1

i

Preface
This project is established for study feasibility of shiitake mushroom cultivation. This project analyzes data from the real situation for investor who would like to invest shiitake mushroom cultivation in this area. First of all, this project is evaluating product profile, market feasibility, technical feasibility and financial analysis for investor will get maximum profit, ensure to investor and understand problem will occur in the future. However, this project describes many factors that impute the foundation for a successful project, actions to take during project initiation.

The objective of this project was to provide the project feasibility of shiitake mushroom cultivation, study the market and trends of shiitake mushroom cultivate industry, and calculate financial factors of this business. In addition, the benefit of this project is for knowing feasibility of this project and financial for proceeding this business. Also, the situation and the trends of shiitake mushroom cultivate industry is needed of customer and market.

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Table of content
Preface Table content List figures List of Tables Exclusive Summary i ii v v vi

Chapter 1: Introduction 1.1. Background and significance of the project 1.2. Project Objective 1.3. Benefits of project 1.4. Operation Methods 1.5. Time frame of study Chapter 2: Industry Profile 2.1. Nature of Industry 2.2. Situation of Industry 2.3. Product 2.4. Vision of your Organization 2.5. Mission 2.6. Strategy 2.6.1 Corporate Level 2.6.2 Business Level 2.6.3 Function Level Chapter3: Market Feasibility Study 3.1 Market Analysis 3.1.1. General Environment Analysis 3.1.2 Competition Analysis 3.1.2.1. Competitor Analysis 3.1.2.2.Customer Analysis 3.1.2.3. Competitive Analysis

1 1 3 3 4 5 6 7 8 13 14 15 15 15 16 16 19 20 20 20 20 21 22 23 23

3.2 STP Analysis 3.2.1 Segmentation

iii 3.2.2 Targeting 3.2.3 Positioning 26 28 29 32 35 38 41 Chapter 4: Technical Feasibility Study 4.1 Production and Operation Analysis 4.1.1 Product Characteristics 4.1.2 Product Process 4.1.3 Services Process 4.1.4 Location 4.1.5 Farm Layout 4.1.6. Logistics Management 4.1.7. Organization management 4.1.8. Machine/Tools/ Equipments 4.2 Investment cost 4.3. Operating Cost 4.3.1. Raw material Cost 4.3.2. Direct labor cost 4.3.3. Utility expense cost 4.3.4. Rental fee 4.4. Organization Cost 4.4 Conclusion Chapter 5: Financial Analysis 5.1 Income Statement 5.2 Cash Flow 5.3 Balance Sheet 5.4 Project Analysis 5.5 Conclusion 42 43 43 64 73 76 77 78 78 80 88 92 92 93 93 93 94 96 97 98 105 111 114 115

3.3. Marketing Mix Strategy 3.4. Sales Forecast 3.5 Profit Estimation 3.6. Marketing Expenses 3.7. Conclusion

Chapter 6: Summary

116

iv Summary Bibliography 117 118

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List of Figures
Figure 1: Segmentation of house shiitake mushroom Figure 2: Segmentation of the fresh market Figure 3: Segmentation of conservation market Figure 4: Targeting of house shiitake mushroom Figure 5: Targeting of Fresh market Figure 6: Positioning of house shiitake mushroom Figure 7: Shop Location Figure 8: Example of location of our company Figure 9: Example of farm layout 23 24 25 26 27 28 76 76 77

List of Tables
Table: 1 Time frame, since April - May 2010 Table 2: Production and value estimate of each mushroom kind in Thailand on 2544/2545 9 5

Table 3: Amount and value the mushroom export of Thailand in b.e. 2539-2543 10 Table 4: Amount and value the mushroom import of Thailand in b.e. 2539-2543 10 Table 5: Price of fresh mushroom in Thailand (grade mix) Table 6: Cost and reward estimate in production the mushroom bag. Table 7: Three years - Sale forecast Table 8: Three years - Profit Estimation Table 9: Third Years - Marketing Expenses Table 10: Machine/Tools/ Equipments Table 11: Investment cost Table 12: Depreciation Table 13: Raw material Cost Table 14: Direct labor cost Table 15: Utility expense cost Table 16: Organization Cost Table 17: Three year - Income Statement Table 18: Three year - Cash flow Table 19: Three year - Balance sheet 11 12 33 36 39 80 88 90 92 93 94 95 98 105 111

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Exclusive Summary
Shiitake mushroom cultivate Project is to study the feasibility for opening company. Shiitake mushroom cultivate is chosen because Market in Chaing rai or Thailand less fresh shiitake mushroom to consume and import it from China which they use chemicals for still fresh of product. The present, fresh shiitake mushroom not enough to customer want in Thailand. Shiitake house company position is to differentiate from other company by providing a higher level of service to customers and the high quality of products. The company’s vision is to create the best relationships with customer by providing best services and products. We will have a training course to train our employee before providing service to customer and use differentiate service to attract customer. We will have club to be a center of agricultural knowledge which customers could come to share the knowledge for improving efficiently their farm. We will provide after sale service to respond market need. For environment analysis, in social dimension, the market in Chiang Rai want fresh shiitake mushroom and it is not enough to customer demand. In economic dimension, the demand of fresh shiitake mushroom is very stable because it is benefit to healthy and disease preserve but the price may increase because gasoline price in increase it make sawdust product is increase too which must high investment. In political dimension, at the present, government is strongly supporting agriculture. Analyzing the competitors, we have studied the shiitake mushroom farm in the area, there are five main competitors. Boon Rod, Mae Sai and Vieng Pa Pao are three big farm that have been running for a long time with big customer base and Par Or Daon Chai and Ban Doo are small size farm which less product. According to survey the market and customer demand, the main competition in shiitake mushroom farm is price fits quality. Price is factor that customers are going to concern first before make a decision buying so our company concern to price fit with quality and service for customer satisfaction. In addition, shiitake house company try to catch a customer by competition on providing information of product, help them to solve their problems. It is good to make a relationship with customer.

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2 1.1. Background and significance of the project

Mushroom cultivate in Thailand regard as increase important whole occupation and important in side of consume. At present Mushroom cultivates is respectively increase with product in year 2544/2545 prefigure about 121,900 ton and 5,446 million baths which cause circulate economic not lower than 12,000 million baths. In order that, because increase populations then want the protein food that high benefit, low fat and free from chemicals. Therefore the market high demand both domestic and foreign. Thailand the mushroom export 200 million baths times a year. According to resulted of the research report in topic of production and marketing situation analysis from department of agriculture promotion. Shiitake mushroom can good grow in cold and high humidity locality. The market want a lot of shiitake mushroom and consume is not enough inside our country. The northern part and loei province can cultivate a lot of shiitake mushroom. From produce quantity and shiitake mushroom value statistic of Thailand in year 2544/2545is 3,000 tons and mushroom product percent in Thailand is 2.5 percent and average price is 100 baht per kilogram. Shiitake mushroom is

worldwide know it is cultivate level 3 of worldwide so inferior from Button mushroom and Straw mushroom. Majority regard as is food of the rich because expensive but as a matter of fact the shiitake mushroom is delicious, individual fragrance, consist of nutrient that be benefit to customer that other mushroom be no such as vitamin D and mineral etc. and consist of properties about medicine, It can heart disease and cancer protect by get the confirm in scientific already. According to researched between national cancer institution of Japan and university in South Carolina from USA. The past, who consume the shiitake mushroom in Thailand be admire the dry shiitake mushroom consume because it is case that cannot select and no fresh shiitake mushroom for select but after success of gene development and cultivate procedure in Thailand until able to cultivate the shiitake mushroom all the year round. Therefore customer behavior changes to admire in taste of more fresh shiitake mushroom. A lot of Fresh shiitake mushroom market in Thailand that the present the produce quantity insufficient by observe from market that sale fresh shiitake mushroom usually import from China which decrease the fresh test because keep a long time and irradiate or use chemicals for grow restrain of cap which maybe

3 be negative of consumer. According to mushroom cultivate tutor center from Ivitdom co., ltd. So this project I will produce the fresh shiitake mushroom to customer that health take care, can confident in chemicals free and sufficiency to customer and market demand. My brand calls “shiitake house”. I choose this name because it is easy to memory and call. I got this name idea by concern to people then use “shiitake house” for people to know that my company likes their house that always love and take care. I have shiitake mushroom farm at amphur maekorn that have appropriate geography for cultivate.

1.2 Project Objective

- Decrease the shiitake mushroom import from foreign because Thailand has shiitake mushroom export in format of fresh shiitake mushroom and dry shiitake mushroom but rate of import value more than export value over 10 million baht. - Shiitake mushroom quantity enough with customer and trader demand in Thailand market. - For Chiang Rai people has fresh shiitake mushroom to consume all season.

1.3 Benefits of this project

- To learn about shiitake mushroom cultivate business situation. - To learn about market, geography and climate of shiitake mushroom cultivate business. - To study in term of project feasibility of this business. - To study about the risk of this business. - To study about the management of shiitake mushroom cultivate. - To study Operation process and organize human resource in company.

4 1.4. Operation Methods

1. Survey the market feasibility detail and customer demand. 2. Survey the geography or area to do business. 3. Study the cultivate procedure both theory and perform. 4. Survey the market by using questionnaires. 5. Study and plan organization management in details as following:      Background of shiitake mushroom. The legal of Thailand which related my products such as about open business. Products and other services that related with my shop. Plan vision, mission, and strategy of my company. Create strategy in 3 level

6. Human resource management by provide employees or experienced person that able to perform in organization of each side follow executive and management way principle 7. Do the marketing analysis:            Customer demand of shiitake mushroom. Analyze general environment in business (ex. political, economy, social, and environment) Survey competitor around there Analyze competition (3C analysis) Do marketing plan to promote my products. Analyze STP( segment target positioning ) Create marketing mix strategy Estimate marketing expenses

8. Study and analyze the technical feasibility process: Location Company’s investment cost, operation expense, and other expenses. Analyze operations and management

9. To do financial analyze in 3 years. (Balance sheet, cash flow, and profit-loss statement in monthly) 10.To Summary the feasibility of shiitake mushroom business in Chiangrai.

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1.5 Time frame of study Table: 1 Time frames, since April - May 2010 April Operations Methods Week 1 1. Survey the market feasibility detail and customer demand. 2. Survey the geography or area to do business. 3. Study the cultivate procedure both theory and perform. 4. Survey the market by ask wholesaler about order form and use the result to know customer demand. 5. Study and plan organization management in details 6. Human resource management 7. Do the marketing analysis 8. Study and analyze the technical feasibility process 9. To do financial analyze in 3 years. 10. To Summary the feasibility of shiitake mushroom business in Chiangrai. Week 2 Week 3 Week 4 May Week 1 Week 2 Week 3 Week 4

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7 2.1. Nature of industry

The Shiitake (Lentinula edodes) is an edible mushroom native to East Asia, which is cultivated and consumed in many Asian countries, as well as being dried and exported to many countries around the world. It is a feature of many Asian cuisines including Chinese, Japanese, Korean and Thai. In the East, the shiitake mushroom has long been considered a delicacy as well as a medicinal mushroom. It is generally known in the English-speaking world by its Japanese name, shiitake. (kanji: 椎茸; literally "shii mushroom", from "shii" the Japanese name of the tree Castanopsis cuspidata that provides the dead logs on which it is typically cultivated). In Chinese, it is called xiānggū (香菇, literally "fragrant mushroom"). Two Chinese variant names for high grades of shiitake are dōnggū (Chinese: 冬菇, "winter mushroom") and huāgū (花菇, "flower mushroom", which has a flower-like cracking pattern on the mushroom's upper surface); both are produced at colder temperatures. Other names by which the mushroom is known in English include Chinese black mushroom and black forest mushroom. In Korean it is called pyogo (hangul: 표고; hanja: 瓢菰), in Thai they are called hed hom (เห็ดหอม, "fragrant mushroom"), and in Vietnamese they are called nấm hương ("fragrant mushroom"). The species was formerly known as Lentinus edodes and Agaricus edodes. The latter name was first applied by the English botanist Miles Joseph Berkeley in 1878. Shiitake are native to China but have been grown in both Japan and China since prehistoric times. They have been cultivated for over 1,000 years; the first written record of shiitake cultivation can be traced to Wu Sang Guang, born during the Song Dynasty (AD 960–1127). However, some documents record the uncultivated mushroom being eaten as early as AD 199. During the Ming Dynasty (AD 1368–1644), physician Wu Juei wrote that the mushroom could be used not only as a food but as a medicinal mushroom, taken as a remedy for upper respiratory diseases, poor blood circulation, liver trouble, exhaustion and weakness, and to boost qi, or life energy. It was also believed to prevent premature aging. The Japanese cultivated the mushroom by cutting shii trees with axes and placing the logs by trees that were already growing shiitake or contained shiitake spores. Before 1982, the Japanese variety of these mushrooms could only be grown in traditional locations using ancient methods. In the late 1970s, Gary F. Leatham published a doctoral

8 thesis based on his research on the budding and growth of the Japan Islands variety; the work helped make commercial cultivation possible worldwide, and Dr. Leatham is known in the industry as the "father of shiitake farming in the USA." In the United States, shiitake cultivation got off to a slow start, due to the USDA confusing the mushroom with an invasive species known as Lentinus lepideus. The USDA realized their mistake in 1972 and allowed importation and cultivation.

