not used to the capacity that it could be used.
Guatemala is a republic in Central America, with a population estimated at 13,314,079 which is the largest population in the region. The capital and largest city is Guatemala City. In addition to the capital, important cities include Puerto Barrios, San José, Quezaltenango, and Antigua Guatemala. (www.encarta.msn.com )
Guatemala’s culture consists of Native American ways and a strong Spanish colonial heritage. Almost half of the population is Mestizo, which are people of mixed European and indigenous ancestry. Ladino culture is dominant in urban areas and is influenced by European and North American trends. This wide gap between a small, wealthy elite and a large, impoverished lower class is very evident. The inequities worsened in the 20th century, as the population increased and more resources were devoted to producing exports. Almost 40% percent of Guatemalans survive on less than the $US1 per day. It is estimated that 17% of the population is undernourished. The top 10% of the population receive 44% of the income, with the bottom 10 % receiving .9%. This division has been the reason for much of the tension and violence that has been a part of the Guatemalan history. (www.cia.gov/cia/publications/factbook.html)
Poverty affects both urban and rural Guatemalans, but rural residents live under harsher conditions. More than 70% of rural residents are classified as living in extreme poverty, compared to only 36% of urban residents. In 2000, an average of 81% had access to sanitation. About 54% of the population has access to health care, but most of the doctors are around Guatemala City. Malnutrition affects 60% of young children. (www.encarta.msn.com)
Guatemala has a young population with 16% under age 5 and 26% are 5 to 15 years of age. The population growth rate in 2000 was 2.57%. The birth rate of 34 per 1000 population is five times the death rate which is 7 per 1,000. Guatemala’s people suffer from one of the highest infant mortality rates in Central America, 45 deaths per 1,000 live births. Life expectancy at birth is 67 years (64 for males and 70 for females). (www.encarta.msn.com)
The estimated 2002 population density of the country was 122 persons per sq km (317 per sq mi). The majority of the population lives around Guatemala City and in the western highlands, both coasts are more lightly settled. In 1995, 1 of every 500 Guatemalans left the country, most fleeing from the violence of the civil war. However, the emigration rate was much lower than that of neighboring El Salvador, and some refugees who fled across the border to Mexico during the war have been returning to their homes in the 1990s. (www.cia.gov/cia/publications/factbook.html)
Spanish is the official language of Guatemala and the primary language of 60 percent of the population. The rest of the population speaks one of more than 20 Mayan languages. English is widely understood among the upper class and business people. Roman Catholicism has been the major religion of Guatemala since the Spanish conquest during the 16th century. Many Native Americans continue to practice their traditional religions, either separately or combined with Catholic beliefs. (www.quetzalnet.com)
The literacy rate for Guatemalans over the age of 15 stood at 80 percent of the population in 2001; 74 percent of females and 86 percent of males could not read. Elementary education is free and compulsory with 1.8 million children attending school in 1998-1999. The enrollment ratio dropped to 434,912 children for secondary schools. Enrollment figures are lower in rural areas than in urban areas. Many rural schools only go to the third grade, and much of the nation’s education budget is spent in Guatemala City. In addition to public schools, there are also private and church schools, both Catholic and Protestant. (www.encarta.msn.com)
There is a great variety in Guatemalan lifestyles, marked by differences between ladino and Maya ways and between urban and rural areas. In the capital, European culture and fashions have long been dominant. More recently North American styles in cinema, music, politics, business, even fast-food franchises have become a powerful influence that has diminished traditional Spanish customs. In urban areas, the ladino culture is a mixture of indigenous and Spanish traditions. Ladino often blends the clothing and musical styles of the two cultures, and eat dishes from both groups; wheat bread and processed food on one hand, traditional corn tortillas and rice and beans on the other. Outside the capital, especially in rural more traditional ways persist. In indigenous communities most of the women and many men still wear brightly colored native dress. The typical rural family is industrious; men usually work the fields while women care for the children and weave beautiful textiles with motifs that are unique to each community. A diet of corn, beans, and a wide variety of fresh fruits and vegetable is standard. Chicken and rice dishes are also common. Beef or Pork is less common among the poorer classes, but popular among the middle and upper sectors in both the town and the country. Among a variety of native dishes, on festive occasions Guatemalans of all classes serve tamales made from cornmeal with a variety of vegetable and meat fillings wrapped in a banana leaf. (www.encarta.msn.com)
