a complete business plan

Oyster Mushroom Farming

Table Of ContentsEXECUTIVE SUMMERY......................................................................................................3

WHAT IS MUSHROOM........................................................................................................5

OYSTER MUSHROOM......................................................................................................7

BOTONICAL DESCRIPTION...........................................................................................8

INTRODUCTION....................................................................................................................9

ORIGIN...............................................................................................................................11

MUSHROOM CUTIVATION REVIEW.........................................................................11

VISION STATEMENT.........................................................................................................12

MISSION STATEMENT......................................................................................................12

SLOGAN.................................................................................................................................13

OBJECTIVES........................................................................................................................14

MUSHROOM MARKET......................................................................................................15

OVERALL MUSHROOM MARKET.............................................................................16

OVERALL OYSTER MUSHROOM MARKET............................................................17

PAKISTAN MUSHROOM MARKET.............................................................................17

DEMAND AND SUPPLY......................................................................................................18

NUTRITIONAL INFORMATION......................................................................................19

SWOT ANALYSIS.................................................................................................................22

STRENGTH........................................................................................................................23

WEAKNESS.......................................................................................................................23

OPPORTUNITIES.............................................................................................................23

THREATS...........................................................................................................................23

OPERATIONAL FLOW.......................................................................................................24

CHART...................................................................................................................................24

ORGANIZATIONAL STRUCTURE..................................................................................35

TARGET MARKET..............................................................................................................37

MARKETING MIX...............................................................................................................38

PRODUCT..........................................................................................................................38

PRICE..................................................................................................................................39

University Of Central PunjabFaculty Of Management Studies PCBA-PICS


PLACE.................................................................................................................................40

PROMOTION.....................................................................................................................40

GAP ANALYSIS....................................................................................................................41

COMPETITORS ANALYSIS...............................................................................................42

Direct Competitors.............................................................................................................43

Indirect Competitors..........................................................................................................44

FINANCIALS.........................................................................................................................45

INITIAL CAPITAL INVESTMEMT...............................................................................46

PROJECTED INCOME STATEMENT..........................................................................47

BALANcE SHEET.............................................................................................................48

BREAK EVEN POINT......................................................................................................49

PAY BACK PERIOD.........................................................................................................49

MINUTES OF MEETINGS..................................................................................................50

BUSINESS CARDS................................................................................................................57

PICTURES..............................................................................................................................58

REFERENCES.......................................................................................................................60



EXECUTIVE SUMMERY

The project of Oyster mushroom farming is done by Mr. Sulman, Miss. Sana and Mr.

Umair and Mr. Jawad who are doing MBA from University of Central Punjab.During our

research on oyster mushroom farming in Pakistan we met and interviewed different people

and after thorough analysis of the market, business components and with our joint efforts and

courage we have devised a business plan under supervision of Professor Farooq Hussain.

The market research we conducted concludes that the people are still not much

familiar about fresh mushroom industry of Pakistan and there is a clear gap in demand and

supply, this makes the industry a very good opportunity for investment.

We will grow fresh mushrooms at our farm and supply it to pizza parlors of Lahore. We have

planned the business operations in terms of its components; operational flow chart with

detail, swot matrix, marketing mix and organizational plan. Our targeted customer belongs to

pizza makers and fast food industry.

For this, we visit Agriculture University and also visited some pizza parlors in

Lahore. We tried to understand their needs and also we note some other aspects like taste and

nutritional values. After overall analysis including the financials, we came to know that this

business is very successful as there is a huge profit margin instead of any other business. But

the major side is that there should be demand of mushrooms in the market. If it is not, then

our production is like wastage. So we should produce mushrooms according to demand in the

market.



Oyster Mushrooms Farming



WHAT IS MUSHROOM?



Mushrooms are considered as the fifth largest vegetable. A mushroom is a type of

fruiting body of a fungus. Fungi are organisms that are free of chlorophyll and therefore

cannot do process of Photosynthesis. Some fungi produce mushrooms for the purpose of

reproduction, releasing spores into the atmosphere. Fungi got their energy through

biochemical decomposition processes.