2.2. Situation of industry
Global production of mushrooms The world productions for mushrooms each year valued 4.27 million tons and most widely produced are button mushrooms or Champignon (Agricus bisporus) accounted for 38% of the total productions and are cultivated in Europe, North America, China and Australia. Second widely produced mushrooms are oyster mushrooms (Pleurotus sp.) accounted for 25% and straw mushrooms (Volvariella volvacea) will be cultivated widely in south east Asia i.e. China, Taiwan, Thailand, Indonesia accounted for 16% of world production, Shitake (Lentinus edodes) will be extensively cultivated on a log in Japan, China and South Korean and the countries that are commonly in growing mushrooms to export worldwide are China France Netherlands United States of America and Japan. Chiang Rai has 1,255,387 populations, GPP for the year 2006 is 50,093 million baht, increased from the last year by 9.38%, and revenue per person is 38,332 baht per year. Main business is agriculture (31.03%), followed by whole seller and retailer (18.76%), industry (3.98%), construction (3.81%), hotel and restaurant (2.72%), respectively. So my company has many competitors about agriculture. The province’s trading system depends on international trading. The most important trading partner for Chiang Rai is China, followed by Myanmar and Laos. Main export products. Mushroom growing in Thailand From the report of Chanyuth (b.e.2544) informs that B.E. 2544/2545 predicted the productions of mushrooms would meet 121,900 tons, accounted for 5,446 million

9 baht caused a new business cycle i.e. mushrooms manufacturing, tools for running mushrooms growing and conserve business which expects to meet 12,000 million baht (table 1). Table 2: Production and value estimate of each mushroom kind in Thailand on 2544/2545 Product Kind of mushroom ton (%) Average price (baht/kg.) Straw mushroom Oyster mushroom Tree ear Shiitake mushroom Agaricus blazei Murrill Other Total 84,000 15,000 14,000 3,000 900 5,000 121,900 (68.9) (12.3) (11.5) (2.5) (0.7) (4.1) 45 20 20 100 40 150 Value (million baht) 3,780 300 280 300 36 450 5,446

According to department of agricultural extension, 2544 For the export production in b.e. 2543 of the total 3,153 tons accounted for 192.9 million baht and other exporting areas could not be statistically collected via the borders, estimated the exporting mushroom productions found the possibility to increase the volume of mushroom productions, therefore information about mushrooms of the country should be declared to export to neighbor countries such as Singapore Malaysia and Brunei, as these countries are potentially high in demand (table2).

10 Table 3: Amount and value the mushroom export of Thailand in b.e. 2539-2543 Amount: Ton Value: Million baht 2539 amount value 54 10.4 2540 amount value 45 7.1 2541 amount value 38 9.4 2542 amount value 113 12.5 2543 amount value 39 8.9

List Dry mushroom Fresh mushroom Can mushroom Total

46

6.0

78

10..9

96

14.1

145

19.7

-

-

4,577 4,677

188.4 204.8

3,452 3,575

182.2 200.2

3,082 3,216

211.8 235.3

3,138 3,396

224.3 256.5

3,114 3,153

184 192.9

The recent years the mushrooms were imported approximately 888 tons accounted for 86.3 million baht some visitors might bring mushrooms via the borders as a gift from the trip but the estimated of importing dried shitake and snow ear mushrooms are more than 500 million baht per annual year (table 3). Table 4: Amount and value the mushroom import of Thailand in b.e. 2539-2543 Amount: Ton Value: Million baht

List
Dry mushroom Fresh mushroom Can mushroom Total

2539 amount

value

2540 amount

value

2541 amount

value

2542 amount

value

2543 amount

value

416 868 1,284

75.3 65.9 141.2

296 835 1,131

48.2 63.7 111.9

137.3 45.9 770.7 953.9

14.5 2.1 704 87

180 828 1,008

15.4 68.8 84.2

427 461 888

35.4 50.9 86.3

11 For the estimated price of fresh mushrooms comes to 80 baht per kilo for button mushrooms and shitake mushrooms is 120 baht per kilo, oyster mushrooms are widely consumed is 60 baht per kilo (table 4) Table 5: Price of fresh mushroom in Thailand (grade mix) Price (baht/kg.) wholesale 45-50 15-18 25 80-90 20 700-800 50 40 25-30 60

Kind of mushroom Straw mushroom Sajor caju Analone mushroom Shiitake mushroom Tree ear Ganoderma Schizophylum Mushroom Panus polychrous Hetmamuon Tricholoma Mushroom

retail 80 60 70 120 50-60 1,000 80 80 50 100-200

According to department of agricultural extension, 2544 Types of mushrooms cultivation in Thailand can be categorized 3 types 1. To produce mushrooms in plastic bags need sawdust mainly to grow mushrooms such as oyster mushrooms, shitake mushrooms and black wood mushrooms. 2. To grow mushrooms on a specific substance we use fermented straw or fertilizer such as cultivating a short stack of button mushrooms, cultivating button mushrooms and straw mushrooms in a house. 3. Cultivating mushrooms on a log by making a hole on a log and put a spawn on ,this is commonly used in cultivating shiitake mushrooms. The cost of production and income in Thai mushrooms markets The common price of mushrooms made in plastic bags cost 2.50 baht per one bag and can produce 200-300 grams per one bag. If the production reaches 200 kilograms for 1,000 bags and sell out for 15 baht per one kilo will gain benefit at 2.50 baht per one kilo and if the production could reach to 300 kilograms for 1000 mushrooms and black wood

12 bags, the distribute price will be 10 baht which benefits 1.67 baht per one kilo.(Table 5) Table 6: Cost and reward estimate in production the mushroom bag.

Benefit baht/kg. Product Cost Profit[+]/lose[-] from sale price [Kg./1,000 [Baht/kg.] unit] 10 15 18 20 baht/kg baht/kg baht/kg baht/kg 100 25.00 -15.00 -10.00 -7.00 -5.00 150 16.67 -6.67 -1.67 +1.33 +3.33 200 12.50 -2.5 +2.50 +5.50 +7.50 250 10.00 +5.00 +8.00 +10.00 300 8.35 +1.67 +6.67 +9.67 +11.67

25 baht/kg +8.33 +12.50 +15.00 +16.67

40 baht/kg +15.00 +23.33 +28.50 +30.00 +31.67

50 baht/kg +25.00 +33.33 +38.50 +40.00 +41.67

According to department of agricultural extension, 2544 (From calculate) We can increase the benefits of growing mushrooms in actions by 1. Reduce the cost of production to 2 baht for one bag. 2. Induce the production to 300-350 grams/bag by balancing the temperature moderately will makes the mushrooms grow continuously including to always keep the place of growing mushrooms clean. 3. form a highly distribution price by gathering groups of mushrooms distributors make an agreement to balance the price at 15 baht/kilo by making a further contact to always keep the standardize of the mushroom quality per bag to meet expectation and stabilize the weight at 100-200 grams per bag. This will increase the benefit of sales to 40-50 baht/kilogram. According to, development of the national the economy and society

committee B.E. 2542 - 2551, Thailand still need shiitake mushrooms market in a reasonable price since the annual market shares are increasing every year, therefore the market share will depend on the increasing of population as the market share grow, population will crease

13 2.3 Product (General)

Fresh shiitake mushroom

Mushroom refers to the conspicuous umbrella-shaped fruiting body (sporophore) of certain fungi, typically of the order Agaricales in the class Basidiomycetes but also of some other groups. Popularly, the term mushroom is used to identify the edible sporophores. Umbrella-shaped sporophores are found chiefly in the agaric family (Agaricaceae), members of which bear thin, bladelike gills on the undersurface of the cap from which the spores are shed. The sporophore of an agaric consists of a cap and stalk. The sporophore emerges from an extensive underground network of threadlike strands. An example of an agaric is the honey mushroom (Armillaria mellea). Mushroom may live hundreds of years or die in a few months, depending on the available food supply. As long as nourishment is available and temperature and moisture are suitable, a mushroom will produce a new crop of sporophores each year during its fruiting season. Mushrooms are truly unique organisms. Their full potential in recycling agricultural wastes and tree stump decomposing has yet to be taken advantage. Some mushrooms like the Shiitake even boast cancer fighting properties. Oyster, Button Mushrooms (Portabello), the Paddy Straw mushroom, and Shaggy Manes can even be grown on pasteurized straw making their cultivation very cost effective considering straw is very inexpensive. Food shortages can be improved by imploring this method of cultivation in impoverished countries. Mycology, the study of fungi, is a division of Microbiology where scientists study the interaction of mushrooms,

14 the environment and human uses. Most mushrooms reproduce asexually by releasing thousands of spores through their gills into the open air for dispersion into the environment. Every spore is capable of germinating to create a new hypha. Hyphae are masses of intertwined filaments of cells which are the morphological unit of the fungus. When a thick mass of hyphae forms it is called mycelium or mycelia. Mushroom mycelium is usually white in color with a rough, cottony texture. Root like growth is called rhizomorphic. When spores germinate they consume the water and nutrients from their environment and begin to reproduce. The medium that mushroom mycelium grows on is usually called substrate. Before the mushroom can start to form fruit bodies the mycelium colonizes the substrate fully and when the environmental conditions are right the mushroom emerges to produce more spores. A mushroom cultivator can take advantage of the rapid growth mushroom mycelium exhibits by introducing it into new, sterile substrates. The mycelium is so tenacious that a 10 cc culture syringe can inoculate 10 quart jars of rye substrate, the preferred medium of most cultivators, and those in turn can be multiplied up to 10,000 times their weight. As mentioned, the true potential of mushrooms has yet to be taken advantage of. Mushroom cultures can be stored for prolonged periods of time to preserve the unique strains that mushrooms produce. Some strains are desired for their rapid growth, resistance to disease and other characteristics.

2.4. Vision of your Organization

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Reasonable price at expected quality. Promotions are available for massive orders. Deliver to the place and lower charge of fees. Advance order is available. The products are fresh and new without chemical contaminant. The products are guaranteed on packaging and qualified by ministry of product and production standard.

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Experts are hired to care for the product.

15 2.5. Mission

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There are fresh shiitake mushrooms for consume all season. We try to make loyalty and word of mouth in group customer. To decrease the import of fresh shiitake from china that they put chemicals for fresh still.

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For customer consume fresh shiitake mushroom that no chemicals and clear of contaminant.

2.6. Strategy

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2.6.1. Corporate Level

I decide to use two strategies that will help my company by use Concentric Diversification Strategy and Market Penetration Strategy. I think it could push the company to be success in market. There are two reason that why I use those strategy to compete with competitors. 1. I use Concentric Strategy to make our company differentiate with competitors in term of service and product. 2. I am a new farm on the market and any competitors have their own customer already so Market Penetration is the answer to get customer know us by using communications mix and gain market share from competitors. The concentric diversification strategy that my company use, because we need to provide quality of products to customer .We plan to have consulting service to serve and suggest information in order to farm who has problem about their shiitake mushroom farm and teach to keep the product for a long time by expert. It means that our company has quality product and consulting service. Market penetration occurs when a company enters a new market with current products and the same market with competitor, the communications mix is used to gain market share from competitors. We are using Advertising via word of mouth to get attraction of customer. Actually, word of mouth usually is used when my company would like customer trust in company and word of mouth is not costly for

16 new company but it is very effective to attract customers because people will talk about good product and service when we have certain quality of produce and have support the seal from product and production standard.

