MAKING DRIED OYSTER MUSHROOMS
Introduction
The business idea is for the production and marketing of dried oyster
mushrooms. 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. Oyster mushrooms are perfect in fish chowder or in a sauce for meat
or poultry. The total investment requirement is US $66,329 per year, with
revenue estimates of US$ 392 per year.
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.
Market Analysis
Mushrooms are a delicacy among almost all members of society and therefore have
a ready market. Areas of focus include Restaurants, Hotels, and Supermarket
Chains. This industry has attracted many key players especially Women groups.
Capital Investment Requirements in US$
|
item |
Units |
Qty |
Unit cost |
Amount |
|
Tunnel drier |
No. |
1 |
250 |
250 |
|
Van |
No. |
1 |
5,000 |
5,000 |
|
Total cost on machinery |
5,250 |
Production and Operating Costs in US$
|
Cost Item |
Unit |
Unit |
Qty/ |
Prod |
Prod cost/month |
Prod |
|
Fresh |
kg |
1.0 |
50 |
50 |
1,300 |
15,600 |
|
Fire wood |
Tone |
60 |
2 |
120 |
3,120 |
37,440 |
|
No. |
0.2 |
120 |
18 |
468 |
5,616 |
|
|
Sub-total |
172 |
188 |
4,888 |
58,656 |
||
|
General costs (overheads) |
||||||
|
Utilities(water and power) |
20 |
240 |
||||
|
Labour |
150 |
1,800 |
||||
|
Rent |
50 |
600 |
||||
|
Miscellaneous costs |
50 |
600 |
||||
|
Distribution costs |
260 |
3,120 |
||||
|
Depreciation(Asset write off)Expenses) |
109 |
1,313 |
||||
|
Sub -total |
639 |
7,673 |
||||
|
Total Operating Costs |
5,527 |
66,329 |
Plastic or foil papers 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 |
Unit Cost |
Prod cost /yr |
Unit |
Total |
|
Dried |
120 |
37,440 |
1.77 |
66,329 |
1.8 |
67,392 |
Profitably Analysis
|
Profitability Item |
Per day |
Per month |
Per Year |
|
Revenue |
216 |
5,616 |
67,392 |
|
Less production and operating Costs |
213 |
5,527 |
66,329 |
|
Profit |
3 |
89 |
1,064 |