Investment Memorandum · 2026
DM-XTech Fisheries OPC · Pampanga, Philippines

Tiger Prawn Penaeus monodon Nursery & Grow-Out

A staged, capital-efficient repurposing of an existing land-based hatchery facility into a premium tiger prawn production platform.

₱12MTarget Capital
28–34%5-Year IRR
₱22.6MYear 3 Revenue
16Circular Tanks
45 MTPeak Annual Yield
SCROLL
Section 01

Executive Summary

A compelling, capital-efficient opportunity to convert dormant aquaculture infrastructure into a premium tiger prawn production facility.

₱15–20M
Embedded Value
Existing concrete tanks & buildings eliminate civil capex
53–61%
Gross Margin Y3
Strong operating leverage at full capacity
2.5–3.5
Year Payback
Full capital recovery on conservative scenario
₱450–550
PHP / kg Live
Tiger prawn commands 2–3× Vannamei pricing

Three-Phase Business Model

1
🐣
Phase 1 · Months 1–4
PL Sourcing & Nursery
Commission indoor tank block for PL-15 to PL-30 nursery. Establish daily operations and generate early cash flow through external PL sales.
CapEx: ₱517K–758K
2
🌱
Phase 2 · Months 5–10
Scale-Up & Pilot Grow-Out
Activate 4–6 circular tanks for juvenile grow-out. Commission biofilter. First market-size harvest in Month 11–12 while continuing PL sales.
CapEx: ₱805K–1.23M
3
🦐
Phase 3 · Month 11+
Full Grow-Out Production
All 16 circular tanks operational in rotational harvest cycle. Monthly 30–40g market-size prawn harvests. Export accreditation for Japan, Korea, EU.
CapEx: ₱1.34M–1.99M

Investment Highlights

Total Capital Requirement₱8.5 – 12.0M
Embedded Infrastructure Value₱15 – 20M
Phase 1 Break-EvenMonth 6–8
Year 3 Annual Revenue₱12.2 – 22.6M
5-Year IRR28 – 34%
NPV @ 12% Discount Rate₱7.5 – 11.2M
Payback Period2.5 – 3.5 Years

Strategic Advantages

  • Embedded asset value: ₱15–20M in existing tanks eliminates the majority of civil capex for any comparable greenfield project.
  • Pampanga location: Direct access to NCR restaurant demand and Subic/Clark export logistics corridors.
  • Water flexibility: Freshwater + synthetic salt — superior pathogen control vs. raw seawater intake.
  • Staged risk model: PL sales generate revenue before full grow-out capital is committed.
  • Species premium: Tiger prawn commands 2–3× Vannamei price at equivalent harvest weights.
  • BFAR advantage: Land-based operations classified as lower-impact; simplified permitting vs. coastal farms.
Section 02

Market Analysis

Tiger prawn commands the highest wholesale price in the Philippine shrimp market, with a persistent supply gap across domestic and export channels.

Pricing by Market Segment

Market SegmentPrice (₱/kg or unit)Demand LevelSupply Gap
Live Tiger Prawn — wet market / restaurant450 – 550Very HighSignificant — premium farmed supply scarce
Chilled Whole — HRI / food service380 – 450HighModerate — some import competition
Frozen IQF Export320 – 400Very HighLarge — domestic farmed supply insufficient
Nursery PL Sales — PL-30, Phase 1₱0.45 – 0.70/PLGrowingUnder-served in land-based PLs
Tiger Prawn vs. Vannamei — Wholesale Price (₱/kg)
Export Market Price Premium vs. Domestic (%)

Export Market Opportunities

MarketFormPremiumCert. Required
🇯🇵 JapanLive / Chilled sashimi-grade+30–50%BFAR + HACCP
🇰🇷 South KoreaLive / Frozen headless+20–35%BFAR + HACCP
🇪🇺 European UnionFrozen cooked / raw tail+15–25%EU Reg. 854/2004
🇺🇸 United StatesIQF frozen tail-on+10–20%FDA HACCP + SIMP
🇭🇰 HK / ChinaLive / Chilled whole+25–45%BFAR Export cert.

Competitive Landscape

  • Wild-catch operators: Declining volumes; no supply consistency.
  • Traditional pond farms: Exposed to WSSV and weather; high mortality risk.
  • Vannamei farms: Lower price point (₱150–200/kg); commodity dynamics.
  • Land-based RAS tiger prawn: Emerging but very high capex; very few at scale in the Philippines — limited direct competition.
  • Imported frozen: Lower quality perception; import duties and supply disruptions.
Competitive Moat: Species premium + biosecure land-based production + embedded infrastructure value creates a position that is extremely difficult and expensive to replicate.
Section 03

Facility Repurposing Plan

Existing concrete tank infrastructure — valued at ₱15–20M — converted with targeted, phase-locked upgrades.