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2.6.2. Business Level

In business level, we use differentiate strategy to create new service and product for getting more profit. As this business, A lot of farm is the same product lines. So we think the way to make competitive advantage to compete with competitor, it is using differentiate strategy. We will concern more on service and product, my service is teach the customer about keep the product for a long time because the most of people not know to keep or preserve of product which bring about to become rotten and suggest information in order to farm who has problem about their shiitake mushroom cultivation by expert.

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2.6.3. Function Level

Human Resource Management

For expert employee.

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My company hiring the best employees and training employees in order to provide a good product and service.

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Human resource functional will concern about employment process. First of all, when applicants is coming to apply the job. They have to do the questionnaires which are related with their service perspective.

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The questionnaires can evaluate applicants which they have a good view about service or not, it will affect to provide a service to customer when applicants are employed.

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Checking profile or background of applicants that if applicants are going to be our employee, they need to have all the job qualification that company want to be.

17 -To get the training session to improving service and product quality and it is the way that prepares employees before going to provide service with customers.

For general employee

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This part provide employee from villager or hill tribe for help to harvest, take care of grow up, packing and trim etc. of product by I not concern to qualification like to choose the expert employee.

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The expert employee to control general employee one more because they not same expert. I that worry about fail of service and product quality.

However, All employees are trained to improve a knowledge about shiitake mushroom include process of cultivate, keep the product for a long time, harvest, take care of grow up, packing and trim etc.

Logistic Management

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Logistic Management has responsibility for customer service which company will transport an product to customer

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Repair operations that there is repair service to customer by repairer. Provide a good driver who knows the map of Chiang Rai. This functional has to manage the distribution product to customer which is very important thing.

Marketing Management

Attract to customer via communication mix. As my company concern about the products and service quality, that is my advantage to compete with existing competitors and is barrier to new entre competitors. When customers get a problem about product that it might break, customer can take it to my company and the beaked product will be fixed by my repairer.

18 I use communication mixes to promote our company which has Advertising, Sales promotion, Event and Experiences, and Public relations. Those communication mixes are supporting positioning of our company. Advertising Word of mouth from many customer because my company concern quality of service and product for customer know reputation of company and give customer trust to quality and service from friend of they. The sales promotion It is a tool that my company uses for increasing sale. The special price and delivery service is offered to customer. My company has a free delivery service if customers buy products more than 2,000 baht and the destination is not far from our company or it is not more than 20 kilometers.

Event and Experiences Chiang Rai has a big fair every year that many people go those fair. So it is opportunity to promote and make customer’s perception. For example, Phor Khun festival and food festival.

Public relations My company concern on a quality service and product. The special service and product is provided to customers, there are have after sale service and customer gain the product that have a quality which support from product and production standard. My company would like to take care my customer as they are my family.

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20 3.1 Market Analysis

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3.1.1. General Environment Analysis

Social Everybody loves mushrooms undeniably since it fetches a high price in supermarkets, and even better mushrooms are often subject as magic mushrooms, good taste and have been used in medical term from the orient and is the most popular in all mushrooms Economics According to news of all channels TV, in 2010 .The high price of gasoline which effects to higher cost of sawdust. Politic At the present, government is strongly supporting agriculture. And emphasize on health trends therefore considering in consuming mushrooms is widely increased but shortage of mushroom growers. Technology New technology makes cultivation precisely, in Thailand we still take growing mushrooms as a backyard agriculture while other countries taking mushroom cultivation as a big business with high capital higher than 100 million dollars US and staffs from doctor degree down to common staffs, which is different from the mushrooms business in Thailand. With new path of increasing the marketing channel, Thailand has launched new 50 farms and capital investment accounted higher than 200 million baht occurred in 2.

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3.1.2 Competition Analysis

3.1.2.1. Competitor Analysis

Product Contaminants added to freshen the mushroom quality and low-standard packaging both negative disadvantages cause decreasing in customer consuming.

21 Quality Reduce cost of production makes the shiitake out of limit scales on amount of production decreased in quality of the mushrooms and its nutritional will be decreased and not fresh. Cultivation Nice area and best in cultivation mushroom climate is also matters in growing mushrooms to prevent loss of money and problems Preservation Cannot store long for future use as well as the freshness and nutritional will be decreased and problem with sales Cost of production High investment since the cost of sawdust is high and difficulties in purchasing fungi which cause in productive less than the cost of investment. Risk Risk is opportunity to abrogate the business with the complicated process, high investment, and problems with other nuisance fungi that can’t be solved immediately. Increase in productive without a supportive market channel due to trends and seasonal cultivating, climate problems and suitable area to grow mushrooms and ways of storing mushrooms for future use. Entrepreneur High investment to cultivating mushrooms and to freshen mushrooms, rare in supporting open channel without a proper quality that meets its expectation cause to. Abrogate of the business

3.1.2.2. Customer Analysis

Product Customer needs on quality product, clean and meets the standard on packaging tempting to purchase under the guaranteed of ministry of food and agriculture. Quality Customer needs fresh mushrooms and reliable on the product and the quality must be guaranteed and the statement on medical to cure disease.

22 Preservation Customer needs to store mushrooms and keep it fresh for a long period of use. Risk Natural growing with some contaminants and chemical added I the process with no guaranteed from the reliable department. Benefit Percentage of mushrooms consuming is now increasing since the dried shiitake was extensively widen and popular among Thailand people, led to new trends of consuming fresh shiitake to support Thai market and the medicinally support treatment, at present fresh shiitake are still not sufficient for the market.

3.1.2.3 Competitive Analysis

Product No chemical contaminants to freshen the mushrooms with a pretty package and can be stored long for future use, the details of the products related to weight, product name are provided on the label to manifest the product to customers to start captivating the product from consumers. Quality Shiitake mushrooms are defined as quality products and received a trophy from ministry of food and agriculture, keep it stored longer than any other markets for 28 days. Customer gain product that price appropriate to quality. Cultivation An area should best suit with proper environment and land geography to maintain enough area to grow mushrooms correctly on the process and tips on handle with major problems to expect actual amount of mushrooms and the quality is taken care of. Preservation Researching in storing shiitake lasted longest for 28 days which is longer than any other markets to freshen the life of shiitake longer and new and not lose nutritional.

23 Cost of production High investment mainly in cultivation and the process of keeping mushrooms freshen Risk Marketing problems by the price of mushrooms is alternating and disadvantage from competitors in production Benefit My company keeps the quality guaranteed at all times on the packages and the product by the ministry of food and agriculture. The mushrooms can be stored for a long time due to future use and preorder is also available.

3.2 STP Analysis Thai mushroom markets produce 95 % for the country and exporting 5 % such as dried mushrooms fresh mushrooms or frozen mushrooms and canned mushrooms can be categorized in 2 types below. 3.2.1 Segmentation

Figure 1: Segmentation of house shiitake mushroom

Fresh market

Conservation market

Not: Own graphic

24 3.2.1.1.The fresh market Figure 2: Segmentation of the fresh market

Wholesale market

Market by the house

Direct selling

Supermarket

Not: Own graphic Wholesale market Will find massive amount of mushrooms sold over there. For a specific market for mushrooms is not available, which effects for mushroom growers obtain less information about the market price with the low productive and low price. Market by the house It is a direct seller at source with an actual price and an actual amount of mushrooms weight. The product will be announced in advance before post on selling. Direct selling Must have exact order on customer’s need can raise up the price of the product following the customers satisfaction.

25 Supermarket One of an interesting market channels with a certain market source but the condition is limited in long term credit due to returning the fund, needs a continuously exporting sales with high quality of the product. 3.2.1.2.Conservation market

Figure 3: Segmentation of conservation market

Frozen business

Can factory

Dired mushroom

Preserved mushroom

Not: Own graphic

Frozen business It make possible for every food to be in a frozen process but needs exact order and have to be careful on contaminants but not common for mushrooms industry to go for frozen. Canned factory Mostly canned factory will have abalone canned but oyster, button and straw mushrooms will depend on the order of and its need seasonally.

26 Dried mushrooms Mostly are black wood mushrooms and some of oyster mushrooms by increasing the market channels will makes higher cultivation and meets proper standardize of the product. Preserved mushrooms Dried or fried mushrooms .Thai people also have specific ways to preserve mushrooms to keep it longer to consume in the future such as fermented mushroom, sweet mushroom, and chili paste with mushroom, mushroom meatball. The market channel is now widen up abroad with high nutritional in protein and cheap price.

3.2.2 Targeting

Figure 4: Targeting of house shiitake mushroom

Fresh market

Conservation market

Not: Own graphic

27 Figure 5: Targeting of Fresh market

Wholesale market

Market by the house

Direct selling

Supermarket

Not: Own graphic

The red area is the target of the company. The target of my company is Chokchareun Market that biggest of wholesale in Chaingrai, has two zones, first for vegetable around 35%, second for fruit around 65% of all wholesaler in the market, has a lot of fruit follow season but has less fresh shiitake mushroom in summer. Wholesaler in Chok-chareun Market has about 200 shops. (Survey April 23, 2010)

Opportunity Wholesalers want every grade of fresh shiitake mushroom. Wholesalers want every grade of fresh shiitake mushroom. Market is not far from farm. It’s biggest market of wholesale in Chaingrai. Wholesalers are not limit of amount of fresh shiitake mushroom. This market is not flood of fresh shiitake mushroom.

28 Threat The price of fresh shiitake mushroom will low in the winter because it’s period that a lot of product from china and agriculturist.

3.2.3 Positioning

Figure 6: Positioning of house shiitake mushroom

High quality of service  Shiitake house company  Boon rod farm, Mae Sai farm and Vieng Pa Pao Par Or Don Chai farm and  Ban doo farm High quality of product

Low quality of product

Low quality of service

shiitake mushroom house Company is position on best service and best quality of products. The opportunity that is the key to success of our company is best quality of products because many wholesalers like to get the product that has quality and quality appropriate to price. My company has product all the year, wholesalers want my product for attraction wholesaler’s customer and they can call for high price when market has few product. Moreover, the next key position is the best services; it has more influence to effect to my sales. If the company has good quality of service to our customer, they will become to regular customers too. Even though, the house

29 shiitake mushroom Company provided many service to increase satisfaction to our customers such as shiitake mushroom expert to give information to my customers and advice how to solve their problem or general problem, trained employees to serve customers and deliver products every morning.

3.2. Market mix strategy Product

Customer need fresh shiitake mushrooms everyday and to have all season that with no contaminant to freshen the mushrooms. On the part of service, the company base on quality of service that it has many services to serve my customer to be satisfaction. Firstly, the company has call center service to serve the customers who call to our company for check or order our product. Secondly, the company delivered our products free in 20 kilometers for customers who buy more than 2,000 Baht. If it more than 20 kilometers, the company will charges follow the distance. Thirdly, the company will train our employee with training course by the expert person. Next, the company has general advice service in our company to help our customer who has some trouble about cultivate by the expert person. Finally, the company has advance advice service that the company sent the trained employees to advice and beware the customers’ farm to increase their shiitake mushroom cultivate and tips on preserving mushrooms versatility for future use All of our service is doing with the good relationship, informally and good advices by trained employees or expert person for get along well.

30 Price

The high or low price depends on season and the price fits with quality of the product. We emphasize on whole sales to keep the customers satisfied in our product and services

Place

My company is located in behind Mae Korn Village because climate appropriate to cultivation it is near environment, there are mountain, tree, and reservoir and appropriate to grow of shiitake mushroom for high quality of product. The distance between my company and Chok- Chareun market about 20 kilometer but it is not obstacle. My company is near house of employees for they are convenience going to work and can come to take care the product closely.

Promotion

My communication mixes are dividing into 4 parts: Advertising, Sales Promotion, Event and Experiences, and Public relations. First of all, that is advertising, the company is promoting our company by word of mouth, it is not investment and built trustier than other intermediary. The second is sales promotion, my company provides free delivery service if customers buy products more than 2,000 baht and the destination is not far from our company or it is not more than 20 kilometers.

