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$104,832 per year, with a net profit of 7% and a payback period of 9 months.
Mushrooms are very perishable and have to be processed to raise their shelf life. Mushrooms are dried (12% moisture) and this keeps away mosquitoes. Dried mushrooms can be stored for more than a year, but there is a change in their taste and flavor. Dried mushroom can be ground to make mushroom soup.A tunnel drier can be constructed from ordinary materials, and it uses less energy than most other driers. A tunnel drier gives a high quality product. Then mushrooms are packed in plastic or foil paper which protects and holds in moisture.
Capital Investment Requirements in US$
|Capital investment item||Units||Qty||@||Amount|
|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|
|Plastic or foil papers||No.||0.5||120||60||1,560||18,720|
General costs (overheads)
|Utilities(water and power)||20||240|
|Depreciation(Asset write off) Expenses)||193||2,318|
|Total Operating Costs||8,107||97,286|
- Production costs assumed 312 days per year with a daily capacity of 120 packets of dried oyster mushrooms
- Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets
- 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|
|Profitability Item||Per day||Per month||Per Year|
|Less operating Costs||312||8,107||97,286|
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.