MAKING DRIED OYSTER MUSHROOMS BUSINESS IN UGANDA

 MAKING DRIED OYSTER MUSHROOMS BUSINESS IN UGANDA

Introduction

Mushrooms are a delicacy among members of society, therefore have a high demand. Areas of focus include restaurants, hotels, and supermarket chains.

Oyster mushrooms are a popular exotic mushroom. They have a delicate texture and just a hint of seafood in their flavor. Originally wild harvested, growing from the side of tree trunks, Oyster mushrooms are now widely cultivated. The total investment requirement is US $9,272per year, with revenue estimates of US$104,832 per year, with a net profit of 7% and a payback period of 9 months.

Production process

Mushrooms are very perishable and have to be processed to raise their shelf life. Mushrooms are dried (12% moisture) and this keeps away mosquitoes. Dried mushrooms can be stored for more than a year, but there is a change in their taste and flavor. Dried mushroom can be ground to make mushroom soup.A tunnel drier can be constructed from ordinary materials, and it uses less energy than most other driers. A tunnel drier gives a high quality product. Then mushrooms are packed in plastic or foil paper which protects and holds in moisture.

Capital Investment Requirements in US$

Capital investment item Units Qty @ Amount
Tunnel drier No. 1 272 272
Van No. 1 9,000 9,000
Total cost on machinery 9,272

Production and Operating Costs

Cost Item Units @/ day Qty/ day Pdn cost/ day Pdn cost/ month Pdn cost/yr
Fresh mushroom kg 2 50 100 2,600 31,200
Fire wood Tones 62 2 124 3,224 38,688
Plastic or foil papers No. 0.5 120 60 1,560 18,720
Sub-total 172 284 7,384 88,608

General costs (overheads)

Utilities(water and power) 20 240
Labour 150 1800
Rent 50 600
Miscellaneous costs 50 600
Distribution costs 260 3120
Depreciation(Asset write off) Expenses) 193 2,318
Sub -total 723 8,678
Total Operating Costs 8,107 97,286
  1. Production costs assumed 312 days per year with a daily capacity of 120 packets of dried oyster mushrooms
  2. Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets
  3. Direct costs include materials, supplies and other costs that directly go into production of the product.

Project Product Costs and Price in US $

Item Qty/day Qty/yr @ Pdn cost /yr UPx TR
Dried mushrooms 120 37,440 2.6 97,286 2.8 104,832

Profitably Analysis

Profitability Item Per day Per month Per Year
Revenue 336 8,736 104,832
Less operating Costs 312 8,107 97,286
Profit 24 629 7,546

Sources of raw materials and equipments

Raw materials and equipments are locally available

Government facilities and incentives

The government has set up incentives in a bid to boost agricultural activities.

 

1 Comments

  • Wish to start this business
    How can I start

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