31 The third is Event and Experiences, Chiang Rai has a big fair every year that many people go those fair. So it is opportunity to promote and make customer’s perception. For example, Phor Khun festival. The company has the training course for my employees by expert person to serve the customer. In my company, there are trained employees and the expert person. Trained employees will advice my product. All of employees must past the training course to know all of information of product, preservation and cultivation, so the customer can trust our service that our employees are advising. The characteristics of employees must be clean, reliable, friendly, communication and politeness. In addition, the expert person wills advice the customers when they have any problem about shiitake mushroom cultivate. Then, the company has the event that the company will go to the customers’ farm to check their farm and advice how to increase cultivate product by trained employees when the customers want to get this help, but the customers need to make an appointment first. The next is public relations, my company concern on a quality service and product. The special service and product is provided to customers, there are have after sale service and customer gain the product that have a quality which support from product and production standard. My company would like to take care my customer as they are my family.

Another promotion is gift to the customers of each festival like happy New Year for build relationship with our customer to be the regular customers in the future.

32 3.3. Sale forecast According to I survey the price of product in each season in market which the season has effect to the price. My company has 100,000 units. I cultivation the shiitake mushroom lump is 6 months. The price is 90 baht on November to February because it is winter period that there are a lot of shiitake mushrooms and March to October the price is 120 baht because it is less fresh shiitake mushroom in market which it is price that we average of grade mix. From table you can see. The first year, sale was fewer other years and the second years, the sale was increase 40%. The third year, the sale was increase 20% because product was a steady increase.

33

Table 7 : Sale forecast Year 1

Description Kilogram Price per kg. Total

Jan 0 0 0

Feb 0 0 0

Mar 0 0 0

Apr 0 0 0

May 0 0 0

Jun 0 0 0

Jul 1500 120 180000

Aug 1500 120 180000

Sep 1500 120 180000

Oct 1500 120 180000

Nov 1500 90 135000

Dec 1500 90 135000

Total 9000 990000

Year 2

Description Kilogram Price per kg. Total

Jan 2100 90 189000

Feb 2100 90 189000

Mar 2100 120 252000

Apr 2100 120 252000

May 2100 120 252000

Jun 2100 120 252000

Jul 2100 120 252000

Aug 2100 120 252000

Sep 2100 120 252000

Oct 2100 120 252000

Nov 2100 90 189000

Dec 2100 90 189000

Total 25200 2772000

34

Year 3

Description Kilogram Price per kg. Total

Jan 2520 90 226800

Feb 2520 90 226800

Mar 2520 120 302400

Apr 2520 120 302400

May 2520 120 302400

Jun 2520 120 302400

Jul 2520 120 302400

Aug 2520 120 302400

Sep 2520 120 302400

Oct 2520 120 302400

Nov 2520 90 226800

Dec 2520 90 226800

Total 30240 3326400

35 3.4. Profit Estimation There is no account receivable, the cash receive is equal total sale in each year.

36

Table 8: Profit Estimation Year 1

Description Kilogram Price per kg. Total

Jan 0 0 0

Feb 0 0 0

Mar 0 0 0

Apr 0 0 0

May 0 0 0

Jun 0 0 0

Jul 1500 120 180000

Aug 1500 120 180000

Sep 1500 120 180000

Oct 1500 120 180000

Nov 1500 90 135000

Dec 1500 90 135000

Total 9000 990000

Year 2

Description Kilogram Price per kg. Total

Jan 2100 90 189000

Feb 2100 90 189000

Mar 2100 120 252000

Apr 2100 120 252000

May 2100 120 252000

Jun 2100 120 252000

Jul 2100 120 252000

Aug 2100 120 252000

Sep 2100 120 252000

Oct 2100 120 252000

Nov 2100 90 189000

Dec 2100 90 189000

Total 25200 2772000

37

Year 3

Description Kilogram Price per kg. Total

Jan 2520 90 226800

Feb 2520 90 226800

Mar 2520 120 302400

Apr 2520 120 302400

May 2520 120 302400

Jun 2520 120 302400

Jul 2520 120 302400

Aug 2520 120 302400

Sep 2520 120 302400

Oct 2520 120 302400

Nov 2520 90 226800

Dec 2520 90 226800

Total 30240 3326400

38

3.5. Marketing Expenses Market expenses are the cost that my company use for promoted our company. Each cost is separate by each season too.

Our company send gift to the customers at the important festival like Happy New Year and Songkran Day. For Happy New Year Festival, our company will give the calendar for Happy New Year customers and Songkran Day, our company will gift to the customer such as bags or shirts to build good relationship with customers.

Our company will establish the event with Chiang Rai big fair such as Phor khun festival on January because it is the important festival in Chiang Rai and there are many agriculturists who go to Phor khun festival. Actually, the cost is 5,000baht for rent.

39

Table 9: Third Years - Marketing Expenses

Year 1
Jan 0 0 0 0 Feb 0 0 0 0 Mar 0 0 0 Apr 0 0 0 May 0 0 0 0 Jun 0 0 0 0 Jul 0 5200 0 2400 Aug 0 5200 0 2400 Sep 0 5200 0 2400 Oct 0 5200 0 2400 Nov 0 5200 0 2400 Dec 1000 5200 0 3400 Total 1000 31200 0 32200

Description Sales Promotion Transportation Event Total

Year 2

Description Sales Promotion Transportation Event Total

Jan 0 5200 5000 12000

Feb 0 5200 0 5200

Mar 0 5200 0 5200

Apr 500 5200 0 5700

May 0 5200 0 5200

Jun 0 5200 0 5200

Jul 0 5200 0 5200

Aug 0 5200 0 5200

Sep 0 5200 0 5200

Oct 0 5200 0 5200

Nov 0 5200 0 5200

Dec 1000 5200 0 6200

Total 1500 62400 5000 78900

40

Year 3

Description Sales Promotion Transportation Event Total

Jan 0 5200 5000 12000

Feb 0 5200 0 5200

Mar 0 5200 0 5200

Apr 500 5200 0 5700

May 0 5200 0 5200

Jun 0 5200 0 5200

Jul 0 5200 0 5200

Aug 0 5200 0 5200

Sep 0 5200 0 5200

Oct 0 5200 0 5200

Nov 0 5200 0 5200

Dec 1000 5200 0 6200

Total 1500 62400 5000 78900

41 3.6. Conclusion

From sale forecast in each year, can understand from season of shiitake mushroom so it is result about price in each month and weight of product was a steady increase. This company cultivation the shiitake mushroom lump is 6 months. In first year, our company has less revenue than other year because waste times in make the sperm of shiitake mushroom and after that our company has product was a steady increase every year. According to I survey the price of fresh shiitake mushroom in the market, the wholesale price for mix grade of fresh shiitake mushroom is 120 baht per kilograms on March to October because there are a little of shiitake mushroom and 90 baht per kilograms on November to February because it is winter period which it hast a lot of shiitake mushroom from other farm and China.

42

43 4.1 Production and Operation Analysis 4.1.1. Product characteristic.

Botanical Description of Shiitake mushrooms Botanical Source: Lentinus edodes (Berk.)Sing. Botanical Synoms: Lentinus edodes (Berk.) Singer, Lentinula edodes (Berkeley) Pegler Scientific Botanical name: Lentinus elodes The other names: Shii-ta-ke,Lentinus edodes,Filamentous Fungi, Pinyin: Xiang Gu Synoms:Lentinula edodes, Lentinus shiitake ,Cortinelus edodes,Armillaria edodes Latin Name: Armillaria mellea Official Latin Name: Lentinula edodes

Common name: Hua gu,Oak Mushroom,golden oak mushroom, Oriental Black Mushroom,Chinese black mushroom,Glossagyne,Chinese shiitake mushrooms,shiitake,shiitake mushroom Plant Part Used: Fruiting body and mycelium.Dried Shitake Mushrooms - whole. Mushroom in its entirety. Shiitake mycelia Character: Edible and fragrant mushroom. Definition: edible east Asian mushroom having a golden or dark brown to blackish cap and an inedible stipe Properties: Sweet in flavor, mild in nature, it is related to the spleen and stomach channels. Functions: Nourishes the spleen and the stomach, benefits qi, induces eruption of measles.

44 Manners: One uses it to strengthen the natural body's immune systems and increase vigour. It is also powerful ant cholesterol. Effects: Stimulates immune systems, protects outside attacks.

In China it is called dongo and shanku. When served in Chinese restaurants here it is called "the black forest mushroom." These have closed caps. Koshin types (spring season variety) have open caps and are less expensive

4.

Habitat and natural environment of Shiitake mushrooms.

It is called "elixir of life" by Chinese emperors during the dynasty Ming. It slowed down their ageing and increased their vitality. Since the 40s, it is the object of traditional cultures in China. Mushroom refers to the conspicuous umbrella-shaped fruiting body (sporophore) of certain fungi, typically of the order Agaricales in the class Basidiomycetes but also of some other groups. Popularly, the term mushroom is used to identify the edible sporophores. Umbrella-shaped sporophores are found chiefly in the agaric family (Agaricaceae), members of which bear thin, bladelike gills on the undersurface of the cap from which the spores are shed. The sporophore of an agaric consists of a cap and stalk. The sporophore emerges from an extensive underground network of threadlike strands. An example of an agaric is the honey mushroom (Armillaria mellea). Mushroom may live hundreds of years or die in a few months, depending on

45 the available food supply. As long as nourishment is available and temperature and moisture are suitable, a mushroom will produce a new crop of sporophores each year during its fruiting season. Wu Ri, a physician from the Chinese Ming Dynasty era (A.D. 1368~1644), wrote extensively about this mushroom, noting its ability to increase energy, cure colds, and eliminate worms. The shiitake mushroom is considered to be the finest edible mushroom in Asia, where it has been used for over 2,000 years. Shiitake mushrooms are cultivated on logs, dead tree trunks, and sawdust. Shiitakes range in color from tan to dark brown, and have broad, umbrella-shaped caps, wide-open veils, and tan gills. Shiitake caps have a soft, spongy texture. When cooked, these mushrooms have a rich, smoky flavor and a meat-like texture. Shiitake are available year-round in many grocery stores and in Asian markets. Shiitake mushroom are sold fresh and dried. Shiitake Mushroom is also known by the names Oak Mushroom, Oriental black mushroom, and Glossagyne. Shiitake grows on the trunks or stumps of trees. In the wild, this light amber fungus is also found on fallen hardwood trees. Shiitake has been revered in China and Korea as both a food and medicinal herb for thousands of years. Wu Ri, a famous physician from the Chinese Ming Dynasty (A.D. 1368~644), wrote extensively about this mushroom, noting its ability to increase energy, cure colds, and eliminate worms. Wild Shiitake Mushrooms are native to China, and other Asian countries. Shiitake is widely cultivated throughout the world, including the United States. The fruiting body is used medicinally. Mushrooms have been valued as both food and medicine throughout the world, but until recently, many in the West associated all mushrooms with poison. The recent surge of Western interest in medicinal mushrooms shows that this attitude may be changing, however. Shiitake products containing LEM, a polysaccharide-rich extract from the Shiitake Mushroom, and similar extracts from Maitake Mushroom, are currently undergoing trials in the United States to see whether they are effective treatments for various cancers and AIDS. Currently, the total world worth of the pharmaceutical

46 and nutraceutical products derived from mushrooms is estimated at more than $1.2 billion. A vast amount of research into Shiitake's medicinal properties has been completed and shows that it has the ability to fight tumors and viruses and enhance the immune system. Primary chemical constituents of Shiitake include Polysaccharide (lentinan), eritadenin, proteins, fatty acids, and vitamins D, B-2, B-12. The proteins contain all of the essential amino acids, and most commonly occurring non-essential amino acids and amides. The fatty acids are largely unsaturated, and Shiitake's are rich in vitamins and minerals. Key therapeutic substances also present are glucans, a major constituent of the cell walls. Shiitake also yields Lentinan, a beta-1,3-linked glucan polysaccharide with a molecular weight of 1 million. Lentinan reversed tumor growth when injected in mice. It acts by stimulating the immune system, rather than by direct action on the tumor. Because of its large molecular size, Lentinan is not absorbed efficiently when taken orally, but some is absorbed. Lentinan activates the alternative complement pathway, stimulating the macrophages, thus inhibiting tumor growth. It also may activate interleukin-1 secretion, which helps trigger lymphocytes. Shiitake is believed to stimulate interferon production. Eritadenine, a purine alkaloid from Shiitake, is similar to nucleotides in structure, and lowers cholesterol in animal studies. 5. History and Origin of Shiitake mushrooms The fungus (Lentinus edodes) is cultured on solid media consisting of sugar cane bagasse and rice bran. 1. Just before the formation of fruit bodies, the above media are extracted with hot water. 2. The extract is sterilized by filtration and is dried after being concentrated, to give LEM powder. Shiitake (Lentinus edodes), according to Kampo medicine, supports immune function and interferon production.It also contains anti-tumor polysaccharides which stimulate macrophages or immune cells.

