Republic of the Philippines

Agusan del Sur State College of Agriculture and Technology

San Teodoro, Bunawan, Agusan del Sur

A MICROPROJECT PROPOSAL FOR

WHITE OYSTER MUSHROOM (Pleurotus ostreatus) PRODUCTION

Submitted by:

LILIBETH O.PERAL
BAT-4A Student

Submitted to:

RAYMOND F. GABICA
Technical Adviser

JUNE 2022
 INTRODUCTION
Mushrooms are fleshy fruiting bodies that are widely produce and regarded as
one of the delectable fruits( Alexopoulos et Al., 1996)( Mandbouly and Al-
Hussainy, 1996) Mushroom thrive from decayed materials that are rich in
lyrin, cellulose, and other complicated carbohydrates. They are rich in
carbohydrates, protein, vitamins and minerals ( Ananbeh, 2003).

Pleurotus ostreatus, an oyster mushroom grows quickly on a variety of

agricultural wastes, including olive, cake, tomato puff, pine needles, wheat
straw and banana leaves( Ananbeh and Almomany, 2005; 2008; Almomany
and Ananbeh, 2001). Aside from those materials mentioned above, they also
grows in corn cobs, saw dusts and other decaying materials that are present in
the farm. Individual Oyster mushroom frequently develop in layers on top of
one another ( Haglov, 1999).

Worldwide production of large amount of agro-indiatrial works frequently

results in issues in the environment and human health (Gary and Gupta,
2009). Additionally, the mushroom farming industry was develop as a result of
the developing world lack of protein and increasing need of affordable nutrient
dense food( Silvaprakasm and Kandasawny, 1981; Lebanon et Al., 1993; Yildez
et Al., 1997; Croan, 2000; Zerkavis et Al., 2001).

Moreover, there are interest in mushroom bas a source of biologically active

substances of medical potential such as anti-cancer, immunopotentiating,
hypocholestreodemic and hepatoprotective agents has recently increased. This
novel “Mushroom Nutriceuticals", can be extracted from either the fruiting
body or the fungal mycelium and is significant part of the mushroom
biotechnology sector, which is growing ( Buswell, J.A. and Chang, S.T., 1993).

Mushroom cultivation in the province or the region is very limited in spite of

the environment in which is very suitable for mushroom production. The
limitations are attributed to not only to the improper dissemination of available
information to the farmers but also due to the lack of practical technologies
which local farmers could avail of. Thus, efforts are needed to produce
technologies which make use of indigenous materials, one of the common
materials are rice straws, corn cobs and saw dusts which can be accessed in
any farms and can be used as a substrate on the non-living materials or the
base for fruiting bags.

Generally, engaging in oyster mushroom production as my micro project

evaluates me on what I learn during those years in staying in a four walled
room, listening to the idea and knowledge that are given by the educator. Also,
it develops and improves my skills and knowledge and practice myself to make
an enterprise on my own.

.
Objectives

This Microproject proposal aims to:

a. Produced 70 kgs. Of Oyster Mushroom within one cycle;

b. market produced at prevailing market priced; and

c. attained 20% ROI.

PRODUCTION ASPECTS

A. Product Description

The product of the enterprise Oyster Mushroom was in pack form. Each pack

of Oyster Mushroom weighs 500 grams.

B. Product Size

There were 500 packs of Oyster Mushroom weighing 500 grams each.

C. Location of the Project

The project area was located at the Mushroom production area of Agusan Sur

State College of Agriculture and Technology (ASSCAT) in San Teodoro,

Bunawan, Agusan del Sur.

 D. Production Process

The first process for the Oyster Mushroom production was the site selection for

construction of the production house. Next was cleaning of the area followed by

constructing of the production house? If the production house is ready, the

next process was the purchasing of fruiting bags that was followed by the care

and management. When the Oyster Mushroom is matured it is now the time

for harvesting day after day routine and ready for the marketing process.

E. Facilities, Equipment and Tools

The Oyster Mushroom production had the facilities, equipment and tools such

as production house, sprayer, plastic bags and weighing scale.

F. Waste Disposal

After termination, the fruiting bags was used as organic fertilizer.

 CALENDAR OF ACTIVITIES

Date Activities Item Quantit Unit Unit Amount

y Price

Feb. 2022 Start sprayer 1 piece 78.00 78.00

Cleaning and
preparing the
area
march Purchasing Tent 4 meter 75 300.00
2022 of materials
March lumber/bamboo 1 Bundle 100 100.00
2022 Nails 1 Kg. 50 50.00
Tie box ¼ Kg. 60 15.00
PVC 2 meter 15 15.00
march Repairing the cellophane 2 MD 100 200.00
2022 Production
House
march Purchasing Fruiting bags 400 bag 8,000.00
2022 of Fruiting Transportation 100 100.00
bags
march Purchasing Cloth 3 Meter 10 30.00
2022 of tools (etc.)