Financial / Economic Forces: The government of Guatemala has taken steps to streamline procedures to encourage foreign investment by creating “one stop investment” to simplify the process of setting up a business in the country. The country is right next door to the world’s largest economic block and trade is eased by the approval of the North American Free Trade Agreement. The Government of Guatemala, anticipating passage of the agreement, initiated a series of reforms aimed at eliminating protectionism barriers. As a result an n agreement was signed establishing the Central American Economic Block. This agreement aligns the region’s macroencomic policies, reduces tariffs, promotes exports and helps to attract foreign investment initiated the Central American Economic Block (www.latintrade.com)
Guatemala is the largest economy in Central America, accounting for one-third of regional GDP. The economy is predominately agricultural, with more than half of the country’s labor force engaged in farming, forestry, and fishing
Since 1993, the International Finance Corporation (IFC) has approved US$192 million of investments in Guatemala and is supporting the modernization and expansion of internationally competitive companies, small and medium size companies; infrastructure; and capital markets. The IFC is currently considering further projects in manufacturing, agribusiness, and other sectors and we feel that our shrimp farming project will foster economic growth by supplying employment thereby reducing poverty and improving the quality of the people’s lives. (www.worldbank.org)
Guatemalan law promotes foreign investments; our company is registered as a local company in the country. As members of OPIC (Overseas Private Investment Corporation) any losses resulting from inconvertibility of currency or expropriation from our shrimp farms are covered.
Guatemala’s official currency is the quetzal. The currency exchange rate is quetzals (Q) per US$1 equal 7.6300 (December 2002). For the most part, Guatemalan businesses will usually insist on being paid in quetzals. The easiest currency to change into Guatemalan quetzals is the US dollar. The banking system in Guatemala is modern and computerized and therefore able to make most kinds of international financial transfers quickly. It is possible to use Visa and Master Card to get cash when needed. All foreign currency transactions must be made through approved financial institutions. Guatemala is a developing country largely dependent upon traditional commercial crops as the basis of its market economy. The government has attempted to revitalize the economy since the 1980’s by encouraging the diversification and expansion of nontraditional exports. Free Trade Zones have been established to encourage the expansion and decentralization of manufacturing.
The agricultural sector accounts for about one-fourth of GDP, two-thirds of exports, and half of the labor force. Coffee, sugar, and bananas are the main products. The 1996 signing of the peace accords removed a major obstacle to foreign investment. Ongoing challenges include increasing government revenues, negotiating further assistance from international donors, and increasing the efficiency and openness of both government and private financial operations. A low international price for Guatemala’s main commodities continues; yet, the economy grew by 3% in 2000 and was forecast to grow by 4% in 2001. (www.mapzone.com)
The GDP per capita in US dollars equaled 1,512 in April of 2002 according to the Latin Business Chronicle. The inflation rate has decreased from 8.7% in 2001 to 3.9% in 2003. The current balance of accounts is -4.1% in 2003 as compared to -5.5% in the year 2000. The corporate tax rate is 25% while the region’s black market rate is of course zero or very nominal at best. Guatemala has the largest economy in Central America and the tenth-largest in Latin America; however, in per capita terms, it falls to 13th place in Latin America. (www.wto.org)
The World Bank supports a growth and decline in poverty strategy in Central America which includes enhancing private sector productivity to take advantage of the opportunities that international trade offers. The World Bank’s strategy includes a total of $41.3 million in pre-approved World Bank loans to enhance competitiveness of firms in Nicaragua, El Salvador and Guatemala. These loans are currently being tailored to focus more directly on the immediate challenges posed by Central America Free Trade Agreement (CAFTA). (www.wto.org)
Exports are valued at US$ 2.9 billion in 2001 and include: coffee, sugar, bananas, fruits, vegetables, cardamom, meat, apparel, petroleum, electricity. Imports are valued at US$ 4.4 billion in 2001 to include: fuels, machinery, and transport equipment, construction materials, grain, fertilizer, and electricity. The United States is the country's largest trading partner, providing 35% of Guatemala's imports and receiving 27% of its exports. Exporters of nontraditional agricultural products welcome co-investment foreign partners with additional financing sources, state-of-the–art technologies, along with new export markets. Guatemalan exports of non-traditional agricultural products rose from US$25 million to US$108 million in 1992 and were forecasted to reach the billions mark by the turn of the next decade. Foreign investments were vital to reach these goals. (www.geographyiq.com)
Tariffs are Guatemala’s main mechanism for border protection with an average MFN rate of 7.0%. Guatemala maintains import tariff quotas for a number of agricultural products. Tariff reductions have contributed to access toward the Guatemalan markets for partnerships. (www.wto.org)
Figure 1.0 shows data retrieved from the World Development Report 2000 / 2001 for the macroeconomic status of Guatemala.