47

6.

Production Method of Shiitake extracts powder. Shiitake mushrooms(lentinus edodes) contains multiple nutrition such as rich

protein, fats, amino acids,carbohydrates,trace element and soluble dietary fiber that are indispensable for human health.Lentinan can produce the action of curing and preventing tumour. shiitake mushrooms (lentinus edodes) is a kind of natural green health food ,high content of protein and rich nutrition. Lentinus edodes is a delicious, nutritious, and completely edible fungus. The optimum conditions for growth are 80 - 90% relative humidity. a 5 - 15oC in temperature range for the low temperature type and 10 - 20oC for the medium temperature type. It is one of the most popular cultivated mushrooms with an annual yield of 14% of the total edible mushrooms (15 million tons) cultivated in the world. Shiitake is a popular edible mushroom from the Far East, for example served in miso soup. It is cultured on logs of the shii tree, Castanopsis (Querqus) cuspidata (Fagaceae), and exported in the dry state or pickled. An important odoriferous principle of shiitake is 1,2,3,5,6-pentathiepane, called lenthionine. In the pure state it is a crystalline substance Shitake Mushroom contains 18 amino acids ( 7-8 of which are essential) and over 30 enzymes. Eritadenine is a unique amino acid believed to lower cholesterol. Shitake Mushroom is high in B vitamins, especially B1, B2 and niacin; and in its sun-dried form, it provides vitamin D (found in very few foods). Oriental herbalists have used wild Shitake Mushroom medicinally for many years; Oriental folklore recommends its use for tumors, flu, heart disease, high blood pressure, obesity, sexual dysfunction, and aging. The past two decades have provided well documented clinical studies showing that Shitake Mushroom helps to decrease cholesterol; 3 ounces of shiitake per day can decrease cholesterol by as much as 12% per week. Shitake Mushroom is an enhancer of the immune system, and it may stimulate production of interferon. According to Kisaka Mori, Ph.D., Shitake Mushroom is high in enzymes and vitamins not usually found in plant foods. In studies, extract

48 form has helped to prevent transplanted tumors from taking hold. Possible indications for use of Shitake Mushroom include: heart disease, cancer, AIDS, high cholesterol, gallstones, stomach disorders, ulcers, diabetes, vitamin deficiency, anemia, common cold, allergies, insomnia, and neuromuscular disorders. It contains lots of bio-active substances such as polysaccharide protein, nucleic acid derivatives, vitamin B group, ergosterol, erytadenine, and various minerals. L.E.M. extract improves and activates the organ's defence functions. Especially, the action of erytadenine, very unique to Lentinus edodes is quite marked in preventing the accumulation of cholesterol and protecting from arteriosclerosis. Active constituents: Shiitake contains proteins, fiber, vitamins, and minerals. In addition, shiitake's key ingredient found in the fruiting body is a polysaccharide called lentinan. Commercial preparations employ the powdered mycelium of the mushroom before the cap and stem grow. This preparation is called lentinus edodes mycelium extract (LEM). LEM is rich in polysaccharides and lignans. One preliminary trial suggested that oral shiitake may be useful for people with hepatitis B. A highly purified, intravenous form of lentinan is used in China and has been reported to increase survival in people with recurrent stomach cancer, particularly when used in combination with chemotherapy. Similar findings have been found in one small clinical trial with people suffering from pancreatic cancer. Case reports from China suggest that intravenous lentinan may be helpful in treating people with HIV infection. However, large-scale clinical trials to confirm this action have not yet been performed. Oral supplementation of lentinan from shiitake has been shown to significantly reduce the recurrence rate of genital warts (condyloma acuminata). A preliminary trial involving a group of men and women with genital warts found that those who took 12.5 mg of lentinan twice a day for two months after laser surgery had significantly fewer recurrences (10.53% recurrence rate) compared to those who only had the laser surgery (47.06% recurrence rate).

49 Key constituents are the polysaccharied protein complex, a new peptidomannan, KS-2, and a water solubilized lignin derivative, EPS-3. Bioactive constituent: Beta-glucan, Heteroglucan, Adenine derivative, Guanosine 5' - monophosphate, polyacelylene. 7. Phytochemicals and constituents of shiitake mushrooms.

1.) Anti-tumor effect: Immune enhancement, Activating macrophage, T-cell and NK-cell, Increasing production of TNF-a, interleukins, interferon and complement C3 2.) Anti-HIV action: Producing synergistic effect with azidothymidine (AZT) 3.) Anti-hyperlipemia: Promoting the metabolism and excretion of the eaten cholesterol 4.) Anti-thrombogenicity: Inhibiting platelet aggregation 5.) Natural antidote: Strengthening liver function of detoxication 6.) Medicational effect against woodchuck hepatitis. 7.) Protection against bacterial infection. 8.) Lymphocyte blastogenic activity. 9.) Promotion of chemotaxis in macrophages. 10.) 11.) 12.) 13.) 14.) Influence on reverse transcriptase activity. Inhibitive effect on proliferation of rat ascites hepatoma. L929 cells cytotoxicity. In vivo neutrophil conglomerating activity. Expelling micro-organisms of external origin including bacteria,

fungi, viruses and protozoa.

50 15.) Expelling harmful chemial substances (residual agricultural

chemicals, environmental pollutants, food additives), pollen and dust. 16.) 17.) Expelling abnormal cells (mutant cells, cancer cells). Expelling worn out autocells (old erythrocytes, etc.), excessively

produced substances (antigen antibody complexes), etc. How it Works: Shiitake Mushroom has a polysaccharide compound called lentinan which helps produce T-cells to destroy bacteria and viruses and has anticancer, anti-tumor effects. It contains other nutrients helpful in strengthening the immune system and fighting disease-causing organisms. Shiitake Mushroom works to prevent heart disease by lowering blood pressure and cholesterol levels, helping pull fat from the system, and working as an anticoagulant. 8. Bioactivities and organ's defense functions of lentinus edodes.

1) Hepatitis: It is found to be particularly valuable for treating all forms of hepatitis, Helps decrease chronic hepatitis B infection.

2) Antiviral: It is a powerfully antiviral, with the ability to increase helper T-cell and low lymphocyte counts in human immunodeficiency virus (HIV)-positive individuals.

3).Immunity and Longevity: Builds immunity and promotes longevity, Invigorate Your Immune System: Recent studies have traced shiitakes' legendary benefits to an active compound contained in these mushrooms called lentinan. Among lentinan's healing benefits is ability to power up the immune system, strengthening its ability to fight infection and disease. Against influenza and other viruses, lentinan has been shown to be even more effective than prescription drugs; it even improves the immune status of individuals infected with HIV, the virus that can cause AIDS.

Shiitake may play a role in boosting a number of immune responses that help the body ward off bacterial and viral infection. Further study has shown that Shiitake may even be beneficial in the fight against HIV and related viruses.

51 4).Cancer prevention and anti-tumor activity: Lentinan, which is technically classified as a polysaccharide and referred to as a branched beta-glucan, has also been shown to have anti-cancer activity. When lentinan was given for human gastric cancer, reticular fibers developed in tumor sites. Reticular cells, which are spread throughout the body in various tissues, are immune cells that have the ability to ingest (phagocytose) bacteria, particulate matter, and worn out or cancerous cells. When lentinan was administered, not only was there a proliferation of reticular cells in gastric tumor sites, but many T lymphocytes (another type of immune defender) were drawn to these cancer sites with the result that the cancer cell nests were fragmented and destroyed. Research also suggests that shiitake may be a valuable weapon against cancer. Its ability to activate the immune system may specifically stimulate responses that can counter the growth of tumors. Because of these benefits, shiitake has been used as a supportive therapy in breast, advanced colo-rectal and stomach cancers.

In addition to boasting anti-cancer properties, shiitake may support cardiovascular health by potentially lowering cholesterol and reducing

artherosclerotic buildup in the circulatory system.

5).Helps prevents heart disease by lowering cholesterol, blood pressure and has anticoagulant properties: It can also lower blood levels of cholesterol and lipids. A large number of animal studies conducted over the last ten years have shown that another active component in shiitake mushrooms called eritadenine lowers cholesterol levels--and this amazing compound lowers cholesterol no matter what types of dietary fats the lab animals are given. Even when lab rats are given dietary protein rich in methionine (an amino acid researchers have found causes an increase in cholesterol formation), eritadenine still lowers plasma cholesterol levels in a dosedependent manner. In other words, the more eritadenine given, the more cholesterol levels drop.

6).Fatigue: Relieves fatigue and increases energy.Fights fatigue and builds

52 strength.Valuable for chronic fatigue syndrome, herpes simplex types 1 and 2, for liver problems such as hepatitis, and for other virus-induced conditions.

7).Drive: Good for colds and to eliminate worms.

8).HepatitusB:

9).Ihibitory: Shiitake extract showed an inhibitory effect on water-insoluble glucan formation from sucrose by crude glucosyltransferases of Streptococcus mutans JC-2 and S. sobrinus OMZ-176. The firmly adherent plaque in the artificial plaque formation test was strongly inhibited by shiitake extract.

10).Anti-aging: Shiitake extract can be used to boost the immune system, protect the body from cancer (and even shrink existing tumors), lower blood cholesterol levels, reduce blood pressure and combat viruses and bacteria. Shiitake contains vitamins, minerals, amino acids, and a number of polysaccharides, which are linked to countering cancer, primarily by promoting immune function rather than attacking cancer cells directly. Following the discovery that cancer patients given lentinan have increased survival times and a more positive prognosis, the Chinese have recently begun prescribing the polysaccharide as an adjunct to chemotherapy. Other research also indicates shiitake extracts may assist in the treatment of AIDS.

11).Overall Energy and Liver Enhancer: Shiitake extract can be used to boost the immune system, protect the body from cancer (and even shrink existing tumors), lower blood cholesterol levels, reduce blood pressure and combat viruses and bacteria. Shiitake contains vitamins, minerals, amino acids, and a number of polysaccharides, which are linked to countering cancer, primarily by promoting immune function rather than attacking cancer cells directly. Following the discovery that cancer patients given lentinan have increased survival times and a more positive prognosis, the Chinese have recently begun prescribing the polysaccharide as an

53 adjunct to chemotherapy. Other research also indicates shiitake extracts may assist in the treatment of AIDS. 12).To treats indigestion, poor appetite, tiring easily, and constant urination: Can be cooked by itself or with chicken meat in a dish and consume it.

13).To treat slow eruption of measles in children. Cook several shiitake mushrooms in water. Consume both the mushrooms and drink the solution. 14).Health Benefits: A symbol of longevity in Asia because of their healthpromoting properties, Shiitake mushrooms have been used medicinally by the Chinese for more than 6,000 years. Now that their rich, smoky flavor has endeared them to American tastebuds, these exotic hearty mushrooms can be found in supermarket shelves across the U.S.

15).Adsorption of Cadmium from Aqueous Solutions: Fungal organisms can remove heavy metals from aqueous solutions. Macro fungi such as Agaricus bisporus and Lentinus edodes (shiitake), commonly called mushrooms, are edible and are grown commercially. Laboratory batch studies were conducted at room temperature (21 +- 1 Deg C) to determine the potential of these fungal biomasses for adsorption of cadmium from aqueous solutions containing 1 mg/L cadmium. Results from batch studies showed that biomasses prepared from A. bisporus and L. edodes had good potential for removing cadmium from aqueous solutions. The maximum adsorption capacity of A. bisporus and L. edodes for uptake of cadmium from aqueous solutions was 2.08 and 0.716 mg/g, respectively. The equilibrium time for adsorption was found to be 6 and 1 h for A. bisporus and L. edodes, respectively. 68% cadmium removal was achieved with A. bisporus and 45% with L. edodes. The optimum initial pH was found to be 6.0 and 5.0 for A. bisporus and L. edodes, respectively.