🔵

16 Circular Concrete Tanks

Dimensions: 228″ dia. × 40″ depth (~5.8 m × 1.0 m)
Volume: ~26–28 m³ each · Total: ~420–450 m³
Condition: Dormant; debris accumulation; PVC piping present
Suitability: Excellent — circular geometry ideal for RAS grow-out

🏗️

Indoor Rectangular Tank Block

Tanks: 8–10 units, ~3.6–4.8 m³ each · Total: ~30–48 m³
Structure: Covered ~150–200 m² with tarp/shade netting
Condition: Dormant; blue PVC water lines installed
Suitability: Good — ideal for PL nursery, quarantine, conditioning

Facility Tank Allocation — Phase-by-Phase
CIRCULAR TANK FIELD — 16 UNITS GROUP A — Enrichment / Grow-Out Ph2+ T1 T2 T3 T4 GROUP B — Juvenile → Full Grow-Out Ph2+ T5 T6 T7 T8 GROUP C — Full Grow-Out Ph3+ T9 T10 T11 T12 GROUP D — Reserve / Quarantine / Broodstock T13 T14 T15 T16 INDOOR RECTANGULAR BLOCK T-A T-B T-C T-D T-E T-F T-G QUAR- ANTINE Phase 1: PL-15 → PL-30 Nursery Phase 2+: Artemia enrichment / conditioning Phase 3: Broodstock / specialist nursery Enrichment/Grow-Out Full Grow-Out Reserve/QC

Water Quality Target Parameters

Salinity
20–30 ppt
Synthetic sea salt blend; acclimation protocol for incoming PLs
Temperature
27–30 °C
Shade netting + partial roofing; heater backup in dry season
pH
7.5 – 8.5
Daily monitoring; bicarbonate or lime buffering
Dissolved O₂
>4.5 mg/L
Fine-bubble aeration + O₂ supplementation at high density
TAN (NH₃)
<2.0 mg/L
Biofilter + partial water exchange; feeding rate control
Water Exchange
10–30%/day
Reduces as RAS biofilter matures in Phase 2+

Four-Tier Biosecurity Framework

T1

Site Perimeter

Perimeter fencing with controlled single entry; CCTV surveillance; visitor logbook; exclusion of wild animals and birds from tank areas.

T2

Dirty / Clean Separation

Dedicated water treatment room; UV sterilisation of ALL incoming water; no raw water contact with stock; separate inlet and outlet systems.

T3

Zone Isolation

Chlorinated footbaths (200 ppm) at every zone entry; colour-coded dedicated equipment per zone; no cross-contamination of tools or siphons between zones.

T4

Pathogen Surveillance

PCR testing of ALL incoming PL batches for WSSV, IHHNV, AHPND, TSV; monthly water monitoring; immediate isolation SOP for any suspect tank.

Section 04

Tiger Prawn Lifecycle & Operations

From PL-15 sourcing through to 30–40g market-size harvest — end-to-end production overview.

Tiger Prawn Production Flow — PL to Market Harvest
PL Sourcing PL-15 · ~0.015g BFAR-accredited hatchery + PCR Quarantine Days 1–7 Salinity acclimation WSSV clearance Early Nursery PL-15→PL-30 · 15d Artemia + starter Indoor tanks (high ρ) Late Nursery PL-30→2g · 30d Pellet transition Circular tanks (4–6) Grow-Out 2g→30g · 120–150d FCR 1.6–2.0 10–14 circular tanks Market Harvest 30–40g · ₱450–550/kg Live / Chilled / IQF 2–3 tanks/month rotational harvest M1–2 Week 1 Days 1–15 Days 15–45 Days 45–200 Month 7–11+

Nursery Stocking Parameters

ParameterTarget
Initial stocking density500–1,000 PL/m³
Batch size50,000–150,000 PLs
Density at PL-30200–400 PL/m³
Survival target75–85%
Cycle duration15–20 days
Cycles per month1–2 (staggered)
Feed — early nurseryArtemia + starter 0.2–0.4 mm
Feed frequency6–8× per day

Grow-Out Production Parameters

ParameterTarget
Grow-out tanks operational10–14 of 16
Stocking density (2g entry)30–60/m³
Cycle duration (2g→30g)120–150 days
Target harvest weight30–40 g
FCR target1.6–2.0 : 1
Survival rate70–80%
Tanks harvested / month2–3 (rotational)
Annual production at full scale28–45 MT
Tiger Prawn Growth Curve — Body Weight (g) vs. Days in System
Section 05

Financial Projections

Staged capital deployment, diversified revenue streams, and rotational harvests combine for strong, de-risked financial returns.