Legal Forces: Foreign investment in Guatemala is generally welcome. The country imposes relatively few restrictions on foreign investment. A foreign enterprise intending to do business in Guatemala; however, must register with the Mercantile Registry and the Internal Revenue Service. There are no limits on foreign participation in domestic enterprises. For this reason, they may own 100% of a business. In addition, foreign investors are guaranteed national treatment by law. No restrictions are placed on foreigners on owning any amount of stock in any Guatemalan company. All sectors of the Guatemalan economy are open to both local and foreign investment and ownership; however, some restrictions apply to sectors considered to be of strategic interest, such as telecommunications and some forms of transportation. Other than applicable taxes, no restrictions apply to remittance of profits and repatriation of capital. Guatemalan law supports an open market respecting entrepreneurial activity and foreign investment.
Foreign investment in Guatemala is usually carried out by establishing a local company or a branch of a foreign company. Legally establishing a business in Guatemala is a simple and quick procedure, taking approximately two weeks for provisional registration and a maximum of four months for final registration. A company may begin operations under provisional registration. Registration requirements for a business include the following:
A minimum of two persons, individual or corporate, are required to form a company. The charter of the company must be executed in a public and notarized document.
A certified copy of the charter must be filed with the Commercial Registry within fifteen days. The company’s accountant or accounting firm must be registered with the Ministry of Finance. After verifying compliance with legal requirements, the Commercial Registry provisionally registers the company. The company then must publish notification of the registration three times during the thirty days following the granting of a provisional registration. The notices must appear in the Official Gazette and one other newspaper of general circulation. If no opposition is tendered, the Commercial Registry proceeds with final registration.
If a foreigner has been hired or contracted by a Guatemalan corporation or company to work in Guatemala, he/she must fulfill the following requirements:
Present a copy of the contract
Present the official appointment of the foreigner by the corporation or company.
Present notarized appointment of position to be occupied in the
Present the commercial patent and the balance of accounts of the
No limitation exists on the number or percentage of foreigners serving on a board of directors of a Guatemalan company. Companies are required to have legal representative, who must be a resident alien with a work permit or a Guatemalan citizen. Shares may be made out to the stockholder’s name or issued to the bearer. In addition, companies must register with Guatemala’s Internal Revenue Service to obtain the tax identification number. The following documents are required:
Copy of the publications in the Official Gazette with proof of the
provisional registration issued by the Commercial Registry and copies of the documents filed with the Registry.
Form DRISR-90, obtained at the Ministry of Finance, supplying
general information on the company.
