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 popular exotic mushrooms. They have a delicate texture and just a hint of seafood in their flavour. Originally wild-harvested, growing from the side of tree trunks, Oyster mushrooms are now widely cultivated. The total investment requirement is NGN 10,536,000 per year, with revenue estimates of NGN 56,160,000 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 (CBN exchange rate -$1 to 415.27 NGN) as of 2nd July 2022.
| Capital investment item | Units | Qty | Cost in
NGN |
Cost in USD | |
| Tunnel Drier | No. | 1 | 120,000 | 288.969 | |
| Total cost of machinery | 120,000 | 288.969 | |||
Production and Operating Costs
| Cost Item | Units | @
NGN |
Qty/
day |
Pdn cost/ month in NGN | Pdn cost/ year
In NGN |
Pdn cost/ year
In USD |
| Fresh Mushroom | kgs | 30,000 | 50 | 780,000 | 9,360,000 | 22,539.553 |
| Firewood | Tonnes | 2000 | 2 | 52,000 | 624,000 | 1,502.637 |
| Foil paper | No. | 1000 | 1 | 26,000 | 312,000 | 751.318 |
| Sub-total | 33,000 | 858,000 | 10,296,000 | 24,793.5078 |
General costs (overheads)
| Cost Per Month
NGN |
Cost Per Year
NGN |
Cost Per Year
USD |
|
| Utilities(water and power) | 3,000 | 36,000 | 86.749 |
| Labour | 10,000 | 120,000 | 289.164 |
| Rent | 2,000 | 24,000 | 57.833 |
| Fuel | 5,000 | 60,000 | 144.582 |
| Sub –total | 20,000 | 240,000 | 578.327 |
| Total Operating Costs | 878,000 | 10,536,000 | 25,371.445 |
- Production is assumed for 312 days per year.
- Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
- A production Month is assumed to have 26 days.
Project product costs and Price structure
| Item | Qty /day | Qty/yr | @ | Pdn cost /yr
NGN |
Pdn cost /yr
USD |
TR
In NGN |
TR
In USD |
| Dried mushrooms | 120 | 37,440 | 1500 | 10,536,000 | 25,371.445 | 56,160,000 | 135,237.315 |
Profitability Analysis
| Profitability Item | Per day | Per month | Per Year
NGN |
Per Year
USD |
| Revenue | 180,000 | 4,680,000 | 56,160,000 | 135,237.315 |
| Less production and operating Costs | 33,000 | 878,000 | 10,536,000 | 25,371.445 |
| Profit | 147,000 | 3,802,000 | 45,624,000 | 109,865.87 |
Sources of raw materials and equipment
Raw materials and equipment are locally available.
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