Mushrooms are type of fleshy plants that belong to the fungi group. They grow from

decaying materials and just like fungi, they don’t have chlorophyll. They usually grow in cool

and moist places. In pastures, meadows, and woodlands they are mostly found. At commercial

level they are cultivated in caves, indoors on shelves filled plant materials, and in greenhouses

where the average temperature is cool.

Mushrooms are in different colors such as white, orange, red, and brown. They also

differentiate in sizes and shapes. The most common mushrooms have short, thick stems and

umbrella like fleshy caps. Some mushrooms are poisonous. Mushrooms are cultivated as it is

used by humans mainly as a source of food. Aside from food aspect, these mushrooms also

have medicinal properties, because they contain lovastatin which is a substance used in

medicines for heart patients; Lovastatin lowers the cholesterol in the blood. Mushrooms are

richer in proteins than other green plants.

It contains minerals like iron, phosphorus, potassium, and calcium and is rich with

vitamins. It is also filled with fibers that help in digestion in humans. Thus, mushrooms are

considered as perfect food, and are also very popular around the world.



Mushroom industry is boosting in world as its consumers are increasing day by day.

According to the China Edible Fungus Association, their National Mushroom production in

2006 is about 1 4.37 million tons, that is more than 70% of world output. The demand for

mushrooms is relatively increasing strongly.

The future of many of the mushroom species is bright. Production of mushrooms

overall in the world has been increasing due to contributions from countries such as China,

India, and Vietnam. There is also much experimentally based evidence regarding the

nutritional and medicinal benefits related to mushrooms. In Africa, medicinal mushrooms

trials conducted for AIDS patients are also promoting the benefits of mushrooms.

OYSTER MUSHROOM

Oyster mushroom (Pleurotus sp.) is belonging to class Basidiomycetes and botany

family Agaricaceae. It is locally known as ‘Khumbi’ in Pakistan. It grows naturally on dead

and decaying wooden logs. It also grows on decaying organic matter. The fruiting body of

this mushroom is distinctly shell shaped. They appear with shades of white, cream, grey,

yellow, pink or light brown depending upon the type of species. It is one of the most suitable

fungal for producing protein rich food without the process of composting.



BOTONICAL DESCRIPTION

The oyster mushrooms have three parts.

1. A shell shaped cap.

2. A short or long central stalk.

3. Long ridges and furrows.



INTRODUCTION



Our project is basically the cultivation of the oyster mushrooms. Mushrooms are now-

a-days included in the fast food items such as pizza. Mushrooms are of various kinds like

buttons mushroom, oyster mushrooms and so on. But here our focus is basically on

cultivation of Oyster mushrooms. The reason behind choosing oyster mushroom cultivation is

its sensitivity level. Oyster mushrooms are less sensitive according to other kinds. If we want

to cultivate Button mushroom, then it should also be noticed that these are very sensitive to

temperature and other factors like humidity, light, moisture and so on.

Our major reason for choosing this project is the rising needs of fast food items in the

market. If we take an example of Lahore market, we came to know that now-a-days, there

were many pizza parlors and they are working across every market. And Mushrooms are the

needs of pizza. Mushrooms can add a taste to pizza and also they are enriched with many

vitamins and carbohydrates. The trend of people is changing day by day and in food market,

trend is highly shifted towards pizza.

In our topic, we are just cultivating the mushrooms and deliver them to the market. So

we are not going to use other methods like drying, packing and so on. We are just cultivating

the oyster mushrooms and sale them directly to the customers. So there are no intermediaries

involved and the channel of distribution is direct distribution.



ORIGIN

Cultivation of oyster mushroom was firstly initiated in 1917 in Germany by Flack on

experimental basis on tree stumps and wood logs. Cultivation of different varieties of oyster

mushroom was initiated in Pakistan in 1975 by Dr Muhammad Asif Ali. Commercial

cultivation began in mid nineties.

MUSHROOM CUTIVATION REVIEW

In the fresh form, about 45 percent of mushrooms produced are consumed only. The

other 55 percent is processed in the canned form. This percentage is because their fresh form

shelf life is very short. That’s why in world market, mushrooms are found in canned form.