Moreover, all documents must be certified by an authorized official in the country of origin and authenticated by the consul, ambassador, or minister of Guatemala. All documents must be translated into Spanish by an authorized translator, and the sum of U.S. $10.00 or its equivalent in quetzals be paid for each document to the Secretariat for Consular affairs of the Ministry of Foreign Affairs. (www.quetzalnet.com)
The Income Tax Law establishes a 25% tax rate on income obtained in Guatemala for capital investments, services rendered, or both. This tax rate applies to all companies and legal entities. Interestingly, dividends or similar benefits paid by a corporation are exempt from taxation, provided the company has paid its income tax. The Value-Added Tax (VAT) was also recently simplified and remains one of the lowest in Latin America at 10%. The VAT is imposed on imports or sales of goods in the domestic market.
Companies domiciled in Guatemala must pay quarterly a 1.5 percent tax on one quarter of the amount resulting after subtracting fiscal credits owed, total liabilities and restrained utilities from total assets. Furthermore, all foreign currency transactions must be made through approved financial institutions. A form must be filled out for all transactions involving foreign investments, remittance of dividends and repatriation of capital. (www.infoguate.com)
Procedures for exporting Guatemalan products were greatly simplified by the establishment of the One-Step Export Bureau at the Ministry of Economics. The bureau brings together in a single office all organizations and institutions associated with the export activities. Export permits are routinely issued in a matter of hours. For instance, a free trade zone is an area of land especially designated, subject to a special customs classification, in which individuals and enterprises manufacture or merchandise goods for export or re-export, or engage in foreign trade services. (www.quetzalnet.com)
A significant obstacle for foreign investment can be found in the Labor Code’s restrictions on the employment of foreigners. The Labor Code requires that at least 90% of the total employees be Guatemalan, and these must collectively earn at least 85% of the total salaries paid by the employer. Two high-level administrative positions, such as managers or directors, are exempt from these percentages.
Companies domiciled in Guatemala must pay quarterly a 1.5% tax on one quarter of the amount resulting after subtracting fiscal credits owed, total liabilities, and retained utilities from total assets. (www.quetzalnet.com)
Earnings from shrimp farming in1996 were more than $3 billion. Our company will be both an environmental and socially sustained venture that will create jobs and will stimulate Guatemala’s economy.
We will use several different modes of marketing. First and foremost, we will launch a web based shrimp auction with competitive prices. Our customers will be assured of fresh, high-quality shrimp because we will sell our products directly to cold-storage facilities across the United States and Europe. Our customers will have the advantage of a 24 hour open service, and we will be able to conduct transactions at any time via the internet.
Secondly, we will subscribe to and promote our product in numerous magazines including cooking, sports, and health and fitness focusing on advertising our delicacy. Banner Ads are also effective marketing tools as well as cable TV in which we will promote our product.
Shrimp ponds should be built in ecologically responsible areas. An environmental impact assessment (EIA) has been completed. The terrain of the site will allow an embankment to be built to prevent erosion; each pond will have a separate intake and outlet to maintain control of the water supply. An engineer that has specialized in the design of shrimp farms has inspected the site and designed a more than adequate system for the ponds; the design has taken into consideration all aspects from the threat of flooding to how pump intakes will be screened to sediment traps to vegetation buffers. The Code of Practice for Responsible Shrimp Farming will be the driving force of the company. (www.globalaquaculturealliance.com)
The location of Texas Incredible Shrimp Company will be built and maintained on a 50 acre shrimp farm west of Lake Izabal just off the Caribbean Coast. The local government has been solicited for their support of this venture and they have responded favorably. Research has shown that surrounding South American countries have been successful with ventures of this nature. Our goal and commitment to the local government is to disturb as little of the environment as possible while bringing in a source to bolster the local economy. (www.globalaquaculturealliance.com)
Shrimp farms are expensive to build and depending upon site and farm design, construction costs will range from about $10,000 per hectare in Central America. The investment for producing a crop also is large. In intensive shrimp farming, the cost of post larvae for stocking 1 hectare will be between $2,500 and $5,000, and feed costs will run about $25,000 per hectare in intensive ponds
Earnings from shrimp farming can be better than those obtained in traditional agriculture. The farm gate revenue for well-managed, intensive farms with sustainable production of 4 to 5 tons per hectare per crop is around $50,000 to $75,000 per year with an export value of about 1.5 times greater. The total value of farm-reared shrimp in 1995 was more than 3 billion dollars. Shrimp farming creates jobs and demands for services to stimulate local economies. Intensive shrimp farms usually employ 1 to 2 full-time workers per hectare.
