Fauzan Hangriawan, Improving the Wellbeing of Catfish Farmers

Thursday, 01 November 2012

Concerned by the low prices paid to catfish farmers by middlemen, Fauzan (26) decided to open his own outlets to sell catfish directly to the end consumers. Not only that, he was even prepared to buy the catfish at higher prices than the middlemen so as to boost the incomes of catfish farmers.
While middlemen pay only Rp 11,000/kg, Fauzan pays Rp 12.500/kg for the catfish he purchases. “At the very least, if I have eliminated two levels from the marketing chain – the middlemen and the agents in the market. I buy directly from the farmers and then sell directly to the consumers,” said Fauzan when interviewed at his catfish outlet in Krukut, Depok, West Java (5/10). Of course, the higher prices leave the catfish farmers better off. Currently, Fauzan has some 20 catfish farmers in Jagakarsa and Ciganjur districts selling their fish to him.
In addition to partnering with farmers, Fauzan has also helped them develop their own catfish ponds by way of investment. He provides two alternative investment options, with the first consisting of putting up capital or land, and the second of putting up both land and capital. To make it easier to manage investments, those in the form of land are concentrated in a single location. “At the present time, what we are doing is providing land and operations, while investors provide capital. The distribution ratio is 60% to the investors and 40% for me, ” explained Fauzan, an alumnus of Atma Jaya University’s Faculty of Law in Jakarta.
Expansion and Hatchery
Fauzan has been cultivating catfish himself since September 2009, when he was still a student at Atma Jaya University in Jakarta. With start-up capital of just Rp 1.5 million, he constructed his first catfish pond behind his parents’ home in Cipedak, Jagakarsa, South Jakarta. Despite an initial failure, his business took off after he was taught how to raise catfish properly by Nasrudin, a successful catfish farmer in Bogor.
Unlike those produced by other farmers, the catfish raised by Fauzan and his partners are Sangkuriang rather than Dumbo catfish. Within just a week, Fauzan can harvest up to 900 kg of ready-to-consume catfish (2 months of maintenance), which he sells for Rp 15,000/kg. Of this figure, 60% is sold through his two outlets – one in Krukut and the other in Cinere, while the rest is sold through traditional markets. Fauzan’s outlets sell directly to housewives, while his market sales are aimed at restaurants and those who normally do their grocery shopping in their local market.
“In addition to producing large catfish, I also run a catfish hatchery business that I manage myself,” said Fauzan, who calls his business Sylva Farm Bangun Bangsa. Every month he produces about 200,000 young Sangkuriang catfish, which he sells for Rp 150 each. Of his total income, Fauzan sets aside one third for social activities, primarily intended for farmers that need financing to develop their businesses.
Increasing Turnover 
Winning a 2010 Mandiri Young Entrepreneur Award in the Diploma and Degree Program (Industry & Services) marked the turning point in the growth of Fauzan’s business. “This led to a significant expansion in my turnover. Arguably, it reduced the time needed to grow my business by 3-4 years compared with friends who started out in the business at the same time as me,” said Fauzan, the eldest of three siblings, adding that his turnover actually rose more than 100%.
This, he said, was thanks to Bank Mandiri’s consistent help in the fields of business training, management and so forth. In addition, Fauzan has also benefitted from publicity in various media outlets, both print and electronic, and has participated in a number of exhibitions so as to help him network with other entrepreneurs.
“The most significant benefit is that there is greater and easier access to venture capital,” said Fauzan. In 2010, Fauzan availed of a micro-loan from Bank Mandiri, which he used to further develop his catfish business. If Fauzan’s first marketing efforts were confined to the regency or district level, he has since been able to expand his marketing effort to the national level.
Tips for Success
  • Never give up. If you are able to learn this, then you will get up again every time you fall.
  • Always focus on the business you are involved in. Young people suffer from two problems: they are too easily satisfied and always in a rush. Focus first on finishing one thing before turning to another.
  • Try to include the people around you. Provide an orientation and do not seek too much profit. If those around us are successful, we will also be successful.
  • Ask your parents for their blessing for your business.
Business History
  • When in grade 3 of junior high school, Fauzan helped his parents sell coconuts, rice and bricks in Lampung for 2-3 years.
  • After he entered high school, Fauzan started selling shoes. He then worked with housewives who made cassava chips, which he then sold in a number of places.
  • On entering college, Fauzan invited two friends to open up a dumpling shop with him. Unfortunately, this venture did not last long, and it was only 2 weeks before Fauzan was abandoned by his friends.
  • As he had already leased an outlet for the dumpling business, Fauzan then used it to establish a Chinese food outlet. This venture only lasted 1.5 years because his turnover was just enough to cover operating expenses.
  • His next business venture was making shirts for a new political party – with his profit from the shirt business, Fauzan established a printing enterprise.
  • In September 2009, Fauzan launched his catfish business with start-up capital of Rp 1.5 million.
Bio Data
Name: Fauzan Hangriawan
Place and Date of Birth: Pontianak July 24, 1986
Education:  Bachelor of Law, Atma Jaya University
Business: Owner of Sylva Farm Bangun Bangsa Catfish Farming Business
  • 2010 Mandiri Young Entrepreneur Winner in the Diploma and Degree Program (Industry & Services) Category.
  • Presented Successful Young Entrepreneur Award by of the Ministry of Cooperatives and SMEs at the National Entrepreneurial Movement ceremony.
Sylva Farm Bangun Bangsa – Fauzan Hangriawan
Jl. Purwa Kingdom 1, Kavling DKI Blok U No. 3
Cipedak, Jagakarsa, South Jakarta
Mobile: 08561281234
Souce : Ide Bisnis Magazine