VISION STATEMENT

To be market leader of fresh oyster mushrooms with low price and best quality.

MISSION STATEMENT

Our mission is to provide best quality of fresh oyster mushrooms to fast food

chain to achieve greater stakeholder value through satisfaction of customers

demands.



SLOGAN

Delicious And Healthy Are Only Mushrooms.



OBJECTIVES

To provide fresh mushrooms in the market with least price.

Introducing fresh mushrooms as an alternative of canned mushrooms.

Pioneer in fresh production market.

Aware about nutritional benefits of mushrooms.

Create new employment opportunities.



MUSHROOM MARKET

OVERALL MUSHROOM MARKET



There are 14,000 described species to be considered as mushrooms. The valuation of

overall world market for the mushroom industry in 2005 was over $45 billion. The

mushroom industry can be divided into three main categories

1. Edible mushrooms.

2. Medicinal mushroom products.

3. Wild mushrooms.

Holland and China are the world largest exporter of canned mushrooms with a market

share of about 68.5 percent. Moreover, France is another important exporter with contribution

of about 13.5 percent of the world exports.

OVERALL OYSTER MUSHROOM MARKET



PAKISTAN MUSHROOM MARKET

Mushrooms have earned 6.9 million dollars for exports by Pakistan in 2008 and they

are exported to France, Switzerland, Germany, UK and New Zealand. Mushrooms of

Pakistan earned good market price in international markets ($71 per kg) as it shows only

97,000 kg earned about 6.9 million dollars. Pakistani exports decreases due to only one

reason. The reason is that our market is not fulfilling the demands of international markets so

the consistency in production is not maintained.

DEMAND AND SUPPLY



Oyster mushroom is not as popular as white button mushroom in the domestic market.

For export market, some companies are cultivating it. Cultivation of oyster mushroom is

more profitable as compared to white button mushroom. The reason for this is the low capital

costs. The cultivation of oyster mushroom is very simple and economical where raw

materials and facilities required are easily available.

At present, Marketing of fresh oyster mushroom does not have any problem due to its

very low production on commercial basis. Generally, the international market for oyster

mushroom is very high as it is not meat by some producers. It should be more successful in

local market as demand is not so much and our production is also to that extent that it meets

up with the demand. So the demand and supply meet up in local market, not in international

markets.

NUTRITIONAL INFORMATION



Calorie Information

Calories 22.0 (92.1 kJ)

From Carbohydrate 11.1 (46.5 kJ)

From Fat 2.8 (11.7 kJ)

From Protein 8.1 (33.9 kJ)

Carbohydrates

Total Carbohydrate 3.3 g

Dietary Fiber 1.0 g

Sugars 1.7g

Fats & Fatty Acids

Total Fat 0.3g

Saturated Fat 0.0g

Monounsaturated Fat 0.0g

Polyunsaturated Fat 0.1g

Total Omega-6 fatty acids 139mg

Protein & Amino Acids

Protein 3.1 g



Minerals

Calcium 3.0 mg

Iron 0.5 mg

Phosphorus 86 mg

Sodium 5.0 mg

Zinc 0.5 mg

Copper 0.3 mg

Manganese 0.0 mg

Selenium 9.3 mg

Potassium 318 mg

Magnesium 9.0 mg

Vitamins

Vitamin A 0.0 IU

Vitamin C 2.1mg

Vitamin D 18 IU

Vitamin E (Alpha Tocopherol) 0.0 mg

Vitamin K 0.0 mcg

Thiamin 0.1 mg

Riboflavin 0.4 mg



Niacin 3.6 mg

Vitamin B6 0.1 mg

Folate 16.0mcg

Vitamin B12 0.0mcg

Nutritional COMPARISON OF DIFFERENT MUSHROOMS

Preparation Serving

Size

Carbohydrates Fiber

(g)

Fat

(g)

Energy

(kj)