Intensive shrimp farming is usually done in small ponds of 0.5 to 1.0 hectare in area. Shrimp are stocked at densities of 20 to 50 post larvae per square meter. Our ponds will be limed and fertilized before stocking to encourage a plankton bloom. Pelleted, manufactured feed with 35 to 40% crude protein will be applied up to five times per day. Feeding rates will be increased according to feeding charts as shrimp biomass increases. In the past, water exchange rates usually were 10% of pond volume per day or greater in intensive shrimp ponds.
The Texas Incredible Shrimp Company will provide only the highest quality product. In stocking the ponds only healthy post larvae will be used. The ponds will be devised in such a way as to guarantee an adequate supply of natural food. The larvae will be acclimated before stocking the ponds to avoid stress and water quality will be of the utmost importance. Strong chemicals will not be used and the shrimp will be monitored for good health thus assuring a quality product. In the unfortunate event of diseased shrimp; measures will be taken to prevent cross contamination. Any drug or chemical treatments that may be necessary will be done in accordance with national and international regulations. All employees will be trained in the proper way to handle the shrimp and any crisis situations that may occur.
Mechanical aerators will be utilized in ponds and operated throughout the grow-out period. Aeration usually is supplied at 4 to 12 horsepower per hectare with the amount increasing as the biomass of shrimp increases. Shrimp production is projected to reach 4,000 to 8,000 kilograms per hectare in the intensive ponds.
Shrimp will be harvested by draining ponds. A large net is placed in the outlet structure and the shrimp will be captured from the out flowing water. Shrimp remaining in ponds will be harvested by nets or picked up by hand. The shrimp will be immediately separated into size classes and placed on ice for transport to a processing plant.
At the processing plant, shrimp will be washed and sorted for further processing or packaging as heads-on shrimp. Shrimp will be offered to the market in various forms to include heads-on shrimp, shell-on tails, peeled tails, or breaded tails and other value-added products. Most of the shrimp will be put into paper cartons, frozen, and loaded into containers for transport to markets by ship.
A partnership contract has been agreed upon with a Puerto Ballios processing plant which will assist the Texas Incredible Shrimp Company with the processing and icing needs for proper storage and exporting of the shrimp products. The contract will provide for one half of the operational productivity cost of processing. Wages, benefits, freight cost, insurance, and export cost are included in the operational cost. The processing plant will be responsible for hiring, supervision and training of the personnel. Guatemalan labor laws will be adhered to.
After harvest, pond bottoms will be allowed to sun bake for 2 to 4 weeks in the dry season to recondition bottom soils. Agricultural limestone will be applied to pond bottoms to neutralize acidity, and the bottoms of the dry ponds will be tilled with disk harrows or other plows to enhance contact with the air. Oxygen in air serves to promote microbial degradation of organic matter and to oxidize the soil. After pond bottom treatments have been completed, ponds will be refilled with water and another crop started. Two to three crops are projected to be produced per year with annual gross revenue of $20,000.000 US dollars. (www.globalaquaculturealliance.com)
Works Cited Ball, Donald, Wendell McColloch Jr., Paul Frantz, J. Geringer, and Michael Minor.
International Business: The Challenge or Global Competition. 8th Ed. New
York: McGraw-Hill Irwin, 2002.
MapZones.com Economy: 17, March, 2003.
Geography IQ – World Atlas – North America – Guatemala – Economy: 17 March, 2003
Fundesa’s Business Guidebook: 22 March, 2003. Guatemala – Consular Information Sheet: 14 March, 2003.
Forgeing Direct Investment in Guatemala: 17 March, 2003.
Global Alliance for Shrimp Farming. 19 March, 2003.
Guatemala Facts: 21 March, 2003. < http://www.cia.gov/cia/publications/factbook.htm>
Trade in Guatemala: 17 March, 2003. Guatemala: 17 March, 2003.