Starting a Tinapa or Smoked Fish Business

Smoked fish or tinapa is fish cooked/preserved through smoking and is a Filipino native delicacy. It has a two-stage process: the brining part, which gives it a good salty taste and makes it moist; and the smoking part, which cooks the fish and gives it the smoky flavor. Almost any fish can be made into tinapa.

Tinapa is a popular breakfast item served with fried eggs and sliced tomatoes.

Estimated Investment Cost (based on 2009 prices)

Cost of Utensils:

  • Cutting Board – 60.00
  • Strainer Bowl, 8 pcs @P155 – 1,240.00
  • Knife – 110.00
  • Wooden Spoon – 50.00
  • Measuring Cup – 45.00
  • Big Basins, 5 pcs @ P150 each – 750.00
  • Cooking Tongs – 70.00
  • Trays (12×8 inches), 8 pcs @P75 each – 600.00
  • Fire charcoal, 20 packs @P10/pack – 200.00
  • Sawdust/Wood shavings, 2 sacks @P30/sack – 60.00
  • Brining Container, 5 pcs @P275 each – 1,375.00
  • Fishnet 5 m, @P17.00/meter – 85.00
  • Polyethylene plastic (0.05 mm thick), 100 pcs @P30/pack of 100’s – 30.00
  • Sub-Total – P4,675.00

Equipment:

  • Weighing scale for fish – 900.00
  • Plastic Sealer (for sealing of plastic bags) – 800.00
  • Smokehouse (made to order). 2 pcs. @ P2,500 each – 5,000.00
  • Electric Stove or Gas Stove – 900.00
  • Bamboo Sieves, 8 pcs @P200 each – 1,600.00
  • Sub-Total – P9,200.00

Raw Materials/Ingredients:

  • Fresh Galunggong @P90/kg – 1,800.00
  • Salt, 1.5 kg (for every 20 kg of fish) @P10/kg – 15.00
  • Water – 8.00
  • Sub-Total – P23.00

Estimated total investment cost – P15,698.00

Tip: Smoked fish products are available throughout the year because a wide variety of fish species like Lapad, Tunsoy, Banak, Kabasi, Hasa-Hasa, Galunggong and Tamban can be processed using the same technology. Except for Galunggong, all other species command a higher price.

Procedure

  1. Cut the fish along the back just above the backbone to split it open leaving the belly solid.
  2. Remove all internal organs and blood.
  3. Wash fish thoroughly with running water.
  4. Prepare brine solution (i.e.. mixture of water and salt). For 20-kg fresh fish, use 4 gallons of water and 1.5 kg of salt.
  5. Place the fish in the brine solution for 30 minutes. Be sure that the fish is completely submerged.
  6. Boil the brine solution for at least 5 minutes. Boiling the brine solution aids in maintaining the firmness of the fish.
  7. Strain the cooked fish and arrange in bamboo sieves. Be sure that excess water is completely drained.
  8. Partially sundry fish for 30-45 minutes. Make sure to cover fish with fishnet to avoid contamination.
  9. Prepare smokehouse using charcoals and sawdust or “kusot” as fuel.
  10. Put fish in bamboo sieves inside the smokehouse and cover. Smoking time varies according to size or dryness of fish. Longer smoking time makes storage longer.
  11. Remove fish from bamboo sieves and let them cool in room temperature.
  12. Weigh and wrap in plastic bags, then seal.

Assumption: Fish Smoking is done for 22 days/month

Estimated Costing and Pricing (for 1 kg)

  • A. Direct cost (fish, ingredients, packaging, labor) – 110.30
  • B. Indirect cost (water, electricity, contingency) – 13.23
  • C. Production cost/kg (A+B) – 123.50
  • Product pricing (C+25% markup) – 154.41
  • Market price/kg  – P160-P200

Tips:

  • The higher the volume of production per day (more than 20 kg), the lower the production cost, thus further increasing the mark-up to mom than 25%. The higher the markup, the higher the profit margin.
  • If price per kilogram is tower compared with the existing market price, increase mark-up to 25% or more.

Registration Requirements

  • Business name registration (www.bnrs.dti.gov.ph)
  • Mayor’s/Business Permit (check your local municipality/city)
  • BIR TIN (www.bir.gov.ph)
  • BFAD Certificate (www.bfad.gov.ph)

Financing Facility

  • People’s Credit and Finance Corp (www.pcfc.gov.ph)
  • Small Business Corp. ([02] 751-1888)
  • NLDC ([02] 817-3012/2657/0445)

Technical Assistance (Training and Seminar)

  • DOST-STII ([02] 837-2191 to 95, www.stii.dost.gov.ph)
  • TESDA (www.tesda.gov.ph)

source: dti.gov.ph

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