Oyster Mushrooms 100g 6 2.5 0.5 155

Button Mushrooms - raw 100g 1.5 2.5 0.5 100

Mushrooms - canned 100g 1.5 3 0.5 65

Chinese Mushrooms - dried

& rehydrated

25g 4 0 0 60

Enoki Mushrooms - raw 100g 7 2.5 0.5 145

Shitake Mushrooms - dried 4 (15g) 11 1.5 0 185



SWOT ANALYSIS

STRENGTH

1. New idea in market.

2. People already have taste of mushroom.



3. A huge profit margin.

4. Raw material with lower cost.

5. Lesser initial investment.

6. Rising trend for fast food items.

7. Climatic conditions fit for mushroom production.

WEAKNESS

1. No specialist for mushroom farming.

2. Mushrooms are spoiled in 3 to 4 days.

OPPORTUNITIES

1. Decline in canned production in world market.

2. Adopt latest technology.

3. Raise the production to meet international market.

4. Hire a mushroom specialist to identify problems and resolve them.

5. Made delivery as early to avoid loss due to spoilage of product.

THREATS

1. Existing canned mushrooms market.

2. Risk of increasing demand being satisfied from competitors.

3. Government policies.

4. Risk of supply exceeding demand if markets not developed.



OPERATIONAL FLOW CHART



Cotton Waste arrangement

Care Takers Spawn Order Polythene Bags Order

Raw Material Arrival

Moisture Level

Temperature Regulation

Un cover bags after 2 weeks

Wetting

Growth Of 40 Days

Cut if flower is completed

Wait 5 days more

Cut Before Maturity

“C” Category“B” Category“A” Category

PACKING

DISPATCH

Accurate

Inaccurate

Filling of Bags

Spawn Spray

Cover the Bags

Precaution

Building acquisition



1. Building Acquisition

The building that is used for our project is the poultry control shed that is already

established in okara. The reason for choosing this building is that this control shed is now in

the premises of the city and the Environmental department is not issuing the license for that

building. So this control shed is vacant and we are using it as an alternative for mushroom

cultivation. The size of the control shed is appropriate for our project. Moreover, all the

equipments required are already available here. So we don’t need temperature regulator or

humidity controller.

2. Cotton Waste Arrangement:

The next step is to arrange the cotton waste which is our basic raw material. Cotton

waste is the medium on which the mushrooms are cultivated. Cotton waste is the most

suitable material because they provide better medium for mushroom growth and also they are

more economical than wheat straws. So we order in satluj cotton mill in okara for cotton

wastes. It is more economical to us because this cotton mill is close to our building so,

transportation cost is less.



3. Spawn Order:

Spawn are the seeds that are used for growing the mushrooms on the medium. Spawn

are sprayed on the surface of the cotton waste that further converts into mushrooms. We

should made order of spawn to University Of Agriculture Faisalabad where it is easily

available all the time. The cost for spawn is 500 per kg. So we should order spawn according

to our production requirements.

4. Polythene Bags Order:

Another major raw material for our mushroom farming is the polythene bags. These

are the bags in which cotton waste is covered and in which the medium for mushroom growth

is provided. These bags are easily available in the market and we should order these bags in

near market. These bags cost 100 per kg and there are about 250 bags in one kilogram. The

size of these bags should be 8 x 12.

5. Care Takers

These are the persons that are hired for the purpose of caring the mushrooms. They

are trained for the mushroom farming and they have complete know how about mushroom

cultivation and its cutting. So for our production, we should hire 2 persons for our farm that

continuously look after the farm and the mushrooms.



6. Raw material Arrival

After the ordering, all the raw materials including cotton waste, polythene bags and

spawn should reach the farm within two days. All these things were collected by the care

takers and it is their responsibility to look after all these materials. All these things were

initially placed in our building at one place.

7. Wetting and Moisture Level

This is the initial procedure in which the cotton waste is watered and leave for some

time. The basic purpose for this process is to create moisture in the cotton waste or our

medium which is an initial factor for mushroom growth. We should place cotton on floor and

leave for certain time. When adequate level of moisture is attained, we start filling this cotton

waste into polythene bags. The level for moisture is that you should fill it into bags when you

grip cotton into your hands and your hands feel slightly wet.