Isotherm studies suggested that cadmium adsorption by both the mushrooms followed the Freundlich isotherm. Desorption of cadmium from mushrooms by dilute HCl was minimal (19%), but rapid.

54

16).Dental Cavities: Finally, based on clinical study shiitake may be useful for preventing dental cavities. 9. Shiitake mushrooms: Action and possible benefit. The traditional intake of the whole, dried shiitake mushroom is 6~16 grams per day. The mushroom is typically eaten in soups or taken as a decoction (i.e., boiled for 10~20 minutes, cooled, strained, and drunk). Recommended intake of LEM is 1~3 grams two to three times per day. Purified lentinan is considered a drug in China and is available as an herbal supplement in North America. Directions For extracts:100 mg~400mg of extract. 3 times a day, with food. Before taking any herbal product, you are advised to consult with a trained health care professional.

10.

How much is usually taken for Shiitake mushrooms?

The traditional intake of the whole, dried shiitake mushroom is 6~16 grams per day. The mushroom is typically eaten in soups or taken as a decoction (i.e., boiled for 10~20 minutes, cooled, strained, and drunk). Recommended intake of LEM is 1~3 grams two to three times per day. Purified lentinan is considered a drug in China and is available as an herbal supplement in North America. Directions For extracts:100 mg~400mg of extract. 3 times a day, with food. Before taking any herbal product, you are advised to consult with a trained health care professional.

55 11. Safety, Toxicity, Cautions, Contra-Indications: Lentinus edodes Usage Guidelines. Shiitake mycelia stimulate macrophages to engulf foreign objects by recognizing antigens and transferring information to T-helper cells. If the foreign bodies are destroyed then the odds of contracting an infection or disease is very limited and not probable. Since Shiitake mycelia is able to increase immune support, the HIV infection is hampered. Pregnant and lactating women should consult doctor before using. Excellent safety record but has been known to cause temporary diarrhea and bloating in high dosages. There have been no toxicities reported. Before taking any herbal product, you are advised to consult with a trained health care professional. Safe and non-toxic, even in very large does. Shiitake mushrooms are not a commonly allergenic food, are not included in the list of 20 foods that most frequently contain pesticide residues, and are also not known to contain goitrogens, oxalates, or purines. 12. Shiitake Mushroom Tradition Long a symbol of longevity in Asia because of their health-promoting properties, shiitake mushrooms has been used medicinally by the Chinese for more than 6,000 years. More recently, their rich, smoky flavor has endeared them to American taste buds and these exotic hearty mushrooms can now be found in supermarket shelves across the U.S. throughout the year. Like other mushrooms, these specialty mushrooms are as mysteriously unique as they are delicious. While often thought of as a vegetable and prepared like one, mushrooms are actually a fungus, a special type of living organism that has no roots, leaves, flowers or seeds.

Ancient healers prescribed them for a number of ailments such as fatigue, liver ailments, vision problems, sinus conditions, colds, gastrointestinal ailments. Shiitake were also prescribed as a general prophyllactic to promote longevity, vitality, and well-being.

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What the ancients knew, modern medicine is just beginning to discover. Compounds in shiitake mushrooms--especially a phytochemical called lentinan have been subjected to various clinical studies, and are thought to have possible benefit for a number of disorders, including cancer, heart disease, hyperlipidemia, hypertension, hepatitis, AIDS, and herpes (and other viral conditions). In addition to the phytochemicals that seem to bring health benefits, these delightful fungi are also host to a significant number of macro- and micronutrients. They have high levels of amino acids (including glutamic acid, a nonessential amino acid considered to be "brain food" due to its ability to stimulate neurotransmitter activity as well as its ability to transport potassium to the brain), protein, enzymes (dietary enzymes are vital for proper absorption of nutrients and digestion of food), dietary fiber, and various vitamins and minerals, including ergosterol, which can be converted by sunlight into vitamin D.

Last, but not least, shiitake are delicious. Luckily for both the medical and culinary worlds, shiitake are now among the most-cultivated edible mushrooms in the world.

13.

Why Eat It: Cooking Shiitake.

The shiitake mushroom (Lentinus edodes) has been prized by people in China and Korea for at least 2,000 years. Valued not only for its culinary contributions, the

57 shiitake is also consumed for its medicinal properties. One of the world's most cultivated edible mushrooms, shiitakes are a good source of nutrients and they contain eight essential amino acids as well as thiamin, riboflavin, niacin, and dietary fiber and enzymes. Shiitake mushrooms also contain ergosterol, which can be converted by sunlight into vitamin D.

Ancient Chinese physicians knew the power of this dark, meaty, capped woodland mushroom and they prescribed it as an important food to activate qi, which is roughly translated as "life force." Shiitake was also promoted by ancient healers as a food that promotes longevity, protects the immune system, and as a preventative against gastrointestinal distress, liver disease, colds, flu, and circulatory problems. Scientists today are discovering that the ancient healers of China indeed knew their medicine and that shiitake may be instrumental in helping to combat a host of serious ailments including heart disease, cancer, and life-threatening viral conditions. Of interest to scientists is a substance extracted from shiitake known as lentinan. A polysaccharide, lentinan is currently under investigation for potential anti-tumor effects, blood pressure-lowering effects, and cholesterol-lowering effects. Lentinan is currently being studied for its ability to inhibit cancer, primarily by stimulating certain types of white blood cells important in immune function rather than by directly attacking cancer cells. Shiitake extracts have been tested in recent years in China as an adjunct to chemotherapy, and a highly purified form of lentinan is currently used in China in conjunction with standard chemotherapy agents in the treatment of cancer. Another compound in shiitake, lentinula edodes mycelium (LEM), may prove to be helpful in treating and preventing cancer, heart disease, hyperlipidemia, hypertension, infectious disease, and hepatitis. Eritadenine, another substance in shiitake, may be responsible for helping to reduce blood levels of cholesterol and fats by promoting their excretion. If you are on blood-thinning anticoagulant medication, it is important to consult with your physician before consuming large amounts of shiitake as these mushrooms may possess blood thinning properties.

Varieties: While there are no different varieties of shiitake mushrooms, they

58 are frequently sold for different prices depending upon their size. It is not so much the size of the mushroom that determines the price, but the plumpness of the cap. Thick, plump caps are meatier in texture and somewhat more flavorful than others. This size-related price differential applies to both dried and fresh shiitakes. Preparation: Fresh shiitake are delicious sauteed, stir-fried, marinated and grilled, or braised. To prepare shiitake for cooking, the stem should be removed (you can save the stems to use in stocks or discard them).

Sauteing or stir-frying: Slice the mushrooms and saute or stir-fry for five to seven minutes in a little oil or broth until tender.

Grilling or broiling: Marinate large whole mushroom caps in an herbed vinaigrette, or broth, place on the grill or under the broiler and cook five minutes, turning the mushrooms as they color, until soft and tender.

Braising: Heat a little broth and chopped garlic, add whole mushroom caps and either cook slowly on top of the stove or oven braise at 375 Deg F for 10 minutes, turning the mushrooms halfway through cooking until tender. Serve with any pan juices.

Simmering: Use whole or sliced mushroom caps in soups and stews. In soups, drop mushrooms into simmering soup and cook until tender. In stews, add mushrooms when adding other vegetables and simmer until stew is done. Reconstituting dried shiitakes: Dried shiitakes should be soaked and reconstituted before cooking. They can be soaked in either hot or cold water until rehydrated. Mushrooms take 20 minutes (in hot water) or up to two hours in cold water. Some people feel that the slower soak in cold water makes the mushrooms more tender and flavorful once cooked, however both work well. Once rehydrated, scoop the mushrooms out of their soaking liquid, leaving any dirt behind. Strain the

59 soaking liquid through a fine-meshed sieve lined with cheesecloth or paper towels. The soaking liquid is very flavorful once cooked down. Use it in the dish you're preparing or in soups, stews, stir-fries, pasta sauces, and braises. Cooked in soup; steamed or fried in dishes. Before using fresh shiitakes, tear off the fibrous stems, and clean the mushrooms carefully with a damp cloth or paper towel. The mushrooms can also be rinsed briefly, but do not allow them to soak as they will swell with water. Dried shiitakes should be reconstituted in warm water for approximately one hour. Once they are reconstituted, chop off the stems. Use the soaking water and stems to make soup stock. Cooking brings out the distinct flavor of shiitakes. Saute or fry them in oil for 5 to 7 minutes; or cook them with a small amount of liquid in a tightly covered pan for 15 minutes. Once cooked, add them to a pasta recipe, rice dish, soup, sauce, or stir-fry.

When buying fresh shiitake mushrooms, choose mushrooms with firm, spongy caps and small stems. Fresh shiitake mushrooms keep for up to 14 days when stored in the refrigerator in a paper bag. Store dried shiitakes in a cool, dry place. Cautions on Use: It is recommended that you only buy wild mushrooms from dependable retail outlets. Certain wild mushrooms can cause damage to the heart, liver, and kidneys. Some species can be lethal. 14. Nutritional profile of Lentinus edodes.

Introduction to Food Rating System Chart:

The following chart shows the nutrients for which this food is either an excellent, very good or good source. Next to the nutrient name you will find the following information: the amount of the nutrient that is included in the noted serving of this food; the %Daily Value (DV) that that amount represents (similar to other information presented in the website, this DV is calculated for 25-50 year old healthy woman); the nutrient density rating; and, the food's World's Healthiest Foods

60 Rating. Underneath the chart is a table that summarizes how the ratings were devised. For more detailed information on our Food and Recipe Rating System.

 Modern Research of Lentinus edodes: Shiitake mushroom is a well-known remedy for a variety of disorders. It has been used to prevent heart disease, build resistance against viruses and disease, and treat fatigue and viral infections. In China, during the Ming dynasty, shiitake mushroom was recorded as increasing stamina, and in the 15th century it was given to warrior priests for its energy-giving properties. Mushrooms contain the phytonutrient called lentinan. This plant chemical, along with another phytonutrient found in shiitake mushrooms known as D-fraction, appears to be able to suppress tumour growth. This potential cancer-fighting effect of mushrooms is an area of intensive ongoing research.

61 1).Inhibition of human colon carcinoma development by lentinan from shiitake mushrooms. Study showed that the antitumor property of lentinan was maintained with oral administration. In addition, "primed" lymphocytes, when given passively to immunodeficient mice, were able to retard the development of tumors in these mice.

2).Anticaries effect of a component from shiitake.

The caries-inhibiting effect of the extract from shiitake (Lentinus edodes), the most popular edible mushroom in China, was studied both in vitro and in vivo. Shiitake extract showed an inhibitory effect on water-insoluble glucan formation from sucrose by crude glucosyltransferases of Streptococcus mutans JC-2 and Streptococcus sobrinus OMZ-176. The firmly adherent plaque in the artificial plaque formation test was strongly inhibited by shiitake extract. The reduction of firmly adherent plaque caused an increase in the incidence of non- and loosely adherent plaque and a decrease in total plaque formation. A significantly lower caries score was observed in specific pathogen-free rats infected with S. mutans JC-2 and fed with a cariogenic diet containing 0.25% shiitake extract as compared with controls fed the cariogenic diet without shiitake extract.

3).A placebo-controlled trial of the immune modulator, lentinan, in HIVpositive patients: AID Lentinan is a beta 1-->3 glucan isolated from Lentinus edodes (Shiitake mushroom) which has immune modulating properties.

4).Three kinds of antibacterial substances from Lentinus edodes (Berks) Sing. Three kinds of antibacterial substances were extracted by chloroform, ethylacetate or water from dried Shiitake mushrooms (Lentinus edodes). These substances possess efficient antibacterial activities against Streptococcus spp., Actinomyces spp., Lactobacillus spp., Prevotella spp., and Porphyromonas spp. of oral origin. In contrast, other general bacteria, such as Enterococcus spp., Staphylococcus spp., Escherichia spp., Bacillus spp., and Candida spp. were relatively resistant to these substances. Chloroform extracts had bactericidal activity

62 against both growing and resting bacterial cells of S. mutans and P. intermedia, whereas the other two extracts showed bacteriostatic activity against both growing and resting bacterial cells of S. mutans and resting bacterial cell of P. intermedia. The antibacterial activity of chloroform extracts and ethylacetate extracts were relatively heat-stable. The water extract was heat-labile.

