Project report for Mushroom Farm

Introduction

It is understood that right from the very same existence of human being the mushroom is used as eatable item. It is known as a plant without chlorophyll and meat in vegetables, and it is found in innumerable varieties, more than 2000 of varieties are included in the list of edible mushrooms. Climate is a main factor for the growth of mushrooms. To suit to the climate of India, Button Mushrooms, Oyster Mushroom, Milky Mushrooms etc are produced. Among them, the button mushroom is produced on commercial purpose. Besides, milky mushroom and pink mushroom are also produced in Kerala Climate.

Mushrooms are on the top in regard to taste, smell, proteins and medicinal qualities in food items. Mushroom is a perfect contains good quality proteins and a fair quantity of vitamins. It is a perfect food for the protection of heart and nervous systems. Mushroom is an ideal and perfect food for all irrespective of their age. It is an effective tonic for anaemia, especially for pregnant women and children.  Diabetic patients too can use mushrooms due to the low fat and starch content.

There for Mushroom can be considered as a ‘nutraceutical’ food, as it is a nutritional food and a medicine, and its production and marketing is included in this business plan.

Scope of the project

Demand of mushroom increases day by day, as the awareness of its benefits spreads among the educated. A mushroom farming business can be mean big profits in just a few weeks. Starting your own business growing oyster/milky mushrooms for profit is fairly easy.  Due to increased recognition of its medicinal and nutritional values, coupled with the realization of the income generating potential of fungi through trade, the demand for mushrooms has been on the rise. The edibility of mushrooms depends on the absence of poisonous content and its desirable taste and aroma. Being a rich source of nutrition and being fat-, cholesterol-, and gluten-free, and very low in sodium content; mushrooms are gaining popularity among health-conscious consumers. The global market for mushrooms was valued at $29,427.92 million in 2013. This market is projected to grow at a CAGR of 9.5% from 2014 to reach $50,034.12 million by 2019. Mushrooms have a great export potential also.

One can produce his/her own spawn using a sterile culture, or can buy ready-to-inoculate spawn, which are carried by suppliers. Producing your own can be cheaper in the long run, but the start-up costs can be high. As there is a huge gap between demand and supply of mushrooms, its demand will not diminish and hence, scope of the project is naturally high. The monsoon season is suitable for oyster mushroom, the summer is good for the Milky mushroom. Lots of training centres, both in public and private sectors provide training for cultivation of mushrooms and its value addition at affordable cost.

Product / Services & process

The proposed products are:  Spawn packets &  Mushrooms

Mushroom Spawn

Mushroom spawn is the seed of mushrooms. It is any substance inoculated with mycelium used to grow mushrooms. The substances may be sterilised paddy grains, wheat or maize. The spawn is usually packed in polythene cover and a packet weighs 200-250 gm and costs Rs.30/- -Rs.40/-.

Oyester Mushroom

Pleurotus ostreatus, the oyster mushroom, is a common edible mushroom. The mushroom has a broad, fan or oyster-shaped cap spanning 5–25 cm; natural specimens range from white to gray or tan to dark-brown; the margin is inrolled when young, and is smooth and often somewhat lobed or wavy. The flesh is white, firm, and varies in thickness due to stipe arrangement. The gills of the mushroom are white to cream, and descend on the stalk if present. It can be sold in retail and whole sale. Retail packets varies from 100gm to 500 gm. 200 gm packet is most popular.

Milky Mushroom

Milky mushrooms (Calocybe indica) are warm loving mushroom species suitable for the subtropical and tropical climate types. Milky mushroom, otherwise known as summer mushroom, is a long sized, white and attractive mushroom of India. It has some advantages over oyster mushroom as it is attractive in shape and colour. It is having long shelf life around one week, while the oyster mushroom usually perish after one day in normal temperature.

Process: Mushroom is the fruiting body of a fungus. The fungus need suitable substratum. Here the substratum is wet straw. The paddy straw, need to be disinfected by boiling or by chemical treatment. Spawn is the spores of the fungi, prepared using some substratum such as  paddy or maize. The wet straw is rolled to small round bundles and placed in a polythene bag. Spawn is to be spread in between such rolls and finally, the bag is pressed and tied at the top, called a ‘bed’.Such beds are kept in dark room for around 15 days till the substratum is fully covered by white fungi. Then it can be hanged to get sufficient air circulation and wetness. Within a few days, mushrooms will sprout from the pin holes made on the plastic cover of beds. When it matures, we can collect the fresh mushrooms. For the production of spawn, need mother culture, sterilized substratum as paddy and a lab. The promoter, already possess a lab with minimum production. Need some expansion for increasing production.

Raw materials / Consumables

1    Paddy
2    Paddy straw
3    Spawn
4    Calcium Carbonate
5    LPG for sterilisation
6    Mother spawn
7    Spawn for milky & oyester mushrooms
8    PP cover
9    Formalin
10    Bavestin
11    Packing cover
12    Compost for casing
13    Dettol, stapler, pin, twain etc

Plant & Machinery / Equipments

Many equipments and machinery are required for the spawn and mushroom production. They include cooler, humidifier, inoculation chamber etc.

Market potential & Strategy

Global mushroom market value is expected to exceed USD 50 billion in the next seven years due to growing mushroom demand in from the recent past. Mushrooms are considered good for health as they contain negligible sodium and gluten content. Low fat and cholesterol content is presumed to result in higher mushroom acceptance among consumers. Grouped under vegetables, mushroom contains various nutrients such as potassium, vitamin, and selenium.

Key mushroom products include shiitake, button, oyster, and others which contain paddy mushroom, milky mushroom, reishi mushroom, and winter mushrooms. Oyester and Milky mushrooms have a great domestic market. The market can be further segmented by its application which includes dried and processed categories. Demand for mushroom has risen considerably over the past years in processing industry. Processed mushroom comes in the commercial market as canned, dried, and frozen. Other than these categories processed mushroom also includes pickled mushroom, powder mushroom, and mushroom sauces.

Mushroom production can be used for medicinal purposes due to its vitamin B and vitamin D content as well as calcium, phosphorus, potassium, and magnesium and other such minerals content. Mushrooms are often called parasitic due to their dependence on other plants for food.

Marketing Strategy

The Oyester and Milky mushroom has very much demand in the domestic as well as export market. As the public are highly aware of the nutritional and medicinal value of mushrooms, they the rate of consumption has incredibly increased. The availability is the only problem. The promoter has clear idea strategy to market the products through the following means:

1. Distribute in all vegetable shops in 200 gm packets

2. Distribute in super markets in attractive packets

3. Sale in government offices and schools

4. Sale through online web portals

5. Sale through exhibitions

The spawn can be sold to the small scale mushroom cultivators in the district. Quality spawn have always a demand in the market.