PROJECT NAME: MUSHROOM PRODUCTION

PROJECT IDENTIFICATION

Source of the project idea.

The genessis of mushroom production project emerged out of the fact that, dependency on employment
has proved inefficient in making one realize his personal development goals to the extent that these
goals degenerates into a nightmare as days passby and the individual person gets older and older
without realizing his dreams which he had, during his youth. It is out of this concept that Mr. Bernardius
Rwassa started thinking outside employment box, by trying to at least get a suppliment to employment if
not a replacement of employment dependance. He generated many project ideas but he settled for
mushromm production as the project to start with. This was in April 2017.

Importance of the project

This project draws its importance from the solid need of the owner of the idea to create an environment
whereby, he will own the source of fund for his economic development and prosperity such that, general
management and development of his family depends largely on the income, the source of which is
owned by him. The aim here is to create individual economic stability and avert dependece.

Evaluation of present situation

Currently, mushroom production in Tanzania is gaining momentum. This is mainly due to the following
factors;

a) Economic and Geographic features

• Growth of middle income class families in Tanzania

• Liberalization of country,s economy which freed citizens to engage in different types of

economic undertaking.

• Globerations which promoted investment in Foreign Direct Investment (FDI) which in turn
incereased the population of foreigners who came with habits and knoweldge of importance of
mushroom consumption for health. This situation created favorable conditions for mushroom
production in terms of availability of market for this project, eg; the chinees community working
in DANGOTE CEMENT industry in Mtwara have not got a reliable supplier for this produt to date
becaouse of very small scale type of production curently going on in Tanzania on one hand and
the smaller size of mushroom production in Tanzania on the other hand.

• Mushroom production is sensitive to temperatures whereby, production favoures cool

temperatures which is opposed to temperatures in the costal area of Tanzania, but since the
crop is produced inhouse, temperatures can be manipurated to ideal one.
 • b)Human Resource features

In terms of market population, there is compelling evedence of availability of enough population for the
market. This is primarily because, traditionally all tribes in Tanzania consume mushrooms. This advantage
is slitely affected by the fact that appart from consumption of naturally growing mushrooms in the bush,
mushrooms grown in greenhouses by man especially in Tanzania, is considered to be fit for middle and
higher income families. This is due to moderately low purchasing power affecting many families now on
one hand, and lack of knowlegy of importance of consumption of mushroom on the other hand.

But also, human resource in terms of labour is not a problem for production since a sizable farm can be
managed by only one person, especially for farm upkeep keeping in mind that mushroom production use
very small space hence needs mimnimal number of labourers..

Government policy

The Government Agriculture and Livestock policy 1997 is silent on production of Mushrooms in Tanzania,
hence do not provide for any clue on its impotrance in improving and maintaing good health of the
population as well as improving economic status of those involved in its production. However, the
objective of agriculture and Livestock policy 1997, is to improve food security and alleviate poverty while
promoting intergrated and sustanable use and management of natural resources such as land, soil, water
and vegitation. Since the relevant policy has not touched this crop, no hope of government subsdies on
promotion of the crop even if the product of it, is very essential for combating deseases such as
controling blood pressure, lowering colesterole, combating cancer and strengthening bones as well as a
good source of income especially to poor families since the project is not very costly.

Project Rationale

i) Economic justfication of the project

Economically, this project will first enhance economic capabilities of the project owners through
proceeds gained after selling their products. At its full production capacity, the project aims at
producing 1000 kilograms of mushrooms per day, (1000). Curent retail price for one kilogram of
mushroom in Dar Es Salaam is 10,000 shilings. Therefor, 1000 kilograms of mushroom will sell at
1000 x 10,000.00 = 10,000,000.000 per day. Therefore, this is sales of 30,000,000.00 per month. One
harvesting periode takes three months which will produce 90,000,000.00 per month. This is equal to
income of 270,000,000.00 - per anum.

Initial material input for this size of firm is about 300,000.00 to be incurred progressively.

ii) Social justfication

This project will help consumers of its products to improve their helth. Developing countries
including Tanzania are experiencing prolifilation of non communicable deseases, most of which
eminate from lack of balanced diet, one of them being heart deseases including hyper/hypotension.
By consuming mushrooms regulerly in meals, the population will be able to avert these deseases as
explained elsewhere in this document.
Further to the foregoing, growing mushroom is very cheap such that, upon getting knowledge, even
families with low purchasing power can grow their own mushrooms in an amount comensulating
with their cunsumption capacity, just inhouse and be able to sale excess if any, to their negbours
within their visinity to generate income.

Design and components

Objectives of this project

The main objective of this project is to produce an output of 1000 kiligrams when operating at its full
capacity within the following scale and timelines.

i. To start production of mushroom progressively toward full production of 1000 kilograms by

21/6/2018.

ii. The first production to start by 21/4/2017 aiming at producing 10 kiligrams per day as a pilot
project.

iii. Production at 50 kilograms per day by 21/9/2017.

iv. Production at 300 kilograms per day to start by 21/12/2017

v. Production at kilograms 600 per day to start by 21/3/2018.

vi. Production at 1000 per day by 21/6/2018.

Sequence of activities;

a) Activities which must be completed before the activity in question can commence: Purchase
of items and performing activities other than ones in ( b) and (c) in the activity flow below.

b) Activity in question

• Planting, spreying and harvesting

c) Activity which can not commense until the activity in question is completed.

• Selling of harvested products

Project material components

1. Five barelles (Metalic)

2. Four Kilograms of sugar

3. Four kilograms of lime

4. 50mm of 30 m long. (Non metalic)

5. 5 tins of maize grain peels

6. 10 kilograms of indignous chicken droppings

7. 10 bags of saw dust and 10 bags of plane straws.

8. 1 kilogram of rubber bands

9. 10 pares of scissors

10. 2o lezor blades

11. 2 littre of spirit

12. 10 littres of ant-bacterial solution (Detto)

13. 4 labourers

14. 5x12 m room

15. 40 news papers

16. Planting of seeds

17. spraying

18. removing of ruberband and continuing to spray

19. Germination of mushrooms

20. 5 pares of shorts and 5 short sleeved Tshirts.

21. Five pairs of gunboots.

22. One small car for marketing and supplies.

23. 1 kilogram of ant-rodents

24. 1 litter of ant-nematodes

25. Sum of money to pay a pre- and during production visiting extention officer consultant.

26. Harvesting

27. selling of harvested products

Sequence of activities

The network.

Project scale

As erabolated earlier, this project will aim at muximum production of 1000 per day at its best
performance. It targets markets as follows;
 • Hotels in Dar - Es - Salaam, Mwanza, Arusha, Zanzibar and Dodoma.

• Mini- and Supermarkets in same cities

• Retail shops in Dar - Es Salaam selling mushroom

• Mining sites in Mwanza, Shinyanga, Arusha, Tabora, Kagera etc.

• Religious centers eg TEC

• Industries, eg. Dangote in Mtwara and gase refinary plant in Lindi.

• University communities in Dar- Es - Salaam

• Individuals

Preliminary cost and benefit analysis

Management structure

Further work requirements