3-Year Revenue by Stream — Base Case (₱ Million)
Capital Expenditure Breakdown (₱ Thousand)

3-Year Profit & Loss Summary

P&L Line ItemYear 1 — Ramp-upYear 2 — Scale-upYear 3 — Mature
Total Revenue₱3.6 – 6.8M₱8.5 – 14.5M₱12.2 – 22.6M
Cost of Goods Sold2.2 – 4.1M4.8 – 8.2M7.0 – 11.8M
Gross Profit1.4 – 2.7M3.7 – 6.3M5.2 – 10.8M
Labor (5–7 staff)0.8 – 1.1M1.0 – 1.4M1.2 – 1.7M
Overhead (power, maintenance, misc.)0.4 – 0.7M0.7 – 1.0M0.9 – 1.3M
Depreciation0.4 – 0.6M0.5 – 0.7M0.5 – 0.7M
EBITDA(0.2) – 0.3M1.5 – 3.2M2.6 – 7.1M
Interest / Financing Cost (est. 8% p.a.)0.5 – 0.7M0.4 – 0.6M0.2 – 0.4M
Net Profit (Pre-Tax)(0.7) – (0.4)M₱1.1 – 2.6M₱2.4 – 6.7M
Cumulative Cash Flow — 3 Scenarios (₱ Million)

Break-Even & ROI Scenarios

MetricConservativeBase CaseOptimistic
Break-Even Month14–1610–127–9
Payback Period3.5–4 yrs2.5–3 yrs2–2.5 yrs
5-Year IRR22–26%28–32%34–40%
NPV @ 12%₱4.2–6.8M₱7.5–11.2M₱12–18M
ROIC (Year 3)28–35%38–48%50–65%
Key Insight: The ₱15–20M embedded infrastructure value means the effective return on incremental capital deployed significantly exceeds the headline IRR figures already cited.
Section 06

Risk Assessment & Contingency Plans

Identified, quantified, and mitigated. No single failure point can kill the business.

Risk Matrix — Likelihood vs. Impact
White Spot Syndrome Virus (WSSV)
Critical
BIOLOGICAL
PCR testing ALL incoming PLs; 4-tier biosecurity; immediate quarantine + chlorine disinfection SOP; supplier health guarantees; crop insurance.
AHPND / Early Mortality Syndrome
High
BIOLOGICAL
Strict feed hygiene; water quality maintenance; probiotics in system water; avoid chronic overfeeding; regular Vibrio monitoring.
Power Outage / Aeration Failure
High
OPERATIONAL
Standby generator + UPS; SMS alarm system; emergency battery aerators per tank group; 24/7 on-site staff roster.
PL Supply Disruption
Medium
SUPPLY CHAIN
Minimum 2–3 accredited supplier relationships; buffer stock plan; can pivot to Vannamei PLs during shortfall period.
Feed Price Volatility (Fishmeal)
Medium
MARKET
3-month feed inventory buffer; multi-supplier tendering; explore local fishmeal supplementation; fixed-price contracts where available.
Pampanga Flooding / Typhoon
Medium
ENVIRONMENTAL
Circular tank walls provide height buffer; emergency drain SOP; facility insurance; raised inlet infrastructure; harvest timing strategy.
Cannibalism at High Density
Low–Med
BIOLOGICAL
Regular size-grading; PVC pipe shelters in tanks; consistent feeding frequency; strict density management per lifecycle stage.
BFAR Permit Delay
Low
REGULATORY
Engage BFAR-accredited consultant from Day 1; apply 90+ days before operations; land-based classification reduces scrutiny vs. pond farms.
WSSV Contingency Protocol: (1) Immediate tank isolation; (2) PCR confirmation within 24 hrs; (3) Full chlorine disinfection (50 ppm + dry-out); (4) Notify BFAR regional office; (5) Claim supplier PL warranty; (6) Pivot revenue to PL sales + Artemia for cash flow bridge; (7) Restock only after clearance and full biosecurity audit.
Section 07

Regulatory & Environmental Compliance

Land-based operations benefit from simplified environmental approval — a structural advantage over coastal pond farms.