If the moisture level is adequate and suitable for the mushroom growth, then we

should packed these into the polythene bags. But in some cases, the moisture level is not

suitable and the cotton waste dry. In such situation, we should repeat all the procedure again

and then again try to attain the required moisture level.



8. Precautions

In this section, we should follow some precautionary measures for our farming. This

is done to kill some pests that affect growth and are present in the media. To avoid these

pests, we provide water steam to our media or maintain temperature of 58 to 60 degree

centigrade. On such temperature, we placed our media for 4 to 6 hours. During this time, all

the pests were killed.

9. Filling Of Bags

The bags are to be filled with the wet cotton waste. 8 x 12 bag should contain 1000

grams of wet cotton waste. The weight of wet cotton varies from size of the bag. If the size of

the bag is larger, then more cotton waste in wet form is filled into it. So we should fill wet

cotton according to our desired bag size.

10.Spawn Spray

The next step is to spray spawn on the medium. As we know that our medium is wet

and contains moisture. So we mix up the spawn into the bags with a certain quantity. The

suitable quantity for spawn is 1 to 1.5 percent of the weight of wet media. For example if the

weight of our wet polythene bag is 1000 grams, then we should mix 10 to 15 grams of spawn

into the bag.

11.Cover The Bags

The next step after the spawn spray is to cover the bags. The bags are covered in such

a way that their front opening is closed but there should be a passage for air. It is because the

growth phase of mushroom requires air along with moisture. If the bags are air tight, then the

spawn is unable to spread.



12.Temperature Regulation

The next step in our cultivation process is to maintain or regulate accurate

temperature for the mushroom growth. For the first three weeks, the temperature should

maintain at 16-25 degree centigrade. This is because the initial weeks of mushroom growth

are sensitive and requires adequate temperature level. After 4 weeks, the temperature should

be raised to 28-30 degree centigrade and this temperature helps in mushroom flower growth.

13.Un Cover Bags

After 2 weeks, the front of the bags was opened. This is done because the flower

should grow in the direction of open end. So it is necessary to open the bags after two weeks.

If the bags were not opened, then the mushrooms start spoiling inside the bag and such

mushrooms are unable to grow.

14.Growth

Then we left these bags for entire 40 days. The whole process of mushroom growth

takes 40 days. During these days, we should check regularly the temperature, humidity and

moisture level.



15.Cutting

The next step is the cutting process. After 40 days time period, the mushrooms are

able to cut. So the care taker cut these grown mushrooms with the help of a simple knife. Be

careful while cutting because these mushrooms have to grow again. So cut the mushrooms

from appropriate position.

16.Wait 5 days

But in some cases, the mushroom flower is not grown properly in 40 days. In such

cases, we should not cut these flowers and wait for maximum 5 more days to grow. During

these days, the mushroom grows its entire flower and attains a certain level to cut it off.

17.Maturity level

But mushroom flower also has a maturity level. This maturity means that the flower

of the mushroom should reach a certain level after which it starts crushing. Another thing that

includes in maturity is the color of the mushroom flower. When any mushroom flower

reaches at maturity stage, then the color changes to white or some time fade color also

represents the maturity level. So to avoid this, it is necessary to cut these flowers at proper

time.



18.Mushrooms Category

After cutting the mushroom, they were further segregated into 3 categories which are

(i) “A” Category. (ii) “B” Category. (iii) “C” Category.

“A” Category: The mushrooms included in this category are properly weighed and their

color is also good. Mostly the oyster mushrooms with light brown colour are included in this

category and the size of the flower is 5-7 inches.

“B” Category: The mushrooms included in this category are smaller in size than the A

category mushrooms. But some full size mushrooms were also included in this category due

to their color. The color of such mushrooms didn’t match the A category requirement and

thus they are included in this category.



“C” Category: The mushrooms included in this category are spoiled or these include the

mushrooms that attain their maturity level. These mushrooms are broken sometimes from

centre and hence are included in this category.