Total 8,888.00
 MARKET ASPECT

A. Demand and Supply of the Commodity

The demand for Oyster Mushroom in Bunawan, Agusan del Sur was relatively

high. However, the supply in the market was limited and there were only few

seller of Oyster Mushroom therefore there was no problem in marketing.

Marketing Strategy

The harvested Mushroom was packed per kilograms and it was delivered

directly to the contact buyer. Harvested Oyster mushroom was also sell online

through posting it on Facebook account. Discounted prices was also being

given to those buyers who would buy at least 3 kilograms or more of Oyster

Mushroom.
MANAGEMENT AND STRUCTURAL ORGANIZATION

Structural Organization

DEAN

PROGRAM CHAIRPERSON

TECHNICAL ADVISER

MICRO PROJECT STUDENT

Function of each Position

Dean – approves the student to conduct in a requested area with a chosen

commodity.

Program Chairperson – evaluates and monitors the micro project of the

student and consults the technical adviser.
Technical Adviser – monitors the micro project of the student and consults
the market aspect.

Micro project Student – performs highly technical skills and records all
activities, market the products, and supervise the operation of the project.
VI. FINANCIAL ASPECT

Monthly Cash Flow

FEBUARY MARCH APRIL MAY AMOUNT

Cash in Flow
Equity 8,888 8,888
Sales 4,753.3 4,753.3 4,753.3 14,260.00
Total Cash Flow 8,888 5,198.6 5,198.6 5,198.6 23,148.00

Cash Outflow
Lumber 100 100.00,
Nails 50 50.00
Tie box 15 15
Fruiting bags 8,000 8,000
cloth 30 30.00
sprayer 78 78.00
PVC 15 15.00
tent 300 300
transportation 100 100.00
cellophane 200 200.00
Total Cash 8,888 0 0 0 8,888
Outflow
Net Cash 5,372 4,753.3 4,753.3 4,753.3 14,260.00
Outflow
Beginning O.00 0.5 4,753.3 9,506.6
Balance
Closing 1.00 4,753.3 9,506.6 14,260.00
Balance
VII. INCOME STATEMENT

Sale of Oyster Mushroom 71.3 x 200.00 = 14,260.00

Total Sales 14,260.00
Cash Expenses Amount
lumber 100.00
nails 50.00
Tie box 15.00
PVC 15.00
Fruiting bags 8,000.00
cloth 30.00
sprayer 78.00
transportation 100.00
tent 300
cellophane 200.00
Total Cash Expenses 8,888
Net Income 5,372

B. BREAK-EVEN POINTS

a. Break-even Weight
BeW= TVC = 8,888.00=44.44kgs.
200.00

b. Break-even Price

BeP= TVC =8,888.00 =124.6 /kg.

W 71.3 kgs

C. RETURN OF INVESTMENT

ROI = Net Income X 100%

TVC
 =5.372 X 100%
8,888.00
=60.44%

D. SENSITIVITY ANALYSIS

Norma Weight TVC Price Weight TVC Weight Weight

l Decrease Increase Decrease Decrease Increase Decrease Decrease
d by 10% d by d by 10% d by d by d by d by
10% 10%, 10%, 10%, 10%,
TVC Price Price TVC
Increase Decrease Decrease Decrease
d by 10% d by 10% d by 10% d by
10%,
Price
Decrease
d by 10%
Yield(kg 71.3 71.3 71.3 71.3
)
Change 64.17 64.17 64.17 64.17
in Yield
Price 200 200 200 200
per Kg.
Change 180 180 180 180
in Price
Total 14,260 12,834 14,260 12,834 12,834 14,036.4 11,550.6 11,550.6
Sale
TVC 8,888 8,888 8,888 8,888
Change 9,776.8 9,776.8 9,776.8 7,999.2
in TVC

Gross 5,372 3,946 4,483.2 3,946 4,259.2 6,037.2 2,662.6 5,551.4

Margin
GM/ 0.60 0.44 0.45 0.44 0.43 0.62 0.29 0.44
TVC
 DISCUSSION

The micro project of Oyster Mushroom Production was conducted at Agusan

Del Sur State College of Agriculture and Technology (ASSCAT) Mushroom
production farm area in Bunawan, Agusan Del Sur from March to May 2022.

The production was made up of 500 fruiting bags. Based on the result, the
total harvested was about 71.3 kilograms it surpasses the expected output of
70 kilograms with a proportion yield 142.6 grams per bag. The result of return
investment (ROI) was 60.44 percent. This result was associated of balance
production management.