Governing Agencies

AgencyKey Requirement
BFARFacility Registration; Export Accreditation; Health Certificate issuance per shipment
LGU (Pampanga)Mayor's Permit; Barangay Clearance; Zoning Compliance Certificate
DENR-EMBEnvironmental Compliance Certificate (likely CNC); Wastewater Discharge Permit
DOLERegistration; occupational health compliance; chemical handling training
FDA PhilippinesLicense to Operate if on-site processing or freezing
BFAR Export / BOCExport cert. per shipment; HACCP accreditation for frozen export (Phase 3)

Permitting Timeline & Costs

PermitTimelineCost (₱)
DTI / SEC Registration1–2 weeks3,000–8,000
Mayor's Permit + Barangay2–4 weeks5,000–15,000
BFAR Facility Registration4–8 weeks2,000–5,000
CNC / ECC (DENR)4–12 weeks5,000–25,000
Wastewater Permit6–10 weeks5,000–15,000
BFAR Export Accreditation8–16 weeks15,000–35,000
Total3–5 months parallel₱37K–108K
Advantage: Land-based operations are classified as low-impact aquaculture by DENR and BFAR, significantly simplifying environmental approvals.

Wastewater Management Plan

🔄

Primary Settling

Tank drain network directs purge water to primary settling box (concrete, 1.5 m³ per 4-tank group) — solids concentrate before secondary treatment.

🌿

Constructed Wetland

Overflow passes through a reed-bed or gravel biofilter before final discharge — removing ammonia and suspended solids to meet DENR Class C standards.

🌱

Sludge → Fertiliser Loop

Settled sludge dried in sludge drying bed; dried material applied as organic fertiliser for surrounding Pampanga agricultural land — circular economy model.

Section 08

Sustainability Practices

Aligned with national aquaculture goals, international certification pathways, and community development objectives.

🧬
Species & Genetic Integrity
SPF broodstock-derived PLs from BFAR-accredited hatcheries. Participation in BFAR genetic improvement programs to preserve native P. monodon heritage.
💧
Water Stewardship
Progressive RAS targeting 50–70% reduction in daily water use. Sludge-to-fertiliser circular loop. Constructed wetland polishing. Near-zero discharge by Phase 3.
Energy Efficiency
Fine-bubble aeration; LED facility lighting; variable-speed blowers. Solar panel pre-feasibility for Phase 3 — target 15–25% lower energy cost vs. conventional ponds.
🌾
Feed Sustainability
Target ASC-certified feed by Year 2. Explore local fishmeal from Philippine fishery by-products. Precision feeding trays to reduce FCR and feed waste.
🏘️
Local Economic Impact
Priority hiring from Pampanga community. TESDA Region III aquaculture training partnerships. PL sales support regional operators. 5–10 direct quality jobs created.
📋
Traceability & Food Safety
Batch-level records from PL sourcing to harvest. BFAR-compliant health certificates per shipment. Target GlobalG.A.P. aquaculture standard by Year 3.
🌡️
Climate Resilience
Land-based system inherently more resilient than coastal ponds to sea-level rise and storm surge. Indoor nursery protected from typhoon events.
🏆
ASC / GlobalG.A.P. Roadmap
Target ASC audit by end of Year 3. Estimated cost: ₱150K–250K. Certification unlocks direct access to Japan, EU, and US premium buyers at +10–15% price uplift on certified batches.

36-Month Implementation Roadmap

Month 1–2 · Phase 1 Setup
Business registration; BFAR application submitted; facility clean-out and engineering survey; Phase 1 capex — indoor tank epoxy coating, aeration install, water treatment setup.
Month 3–4 · Phase 1 Operations
BFAR facility registration received. First PL-15 batch procured (50,000 PLs). Quarantine and nursery activated. First PL-30 sales to external buyers. Biosecurity audit.
Month 5–6 · Phase 2 Transition
Phase 2 capex: 4–6 circular tanks epoxy-coated and aerated. Biofilter commissioning begins. Juveniles transferred from indoor tanks to circular tanks. Nauplii enrichment service launched.
Month 7–10 · Scale-Up
First grow-out tanks stocked at 2g. Biofilter mature. Second grow-out stocking batch. First partial harvest. BFAR export application submitted.
Month 11–12 · First Full Harvest
First full market-size harvest (30–35g). Phase 3 capex begins — drum filter and RAS upgrade installation. Cold chain and logistics partnerships established.
Month 13–24 · Full Production
Full 10–12 grow-out tanks operational. Rotational monthly harvest established. BFAR export accreditation. First frozen IQF export shipment. HACCP certification achieved. 30–40 MT/year run-rate.
Month 25–36 · Mature Operations
ASC/GlobalG.A.P. pre-audit. Full 16-tank system optimised. Broodstock maturation program feasibility explored. Investor dividend review. Expansion to additional sites assessed.