19.Packing

Then these mushrooms were packed in the polythene bags. But separate these

mushrooms according to their categories and also packed them according to that. Fill the

plastic bags according to size of the mushrooms.



20.Dispatch

Finally, the packed mushrooms were dispatched to our customers. We should use a

pickup van for our transportation method. All the orders were delivered to our customers

according to their needs.



Training manager Finance manager HR manager

General Manager

Marketing manager

Care takers

ORGANIZATIONAL STRUCTURE



Finance manager

Mr.Jawad is our finance manager and he is responsible for maintaining all the finances of our

business like balance sheet and income statement, cash inflow, cash outflow etc.

Hr manager

Miss Sana is our HR manager and she is responsible for recruitment, selection and other

human resource activities.

Marketing manager

Mr. Sulman is our Marketing manager and he is responsible for taking orders and search out

the market for fresh mushrooms. Moreover, all the marketing activities for our promotion is

handled by him.

Training Manager

Mr. umair is our technical manager. He got all the knowledge relating to production and

growth methods and he should also train care takers in work.

Caretakers

They are responsible for

Take care of raw material

Look after the growth

Help in cutting



TARGET MARKET

Basically we are focusing on the pizza parlors. So our major target market is the pizza

market or fast food market. In this regard, initially we are capturing only the Lahore market.

In Lahore city, we target all the fast food chain restaurants and pizza parlors. All these pizza

parlors are currently using the mushrooms in packed form. So we try to capture their attention

and force them to buy mushrooms from our company that is in fresh form. We focus them

because they are paying high cost for packed mushrooms and on the other hand we are

providing them mushrooms in fresh form which are very economical. So Lahore pizza and

fast food market is our basic target. After some time, we expand our operation to other larger

cities of Pakistan.



MARKETING MIX

In this phase, we have developed marketing mix in which all the 4 Ps were consistent.

These 4 Ps easily adopt any market changes. These Ps are

1. Product.

2. Price.

3. Place.

4. Promotion.

PRODUCT

We are going to sell our product which is mushrooms. After cutting, the mushrooms are

ready for before delivery, we segregate them into three categories.

“A” Category: The mushrooms included in this category are properly weighted and their

color is also good. Mostly the oyster mushrooms with light brown colour are included in this

category and the size of the flower is 5-7 inches.

“B” Category: The mushrooms included in this category are smaller in size than the A

category mushrooms. But some full size mushrooms were also included in this category due

to their color. The color of such mushrooms didn’t match the A category requirement and

thus they are included in this category.



“C” Category: The mushrooms included in this category are spoiled or these include the

mushrooms that attain their maturity level. These mushrooms are broken sometimes from

centre and hence are included in this category.

PRICE

As we are the pioneer of fresh oyster so we are basically price setter in the market. But to

compete in market and to capture higher market share, we set our prices at a level that are

affordable by our customers. As the price of canned mushroom is very high, so to capture

market, we reduce our price. Canned mushrooms are available in market at price of 800-1200

per kilogram depending upon the quality. So we set our prices according to our product

categories.

CATEGORY PRICE PER KILOGRAM

“A” Category 500

“B” Category 350

“C” Category 250



PLACE

Mushroom will be marketed locally through a free market system. As we know that

the main market of mushroom is pizza parlors, restaurants and shopping malls. But initially

we are targeting just the pizza parlors in our target market and the restaurant. This is because

the trend of fresh pan pizza is raising a lot. And customers we are targeting are used of dining

outside a lot. And in the next six months, we should also provide fresh mushrooms in big

shopping malls like Metro, Hyper Star.

PROMOTION

As we know that our customer is well aware of the taste of the mushrooms. To

introduce the nutritional aspect of mushroom, we use brochures for our promotion. Moreover,

we should also take part in food festivals to promote our product. As our target market is

Lahore pizza parlors, so we should also advertise locally using cable operators as our media

for advertisement.

But in future, we decide to launch cooking shows on MASALA TV to promote

mushrooms and our product at region or national level as we expand our business. The

cooking expert should cook dishes related to mushrooms and different pizza varieties.



