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Mushroom Business Proposal
Mushroom Business Proposal
Mushy
Mush
Introduction
Mushrooms is a palatable food accepted by people as daily diet and alternative to meat
and fish, also it is a vegetarian diet but give nutrition of non- veg such as some essential
amino acids, vitamins and minerals. Mushroom is significant not just from dietary and
therapeutic perspective but also from selling out. It requires little space or land, and
subsequently, it is vital for landless minimal landholders. Mushroom production has
massive potential as an income-generating strategy. It develops independent of
daylight, feeds on natural matter, and doesn’t need fruitful soil. Notwithstanding the
floor, air space is additionally used, bringing about higher efficiency. Food items have
added mushroom in all their dishes making it more popular and mandatory ingredient
in cooking. Nowadays, people are fond of consuming mushroom in different ways like
curry, snacks, soup, salad, mixed with rice and pickle etc.
Vision Statement
To become the customers first choice is supplying mushroom in Batangas City and
nearby province in 5 years’ time
Mission
To enlighten customer on the virtues and benefits of mushroom. To provide the target
customer high quality mushrooms. To offer competitive price to customer.
Project Background
As the simplest form of business, the business registration process for a sole
proprietorship is relatively easy. Sole proprietorship are also the easiest to run since
they do not have the same formalities and regulation that corporation and partnership
have.
Physical Plant
A. Building
Mushroom do not require land or soil in acres for them to grow. A very small place
which not open to direct sunlight is more than enough to carry the business. It can be
located in our vacant lot in Batangas City where there is a storage room as temporary
place in cultivating mushroom. Mushroom can tolerate some light, but the spot should
stay dark or in low light. White button mushrooms need to be grown on composed
manure, oyster mushroom on straw.
B. Raw Materials
The raw materials that are used in oyster mushroom production are sawdust, rice
bran, lime and sugar. Initially, these materials are composted and bagged using
Polyethylene bags, PVC pipes, newspaper, rubber bands and such.
A number of tools and equipment will be used in the study. Weighing scales will be
used which is for weighing harvested mushrooms. Sprayers will also be used for
watering and keeping the fruiting bags moist. Alcohol lamps are used during
inoculation as well as grain spawn production.
C. Production Schedule
Oyster mushroom will have a period cycle of three per year. This is because the life
span of oyster mushroom fruiting bags which last for 3 to 5 months. For
conservatism purposes I projected only 4 months. It started with tissue culture and
grain spawn production which is done for the first month. Consequently, the
mixing of inputs is also done while tissue and grain spawn production is being
done. The latter part of the first month is allotted in the bagging and pasteurizing
practices. It is followed by inoculation or seeding the fruiting bags. Incubation is
done after inoculation to let the mycelia spread in the fruiting bags After a month, it
can be hanged and harvested for four (4) months
For this kind of business we need to secure DTI, Mayors permit, BIR and DFA because I
plan to have it sell in stores like Baymall, Waltermart, Shopwise and the likes.
Production Process
There are different steps or farm practices needed for producing oyster mushrooms.
Every step/phase in the oyster mushroom production is important to produce them.
Stage 6 Stage 1.
Harvesting Grain
of oyster Spawn
mushroom Production
Stage 2
Stage 5 Composting
Inoculation and Mixing
Incubation of Fruiting
And Hanging bag inputs
of Fruiting
Stage 4 Stage 3
Pasteurizatio Bagging of
n of Fruiting Fruiting bag
bags inputs
Grain Spawn Production
The first part of producing Oyster mushrooms starts with the creation of
spawn. This is done in a sanitized room to minimize contamination. This is the most
meticulous part in producing Oyster mushrooms because everything must be
sanitized, to make the area air free decreases the probability of possible contaminants.