5).Effects of shiitake extract on human neutrophils and the U937 monocytic cell line: The aqueous extract of the shiitake mushroom was found to decrease IL-1 production and apoptosis in human neutrophils, as measured by ELISA and flow cytometry respectively. It was found to increase IL-1 production and apoptosis in the U937 monocytic cell line. The extract showed no significant effects on the superoxide production of both neutrophils and U937 cells, as measured by chemiluminescence. The extract was further separated into high and low molecular weight components, and it was found that the low molecular weight component retained the activity of the whole extract. This further suggests that the active substance is a novel compound distinct from lentinan, a well-studied high molecular weight anti-tumour agent found in shiitake.

6).Preparation and specificity of antibodies to an anti-tumor beta-glucan, lentinan. Antibodies against beta-glucan, lentinan from "Shiitake" (Lentinus edodes), were raised in the rabbit by subcutaneous immunization. Our antibodies did not recognize the other polysaccharides such as amylose, dextran, laminarin and galactan. It was proved that lentinan contents in mushroom could be measured by ELISA with the anti-lentinan antisera. Its contents were 3.5 mg/g fresh weight in Lentinus edodes. However, lentinan was not contained in Agaricus brazei, Agaricus bisporus and Ramaria bitrytis. Fungal Polysaccharides and Metabolites as immunomodulators Basidiomycetes and polysaccharides In traditional oriental and folk medicine, various kinds of fungi belonging to basidiomycetes have been used as remedies for cancer.

In the 1969 a China Scentist reported the antitumor activities of aqueous extracts of seven different edible mushrooms against sarcoma-180 ascites tumor in

63 mice. The percentage inhibition of this tumor ranged from 43 to 92% following intraperitoneal injection of 200 mg/kg/day of th3 water extracts fir ten days. Lentinan has been most extensively investigated; excellent reviews are available on the chemical, biological, immunological and clinical studies of this compound

7).Lentinan has been proven to be a beutral polysaccharide. It is fully purified B-1,3-d-glucan with B-1,6-branching: X-ray analysis of the solid sample revealed a right-handed triple helical structure. The table 3 summarizes the immunomoduating polysaccharides from nine different fungi.

It is worth noting that most of the active components have B-(1-6) glucose or a-(1-4) glucose as the side chain. The notable exception in the galactomannan derived from Cordyceps cicadae. It has a-D-(1---2), a-(1-6) configurations in the main chain and B-D-(1-2) configuration in the side chain.

Lentinan and Its Mode of Action Among the fungal polysaccharides, lentinan is the most extensively studied compound. It has been shown to exert significant antirumor effect and to prevent chemical and viral on cogenesis. Lentinan has been proven to have significant antitumor and metastasis-inhabiting effects in allogeneic and autochthonous hosts, and its unique mode of action has been exhaustively investigated. Many acute, semi-acute and chronic toxicological studies have been completed in animal models.

The antitumor effect is host-mediated. It represents a unique class of immunopotentiators. It is a T cell-oriented adjuvant. In vivo lentinan triggers the increased production of various bioactive serum factors associated with immunity and inflammation, such as interlukene-1 (IK-1), interlukene-3 (IL-3), colony stimulating factor (CSF), vascular dilation inducer, and acute-phase protein inducer, etc. These effects are produced either by the direct impact of macrophages or indirectly via lentinan-stimulated T cells, which initiate the induction of many immunological changes in the host. Enhanced IL-1 production promotes the maturation of immature effectors cells to mature cells capable of responding to

64 limpkins like IL-2 and T cell-replacing factors. This mechanism of action requires intact t cell system for antitumor activity of lentinan.

Conclusion For thousands of years Fu Zheng (supporting the normal and) and Chei Shei (gertting rid of the abnormal) herbs have been used in cancer therapy and treatment of various diseases in Chinese traditional medicine. Only recently have the biochemical and pharmacological basses of the immunological effects of some Chinese herbs and polysaccharides from edible mushrooms been elucidated. Many of the Fu Zheng herbs and fungal metabolites, especially polysaccharides, have been shown to stimulate cellular immunity functions. Promising clinical result have been shown by Taguchi et al. In a randomized control study of lentinen (from Lentinus edodes) in phases III on patients with advanced and recurrent stomach and colorectal cancer.

4.1.2. Production process

It is recommended to keep spawning in environmentally clean to not effect contamination rate by calling the process Aseptic technique, mostly contaminates by microbes and careful in using kits to utilize spawn.

Mushroom culture production

Mushroom culture production separate into 4 procedures.

1. PDA jelly production

Preparation of Potato Dextrose Agra or PDA including: 1. Potatoes 200-300 Grams

2. Dactose Sugar 20 Grams 3. Jelly 4. Clean water 20 Grams

65 Steps in producing PDA food jelly

1. Clean potatoes without peeling. 2. Cut into cube of 1 by 1 by 1 centimeter. 3. Boil cut potatoes for 15-20 minutes, until cooked. 4. Screen the potatoes out. 5. Put on low fire. 6. Mix jelly with the potatoes water. 7. Put in dactose, and stir until all sugar melt. 8. Screen jelly thought cone into short bottle of 1 inch. 9. Plugged with cotton and cover with paper pieces. Take the bottle to steam in pressurized pot with 15 lbs. per sq. inch for 20-25 minutes. 10. Place the bottle at the angle, to increase surface area, left till become solid, and use to feed mushroom.

Mycilia culture

66 Mycilia culture can be done more easily than produce spores to cultivate the similar fungi suitable for oyster mushrooms, button mushrooms, straw mushrooms and abalone.

The process

1. Bring inoculating needle for alcohol lamp, lighter, spore, PDA jelly inside the inoculating needle. 2. Insert both hands inside the autoclave and use alcohol to clean up operators hands. 3. Flaming alcohol lam. 4. Place inoculating needle near the fire and make 45 geometry angle degree. 5. Rip the cap in two and place one of each on the autoclave. 6. Use inoculating needle beneath the joint between the cap and stem in a round headed pin size. 7. Heat the tip of the bottle and unplugged the cotton with round headed pin. 8. Place the mycilia on the center of jelly. 9. Heat the bottle tip and plugges with cotton and paper pieces. 10. Run spawn in a clean place at normal temperature for 15-20 days.

2. Shiitake substrate

Is a substrate for shiitake cultivation comprises of corn seeds, sorghum and paddy but Thai people commonly use sorghum as highly in nutrient and low cost.

The process 1. One night immersing for sorghum to soften the seeds and keep replacing new water for 2-3 times during the immerse. 2. Heat the sorghum until it’s cooked. 3. Pour out the water and place sorghum on the grate spread sorghum all over the grate and gets a whiff. 4. Fill sorghum grains in the bottle and plugged with cotton and paper piece and scrunch rubbers and wrapped with scrunch rubber.

67 5. Sterilized the bottles with low cost autoclave the pressure check is 15 pounds per square inch for 20-30 minutes. 6. Cooled and inoculated with inoculums.

3. Inoculation

1. Clean the tools with alcohol. 2. Use the grate to sift sorghum. 3. Place both hands inside the autoclave and flaming alcohol lamp. 4. Temporarily flaming the head rounded pin and make 45 angle 5. Heating the bottle tip and unplugged the cotton. 6. Syringe the cut jelly 1x1 cm square and inject in the center of the jelly. 7. Stimulate the bottles and heating the bottle tip unplugged the cotton and heating the bottle tip once again and injects the syringe on the center of jelly and heating the bottle it for the last time and plugged with cotton and wrap with scrunch rubber. 8. When sterilization is completed the spawn will be transferred from the bottle to sperm ripen room about 10-15 day.

68 4. Spawn run Formulation of shiitake sunstrate.

1. Sawdust 2. Rice bra 3. White cement 4. Gypsum 5. Magnesium sulfate 6. Water

100 kgs. 3-5 kgs. 1 kg 2 kgs 0.2 kg

60-65 liter

The process

1. Screening sawdust. 2. Adding rice bran to sawdust and dissolving the materials altogether. 3. Adding water and mixing materials. 4. Filling and compacting with rod manually for 0.8-1 kg per bag. 5. Vacuum the bag and wrap the tip bottle with scrunch rubber. 6. Plugged the bottle tip with cotton and paper piece and wrap with scrunch rubber. 7. Sterilize the spawn for 3-4 hours at the boiling point and let it cool to prepare the next process. After bagging the sterilization should be done within 24 hours otherwise spawn will produce ammonia acid which will damage the shiitake fungi.

69 Inoculation process in the bags

1. Prepare tools for inoculation 2.Shake bottle to separate grains then gives heat at the ring bottle with alcohol lamp and plugged off the cotton 3.Use a thumb and an index finger on the other hand take cotton out of sorghum grain 4. Pour spawn grain in a plastic bag for 10-20 seeds or 1 teaspoon as one bottle can form inoculations for 30-50 bags 5.Plugged with cotton and cover with paper piece and rubber bands 6.Take spawn to a substrate room then the mycelium will fill the bag and see the difference following the table When it starts browning without pesters, bring substrate to get ready for fruiting if it happens to be oysters should keep out longer for the mycelium to grow then get to a fruiting room. Utilize spawn

1. Frequent check the spawn bag and inoculate must be maintained to get rid of pest and flies. 2. Remove contaminate bags during cropping cycle outside the house. 3. Get rid of neck and ring. 4. Ventilation inside the house is needed especially the temperature over 28C 5. Shiitake fiber will grow better at 22C temperature

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How to care for shiitake

1. Shiitake will best grow at 25C temperature. 2. Fiber spawn will be best grown at 23-25C temperature. 3. If there is a brown spot occur on spawn, the bag can be removed to let mushroom spawn form the fungi by immersing on 10-15C temperature cold water for two hours and cut the lid and turn over the spawn and keep watering for 24-30 hours and turn the spawn back up to its place. 4. P roper temperature for opening caps should be during the day and the night temperature shall not be alter than 10C humidity is 90 % if its moisture less there will be decay occur and stop growing.

Watering 1. The water should be well clean and low temperature to produce quality shiitake. 2. Watering is not recommended before harvest because it will slow cap enlargement and lower the quality. 3. Watering by spray is different on amount of time given seasonally

Cold season Hot season

watering watering

4-5 8 1-2

times a day times a day times a day

Rainy season watering

Pest and disease

1. Spores come in forms of black spore green spore slime spore and is abundantly grow in moisture condition therefore the house mush be clean and well hygiene and ventilative to prevent from the disease. 2. Virus will damage its fiber during virus disease will decay shiitake fiber during substrate process.

71 Solve problems of green mold disease

Some growers might stimulate the growth of mushroom mycelium by facing them with direct soil and water it to bloom; this could cause other nuisance fungi but commonly will be green mold disease trichoderma viride, back when the bacillus subtilis were damaged and cause to lose money and income. To solve green mold disease is by increasing the microbes plaikaew dissolve in 15-20 liter water,5 fresh eggs,3 coconuts water, give oxygen to be formed as a fish tank for 24 hours and spray directly to infected mushrooms, the disease can be solved within 1-2 days as the shiitake grow.

Stimulation of mushroom growth

1. When mushroom spawn is prepared after 120 days pull off the cork on the cotton and also the plastic cork and rise up the plastic bag to receive oxygen and color change to brown by 15-30 days. 2. When spawn is checked once it has changed its color to brown then cut the lid of the bag and slit the bottom to let out of water 4 corners of the bag the width should be 1 inch. 3. Watering on spawns every 1-2 hours continuously. 4. To make mycelium growing off the seed by. 4.1 Immerse in 10-15C water for 24 hours. 4.2 Use a drain sack and cover it on spawn surface for 24 hours. 4.3 To let mycelium breathe and provide a place for mushroom to form by punching with elastic material. 5. After the stimulating mushroom to form then watch them grow in 2-3 days shiitake will tart blooming and ready to pick in 4-5 days the cap will separate

72 from the stem 20-50% that’s what shiitake mushrooms are ready to be picked and the quality meets the standard of reaping. 6. After shiitake is harvested the spawn will be kept idling for 15-30 days until the next cultivation following the exact processes. Shiitake can be harvested 6 times and each pack will approximately weight 150-200 grams subject to its type proper environment.