GAP ANALYSIS

Products 2005 (000 kg) 2010 (000 kg)

Supply Demand Gap Supply Demand Gap

Fresh 300 1210 910 550 1875 1325

Canned 1200 1300 100 1750 1900 150

Analysis

In 2005 fresh oyster mushroom supply was 300 and demand was 1210 and in 2010

supply of fresh oyster mushroom is 550 and demand is 1875, the demand for fresh oyster

mushroom is increasing and it is producing only in the region of Karachi and Faisalabad but

its demand is increasing day by day.

In 2005 canned oyster mushroom supply was 1200 and demand was 1300 and in 2010

supply of canned oyster mushroom is 1750 and demand is 1900, the demand for canned

oyster mushroom is decreasing and it is producing in almost all big cities of Pakistan.



COMPETITORS ANALYSIS



DIRECT COMPETITORS

In Pakistani market, there is a big market of fast food items and it is growing day by day.

As the industry is growing, meanwhile its demand is also rising. So to fulfill this demand,

there are many companies in the market. So these are our direct competitors. But our target

market is Lahore and in Lahore there is no company that is providing fresh oyster

mushrooms. So we are pioneers in our market. Some companies are operating in Pakistan but

in other regions. Some of them are as follow

1. Kakar Trading Company.

2. Falcon Exports (pvt) Ltd.

3. Business Concepts (Pvt) Ltd.

4. PAK International Enterprises

5. A.T.M Industries Pvt Ltd.



INDIRECT COMPETITORS

As our target market is Lahore market, there is no producer of fresh oyster mushroom. All the

pizza parlors are using dry or canned mushrooms for their pizza. As we are pioneer in our

field, but canned mushroom producer companies already have a brand name and brand

image. So they are also our competitors but indirectly.



FINANCIALS



INITIAL CAPITAL INVESTMEMT

Products Cost

Purchase of raw material 300000

Building rent 25000

Iron Shelves 30000

Supplies (office and operation) 10000

Cutting equipment 5000

Utilities 30000

Generator 120000

Humidity controller 10000

TOTAL 530000



PROJECTED INCOME STATEMENTS

Particulars 2011 2012 2013

Sales 1440000 1800000 2400000

less: Cost of goods sold

Cotton Waste 44800 61600 80500

Spawn 24000 30000 37500

Plastic Bags 9600 12000 17500

Labor 224000 300000 375000

Total CGS 302400 403600 510500

Gross profit 1137600 1396400 1889500

Less: Operating expenses:

Administrative exp

Salaries

Electricity

Traveling

240000

120000

48000

264000

132000

50000

290400

144000

52000

Marketing exp

Advertisement

Telephone

120000

24000

100000

25000

100000

27000

Total Operating Expenses 552000 571000 613400

Earnings before income tax 585600 825400 1276100

Tax deduction: (5% on sales) 72000 90000 120000

Net income 513600 735400 1156100

BALANCE SHEET FOR THE YEAR 2011

Particulars Debit (Rs.) Credit (Rs.)



Current Assets:

Cash 1000000

Inventory (F/G, Material) 56800

Total Current Assets 1056800

Fixed Assets:

Land & Building (25000/month rent) 300,000

Machinery (30,000) 27000

Less: accumulated depreciation (30,000 @

10%=3000)

Total Fixed Assets 327000

TOTAL ASSETS 1383800

Current Liabilities:

Estimated income tax 72000

Total current Liabilities 72000

Stockholders’ Equity:

Common stock 776600

Retained earnings 535200

Total stockholders’ equity 1311800

TOTAL LIABILITIES &

STOCKHOLDERS EQUITY

1383800

BREAK EVEN POINT

=Total Fixed Cost/ (selling price per unit-variable cost per unit)



= 832800/ (500-5)

= 832800/495

= 1682 units

PAY BACK PERIOD

=Investment/Retained earnings

=1000000/535200

=1.87 years

=1 year, 10 months and 13 days



MINUTES OF MEETINGS

MINUTES OF MEETING

A Meeting was held with Dr. Muhammad Asif at his office dated on 10-03-2011, 13:00 Pm

regarding general know how about oyster and its feasibility in Pakistan. He is serving



Agriculture university faisalabad as professor for many years. He was the first person; who

start mushroom farming in Pakistan.