CONCLUSION

Therefore, in engaging Oyster mushroom production you must expect

a very risky and is not easy kind of production. Your perseverance and great
patience is highly needed. At the first step of the process it is very different and
uncomfortable especially for making fruiting bags for the production. It must
be allowing your hard works to fulfill your production. You can be more
strategical in dealing buyers or customers in order for you to have a successful
business.
 RECOMMENDATION

The recommendation of Oyster mushroom production must be as follows:

1. It should have a better place, avoid flooding area;

2. The processing area, inoculation area and the production area must be
separated;
3. The area must be sanitized;
4. Maintain low temperature;
5. Maintain the cleanliness to avoid the contamination;
6. The substrates must be hanging; and
7. Watering must be done at least twice a day.
 LITERATURE CITED

Ananbeh, K.M.,(2003).Production of Oyster Mushroom on different

Agricultural
waste available in Jordan. M.Sc. Thesis, Jordan University, Jordan
Retrieved from : http: //.Ncbi.Nlm, Nih. Gov/pmc/ articles/ PMC
4250492/. On January 21, 2016.
Chang, S.T., Yang and Yokota (1991). Mush. Topics. Retrieved from :
http:www.//:mushroom growing today, and fader ltd.london pp. 188. On
January 14, 2016
Dike, K.S. (2011). Mushroom Cultivation. Retrieved from:
http://scholarresearchlibrary.com/JMB+voll--1553/JMB-2011-1-3-4-
14.pdf. On January 14, 2016.
Mandeel, Q., A. Al-Laith and S. Mohamed (2005). Cultivation of Oyster
Mushrooms (Pleurotus spp.) on various lignocellulosic wastes. World
Journal of Microbiology and Biotechnology, 21(4):601-7
Pettiper, G. L. (2006). Cultivation of the oyster mushroom (Pleurotus ostreatus)
on Lignocellulosic Waste. Journal of the Science of Food and
Agriculture.
41, 259265.
Rahnama, License BioMed Central. (2014). Retrieved from:
http://bmbiotechnolbiomed.central.com/articles//.
Royse,D,J., T.W. Rhodes, S. Ohga, and J.E. Sanchez (2004). Yield, mushroom
size
and time to production of Pleurotuscornucopiae (oyster mushroom) grown
on switch grass substrate spawned and supplemented at various rates.
Sanchez, C. (2015). Cultivation of Pleurotus ostreatus and other edible
mushrooms. Appl]. Microbiol. Biotechnol,85, pp. 1321-1337. Retrieved
from : http: //www.sciencedirect.com/science./article/pii.

Tremblay, (2014). USDA national nutrient database oyster mushroom.raw.

Retrieved from: http: //healthyliving.azcentral.com/benefits-using-
mushrooms
on February 25, 2016.
Yildiz, S., V,C. Yildi, E.D. Geser and A. Termiz (2002). Some lignocelluocis
waste
 used as raw materials in cultivation of the-umn.
Edu/bitstream/3842842/7928- 28937-1 pb.pdf. On March 10,
2016.

PLATES
Mushroom House preparation
 Shredding of corn cobs for substrate preparations

Substrate mixing and bagging (corn cubs and saw dust, molasses and Agri Lime)
Steaming of the fruiting bags
Inoculation of Spawn
Harvesting of Oyster Mushroom
Packaging of Oyster Mushroom
 APPENDICES
Bag Total Bag Total Bag Total Bag Total
no. grams/bag no. grams/ba no. grams/bag no. grams/ba
g g
1 120g 26 100g 51 200g 76 60g
2 320g 27 145g 52 90g 77 50g
3 140g 28 75g 53 100g 78 55g
4 55g 29 110g 54 150g 79 125g
5 105g 30 65g 55 60g 80 180g
6 148g 31 150g 56 65g 81 170g
7 342g 32 60g 57 50g 82 200g
8 250g 33 75g 58 150g 83 130g
9 200g 34 190g 59 100g 84 435g
10 190g 35 125g 60 265g 85 100g
11 400g 36 110g 61 50g 86 350g
12 100g 37 100g 62 105g 87 125g
13 185g 38 120g 63 195g 88 150g
14 50g 39 100g 64 85g 89 200g
15 140g 40 100g 65 160g 90 170g
16 110g 41 115g 66 55g 91 155g
17 160g 42 50g 67 100g 92 200g
18 55g 43 150g 68 150g 93 250g
19 305g 44 40g 69 110g 94 150g
20 145g 45 65g 70 120g 95 180g
21 135g 46 55g 71 165g 96 150g
22 70g 47 130g 72 80g 97 180g
23 170g 48 115g 73 220g 98 210g
24 160g 49 75g 74 100g 99 195g
25 180g 50 150g 75 100g 100 180g
Total grams of 100 bags 14,260.00
SALES TVC NET INCOME
14,260.00 8,888.00 5,372

Average yield per bag

14,260grams/100 = 142.6 grams/bag

Total yield for 500 bags

=142.6x 500=71,300 grams

=71,300/ 1000g

=71.3 kgs

Get the income

71.3kgs x 200 pesos

=14,260.00 Php