The Importance of Optimal Timing of Investments in Aquaculture
Growing an aquaculture business requires significant investment in infrastructure and equipment and often requires a long lead in time before becoming operational.
Whether on the water or on land, investments need to produce a return as soon as possible. So it makes sense to try to time the availability of this additional capacity to the company as close as possible to when it can be fully utilised.
On the other hand, if you wait too long before initiating the investment in the infrastructure, then your existing capacity could become a limiting constraint and you risk missing out on opportunities for market growth.
Balancing these two drivers to produce an ideal investment timeline is a challenging task, but an essential one for senior management to best build the capacity of the business.
In order to make the best plan for the company, there are two questions in particular to which you need answers. Optimisation software, such as Neptune, can help with both of these questions.
What should you build?
Neptune identifies where the bottlenecks in the value chain currently are and where they are going to be in the future. This means that you can determine the best places to invest to expand the companies capacity.
When should you build it?
If you know the lead in time for a project, you need to find out when present capacity will become the constraining factor in preventing company growth. For each scenario, Neptune will show you not just where, but also when the company will hit 100% capacity. This knowledge allows senior management to plan investment projects so that they will be operational (with an appropriate safety margin) in time to prevent current infrastructure from becoming a growth bottleneck.
Imagine that the company is considering building a new processing plant to expand capacity.
There are many things that you need to do:
- Site selection
- Approvals process
Taking into account the company's particular limitations/concerns Neptune can create multiple scenarios for the new processing infrastructure. Neptune can do it all, showing you the effect of the various scenarios on production and markets thus enabling you to calculate your return on investment and ability to utilise the new capacity for every scenario.
Using Neptune for investment planning means the new processing plant will be operational in the optimum timeframe and allows the potential of the business to be maximised.
Once we accept our limits, we go beyond them.
PanLogica has been empowering aquaculture producers around the globe, including the largest and most innovative, for more than ten years. We invite you to contact us for a more detailed explanation of Neptune and PanLogica and how it can help your business optimise the timing of investments.