PARTICIPENTS:

Interviewers

-Mr. Sulman ashraf

-Miss Sana Khalid

-Mr. Umair shakeel

-Mr. Jawad bajwa

Interviewee

- Dr. Muhammad asif

We have discussed following issues regarding oyster mushroom farming.

His career in the oyster mushroom farming.

Brief introduction of the mushroom.

Discuss history and mushroom related Pakistani people’s perception.

Current practices about its oyster farming; demand and supply gap globally.

Physical feasibility of the mushroom in Pakistani environment.

MINUTES OF MEETING



A Meeting was held with Mr. Asim at his office dated on 19-03-2011, 21:00 pm regarding

general know how about oyster and its feasibility in Pakistan. He is serving pizza hut Lahore

as manager.

PARTICIPENTS:

Interviewers

-Mr. Sulman Ashraf

-Miss Sana Khalid

-Mr. Umair Shakeel

-Mr. Jawad bajwa

Interviewee

- Mr. Asim


Mushroom demand.

Mushrooms impact on taste.

Supply chain regarding mushroom.



MINUTES OF MEETING

A Meeting was held with Mr.Shehzad Aziz at his office dated on 20-03-2011, 11:00 Am

regarding general know how about oyster and its feasibility in Pakistan.

PARTICIPENTS:

Interviewers

-Mr. Sulman Ashraf

-Miss Sana Khalid

-Mr. Umair shakeel

-Mr. Jawad bajwa

Interviewee

- Mr.Shehzad Aziz


Growth mechanism of oyster mushroom.

Temperature requirement.

Atmosphere regulation regarding mushroom.



MINUTES OF MEETING

A Meeting was held with Mr. Faisal Iqbal at his office dated on 22-03-2011, 16:00 Pm

regarding general know how about oyster and its feasibility in Pakistan. He is serving al-

minaal as general manager for many years.

PARTICIPENTS:

Interviewers

-Mr. Sulman Ashraf

-Miss Sana Khalid

-Mr. Umair shakeel

-Mr. Jawad bajwa

Interviewee

- Mr. Faisal Iqbal


Mushroom demand.





MINUTES OF MEETING

A Meeting was held with Mr.Ali Aslam on call dated on 22-03-2011; 10:00 Am regarding

general know how about oyster and its feasibility in Pakistan. He is the owner of ATM

Company in Karachi.

PARTICIPENTS:

Interviewers

-Mr. Sulman Ashraf

-Miss Sana Khalid

-Mr. Umair shakeel

-Mr. Jawad bajwa

Interviewee

- Mr Raja Taimoor


Marketing opportunities of oyster mushroom.

Identify the gap between demand and supply of the mushroom.

Difference between fresh and canned mushroom market.



MINUTES OF MEETING

A Meeting was held with Mr. Ali Zulfiqar at his office dated on 19-03-2011, 21:00 pm

regarding general know how about oyster and its feasibility in Pakistan. He is serving Ringo

pizza Lahore as manager.

PARTICIPENTS:

Interviewers

-Mr. Sulman Ashraf

-Miss Sana Khalid

-Mr. Umair Shakeel

-Mr. Jawad bajwa

Interviewee

- Mr. Ali Zulfiqar


Mushroom demand.





BUSINESS CARDS



PICTURES



REFERENCES

1. http://www.mushroombusiness.com/content/articles/detail/232/

mushroom-economics-in-china

2. http://findarticles.com/p/articles/mi_m0WDP/is_2001_April_23/

ai_73597656/

3. http://www.iptu.co.uk/content/pakistan_clusters_food.asp

4. http://eng.hi138.com/?

i273845_Mushroom_industrys_sustainable_development_approach



5. http://www.pakissan.com/english/advisory/export.fruits.economy.shtml

6. http://www.begellhouse.com/journals/

708ae68d64b17c52,7c3e0ba845ba8869,077af3c034cb7b70.html


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