It starts by preparing a mother culture and spawn grains. A small tissue of oyster
mushroom is inoculated into prepared potato dextrose agar (PDA). This is
incubated to allow the growth of the mycelia on top of the media which produces
spawn agar. After one to two weeks of incubation, a small portion of the pure culture
is transferred or inoculated into a bottle containing sterilized grain like sorghum or
corn to multiply the culture and for easier inoculation into the substrate bags
(Andam. & Dulay, 2014). Contamination is usually the problem in creating the
spawn because once the spawn is contaminated it can no longer be used. The use of
unsanitized
equipment and exposure to too much air are some of the main reasons why the
product becomes contaminated.
Composting and mixing of fruiting bag inputs start with the mixture of
sawdust or rice straw, rice bran, lime and sugar with the use of a shovel for sawdust
fruiting bags. According to Bureau of Plant Industry, the materials that will be
mixed is sawdust or rice straw, molasses or brown sugar, rice bran and lime.
Seventy-eight percent of the mixture will consist of sawdust/rice straw, 1%
molasses/brown sugar, 20% rice bran and 1% lime. Consequently, this is the ratio
that the producers use in creating fruiting bags. Majority of the producers uses these
inputs for production. Fertilizer is commonly applied during this stage of
production which are commonly rice, past compost and lemon grass. It is
composted two to three weeks and mixed every three days in the composting period.
Composting and Mixing of inputs
Pasteurizing (Steaming)
Inoculation
Incubation
Incubation is storing the inoculated fruiting bags to let the mycellia spread
inside the fruiting bags. It is the step prior to transferring oyster mushrooms to the
growing houses. It is usually done by storing the inoculated fruiting bags in a clean
and dark room. It is usually done 2 to 4 weeks depending on the rate of how the
mycellia spread.
Mature incubated fruiting bags that are ready to be hanged
Hanging
Harvesting
Financial Plan
Producing mushrooms doesn’t need huge amounts of money yet can give
you a great profit. Starting capital may come from own savings. Personnel for the time
being or at the start of the business can be my cousins who have no work around the
area or those relatives who shepherd animals.
Cost and Return Analysis of Oyster Mushroom per 50kg rice straw (dry
weight) at 300 Fruiting Bags
ITEM MAN- DAYS AMOUNT (P)
A. LABOR COST
Hauling of rice straw 2 400.00
Chopping of rice straw 5 1500.00
Soaking of rice straw 1 200.00
Packing of fruiting bags 5 1500.00
Sterilizing of fruiting bags 2 400.00
Inoculating of fruiting bags 1 1200.00
Sub-total 5,200.00
B. MATERIAL COST Quantity Unit Price (P) AMOUNT (P)
Pp plastics bags 3 packs (8x12) 100.00 300.00
Steel Drum 1 800.00 800.00
Steel saw 1 150.00 150.00
PVC pipe 1 tube 128.00 128.00
Firewood 5 bundles 40.00 200.00
Table 1 500.00 500.00
Cotton (300 g) 3 rolls 100.00 300.00
Denatured alcohol 1 bottle 70.00 70.00
Rubber band ¼ ¼ 1/4kg 40.00 40.00
Ethyl alcohol 1 bottle 75.00 75.00
Grain spawn 6 bags 75.00 450.00
Sawdust 3 sacks 10.00 30.00
Rice bran 1 kg 12.00 12.00
Sub – total 3,227.00
C. Gasoline Expense 500.00
TOTAL OF A & B 8,975.00
D. GROSS INCOME 90 kg 150/kg 13,500.00
E. NET INCOME 4,525.00
F. RETURN ON 33.52%
INVESTMENT (ROI)
Market Segmentation
The farm will assure to have the following criteria so that the oyster
mushroom consumers will be satisfied and will attract more customers.
Product mix
Mushrooms are not just produced and sold raw; growers creatively make
products out of harvested mushrooms. They make burgers, embutido, longganisa,
adobo, curry, bagoong, tocino, and laing using the mushrooms that they cultivate.
Other producers turn them into mushroom chips and chicharron.