Mushrooms harvest

After stimulating mushrooms, next 5-7 days will be ready to pick and trim the stem; the cap must be separated from the stem 20-50% and next will be the process of selecting the eating size to sell out to markets. Objectives and methods 1. Temperature is important for growing mushrooms should be maintained at 25C but the temperature between 20-26 C mushrooms will either grow. mushrooms bloom in temperature of 12-17C if higher than 20C the cap will be over spread and thin, dark and long stem if the temperature during the day and night are varies the cap will have dots, thicken cap, pale and short stem. By building a house growing for mushrooms should arrange the roof to be made from hays, straws, bamboos etc. And set the water system to flow in and out of the house once the temperature is higher than 25C.

73 2. Humidity is amount of 50% needed, no watering around the bag and try not to contact with cotton at the tip of the bag as it will cause of other fungies humidity is related to shiitake’s growth should be maintained at 80-90%, receiving a cool wind during the blooming process will makes shiitake have specification close to imported shiitake mushrooms. 3. Ventilation is important for growing mushrooms and prevent from other nuisance fungi as mushroom need oxygen as well as carbon for their growth moderately if amount of carbon is exceeded shiitake will stop growing and shriveled. 4. Dimmed light helps stimulate in growing and blooming of shiitake and helps produce coloring cap and highly in vitamin D 5. Nutrients - Carbon is needed for their growth, could come from sugar, rice flour or sawdust. - Nitrogen is part of the protein can get it from rice bran. - Calcium is consisted in producing cell wall and protein that get from the cap comes from white cement reduce acid on food. - Manganese, iron, zinc helps in their growth. 6. The acid-alkaline (pH) should stay at pH 3.5-4.5. 7. Weather conditions, shiitake grow perfectly with recent cool and moisture for the whole 4 months during November- February by starting to make spawn from June. 4.1.3. Service process

All of our service is doing with the good relationship, informally and good advices by trained employees or expert person for get along well with our company conceptual that “best the product and service”. Because our company base on good quality of service, so our company has many service to serve our customer to be satisfaction while the customer come to our company or when they need to get help.

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For general services processes It is the process that the customers come to our company for buy or get some help. The company will train all employees with training course by the expert person to make our employee to be follow characteristics of employees: clean, reliable, friendly, communication and politeness. In addition, our employees get more knowledge about shiitake mushroom cultivates. .

When there are customers come to our company, our employees will welcome the customers with smile and good relationship and ask for get some help from the customer. The customers who come to our company, they have many objects. If the customers come to buy our product, The Company will serve the customers. Our employees will give some help for our customers by get the products. If the customers buy our product more than 2,000 Baht, the company will free deliver in 20 kilometers. If the customers come to our company for taking some advice or they have some trouble. The company will serve the customers. Our employees will ask the trouble from the customer. If our employees can answers the customers’ trouble, they will answer clearly and politeness.

For Call center services processes The company has call center service to serve the customers who call to our company for order our product, and need some help. This service process follows:

1. The company will establish the call center service and our company will use the trained employees to be call center too. In addition, the company will make the advertising to promote that our company has call center to serve and help the customers. 2. When the company receives the call from the customer, our service process will separate by the customers follow:


The customers who want to order the product, the process of this service. Firstly, our employees will receive the customers’ order and then, our employees will check the price tell the customers. If the customer need to order our product, our employees will repeat the customers’ order and ask for give the customers’ address for deliver. The

75
company will sent the order’s products to the customers free in 20 kilometers if the customers buy over 2,000 Baht. If there are more than 20 kilometers or the customers buy less than 2,000 Baht, our company will charge fuel cost follow the distance.

Who wants to get some advice, the company process to serve the customers. Firstly, our employees will get the trouble from the customer. If our employees can answers the customers’ trouble, they will answer clearly and politeness. If it is not, our company will help the customers who has advance cultivate trouble by the expert person.


For after sale services processes There are two types of service process follow.

1. Deliver service is the after sale services that increase the convenient to attract the customers to order our product by the company will buy cars for use to deliver our product follow this process:


The customers buy our product in front of our company or ordered by call to our company. The company asks the address of appointment place from our customers. The company delivered our products free in 20 kilometers for customers who buy more than 2,000 Baht, if customer. If it more than 20 kilometers or buy less than 2,000 Baht, the company will charges follow the distance. For the customers who order by call, the company will make the payment when the products arrive to the customers.

2. Setting up of equipment service is the service that the company will go to set up equipment at appointment place of customer. The process of this service is follow:


The customers buy our product in front of our company or ordered by call to our company. The company asks the address of appointment place from our customers. The company will send the trained employees to set up the equipment at appointment place of the customers and take some advice that how to use some the equipments.

76 4.1.4. Location

My company is located that near Boon Rod farm. The company is located 15km. south from Chaing Rai city in Dongmada Road. See Figure 1 and Figure 2 for site location.

Figure 7: Shop Location

Note: Own graphic
Figure 8: Example of location of our company

Note: Own graphic

77 Red area is located in mae korn village amphur Muang chiang Rai situated in the northern plateau and suitable for cultivating shiitake mushrooms. -

Low temperature approximately 25-35 degree. Located near a pool which is perfectly for growing shiitake mushrooms by receiving humidity from the steam in the air.

-

Close to hill sceneries and surrounding with trees, makes it perfect for growing shiitake mushrooms.

-

Adequate area to build a mushroom growing house. The mushroom growing house is not far from Choke Charoen market

-

4.1.5. Farm Layout

Figure 9: Example of farm layout

Note: Own graphic

78 Yellow area is office inoculation room. Black area is grading court. Blue area is Spawning court. Green area is growing house. Orange area is a store room. Purple area is inoculation room. Ultramarine area is sperm break room. Red area is fruiting house.

-

4.1.6. Logistics Management

The customers who buying over 2,000 Baht, we have special option to send our product at appointment place free in 20 kilometers area. If it more than 20 kilometers, our company will charge fuel cost following the distance. But if customer buy product

less than 2,000 baht I will charge fuel cost following the distance too by calculate fuel
cost is 1 liter Per 15 kilo mate which calculate follow fuel cost of each day.

-

4.1.7. Organization management

Manager
Male or female Age more than 30 years Bachelor’s Degree in business administration or related fields Experienced in management before High Creativity and Responsibility Good personality and Good communication in Thai and English Well command

Account
Male or female Age more than 25 years Bachelor’s degree in accounting Experienced in accounting 2 – 3 years before Know very well in law that related with tax Good coordinator with other department

79

Expert
Male or female Age more than 28 years Bachelor’s Degree in related fields Experienced in consulting about shiitake mushroom before High Responsibility Good personality and Good communication in Thai and English

Employee
Male or female Age between more than 20 Secondary school degree Healthy and strong personality High Responsibility

Transportation
Male Age between 20 – 40 years Secondary school degree Having a driver license Healthy and strong personality Experienced in transport products Know very well in Chiang Rai map High Responsibility

80 4.1.8. Machine/Tools/ Equipments

Table 10: Machine/Tools/ Equipments Sawdust mix machine - Several supplements can be added such as fertilizer, pet food, sawdust and mixed soil for growing trees. - Work by Hitachi 3 HP engine control motor power 220 V. - Can screen 250 kg. - approximately time 5 minutes, and can screen the ingredients 2250 in one hour, and in a day (8 hours.) can screen up to18,000 kilos. - Easy to move , strong wheels that durable for the heavy ingredients whether its dry or wet ingredients without effecting the structure of the machine.

Boil cabinet - Steaming machine with regular standard size the roof is designed curvy to restrain from water drop. - Has a thermo meter to measure temperature able to move spawn in and out comfortably. - Use grate can contain 2,000 chunks.

Pressure pot Contains 850 small whiskey bottles and 400 big bottles.

81

Pack machine

-

-

With mitsubishi 0.5 HP motor make regular force of the engine Has wheels easy to move and keep Able to pack 20 bags/mins with standard size,reduce the problems in hitting hands and save time and save people

Sperm remove needle

Chair TK 35-A (57W x 58D x 85H)

Table
Size is 80 cm.

Jelly shelf 6 level shelter 120*60*182 cms. bears 250-300 kgs.

Shiitake shelf

- 50x120x180 cms.
details : + industry standardize steel + alternate steel 1-1/2" x 11/2" or 2-1/4" x 1-1/2" + covered with steel/plywood

82

Weighing machine

-

Highest weight bearing 2000kgs. Base size 100 x 110cms. heights 121cms. Pillar made of sticky steel and the base made of molding steel.

Water cooler Height: 38.75" - Width: 13" Weight: 33 lbs. Elegant rounded design complements any style of home or office decor, softens features and reduces damage. All coolers are sealed and sanitized at the factory and arrive ready for installation. Easy clean 1-piece, UV resistant HDPE cabinet Auto temp adjust on hot tank eliminates need to set the hot temperature in high altitudes. High-quality, high output Panasonic, Sanyo or Samsung compressors for reliable, efficient performance

-

-

-

Telephone

Pot
Authentic stainless width 0.9 mm. Diameter 60 cms. depth 28 cms.

83

Threshing basket

Basin
- contains 1 X 6 - Size 63 X 36 X 47 cm - Grade A PP plastic materials. - 2 strong handles available in colors. - Containing water Do not place near fire Bottleneck Diameter 1 inch h 1 inch.

Knife Size: 7 inch

Alcohol lamp

Ladle

84

Pay Kaw

Flat bottle

Plastic band

Cotton

Liquefied petroleum gas

Plastic bag

85

Newsprint

Basket

Broom Size : cm widht 49 cms. lenght 116 cms. Weight : g 415 grams

Fan
Plastic: ABS Motor: 66 x 14mm , Two round pin plug, Four switching and one lamp/or a timer for an hour, Shakes for 90°

Flush toilet

86

Faucet

Pushcart Made from strong steel pipes welding every part - With CO2 technology makes the welding comes out neat and strong. - 2 wheeled pushcart MH-PSM 100 Ause in technology for oil color industry hi fumed for endurance of the product - Assembled with plate steel with imported bullet from japan No.6204 - Endures 100 kilo weight - Dimension 400x350x800 mm. VIGO Car (second hand) White colour 2500 engine year ’48 used 100,000 kilometers manually gear white aluminum roof gray leathered cushion has a tape cassette player , 3 years usage.

Air conditioner (second hand) 26000 BTU

Gas stove Surface is a grade A stainless material made Pellets are made of ceramic which gives heat up to 1000 C Kindles gas automatically save energy and levels are changeable gives high heat and save gas more than other stoves 30-40%

87

Calculator Feature of the calculator Casio FX570MS : - Multi-replay function – matrix calculation - Polynomial, Simutanous calculation – vector calculation – differential calculation – 2 lines resulting. Washbasin

Weighing machine

Stainless weighting machine grade 304 sizes 35, 60 kilos.

88 4.2. Investment cost Table 11: Investment cost

Investment Pre investment building water system Total Office Chair Table calculator Telephone
water cooler

Baht 1,000,000 115,000

unit ฿ ฿

use 1 1

unit

Total 1,000,000 115,000 1,115,000 2,700 1,990 500 500 3,350 12,000 1,900 990 600 250 24,780 22,500 117,000 32,000 37,000 9,600 36,000 280,000 20,000 5,000 83,600 4,400 1,190 33,750 682,040 1,821,820 ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿ ฿

office supply
Flush toilet Washbasin

fan Faucet Total Equipment
pressure pot boil cabinet pack machine sawdust mix machine sperm remove cabinet

900 1,990 500 500 3,350 12,000 1,900 990 600 250

฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/year ฿/unit ฿/unit ฿/unit ฿/unit

3 1 1 1 1 1 1 1 1 1

Air conditioner Car
weighing machine weighing machine mushroom shelf jelly shelf gas stove sieve

22,500 39,000 32,000 37,000 3,200 6,000 280,000 20,000 5,000 1,900 2,200 1,190 45

฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit

1 3 1 1 3 6 1 1 1 44 2 1 750

Total Total investment

฿

89 Building Our company hired engineers for the entire project for prepaid. Office and inoculation room - Width 3 meters length 7 meter heights 2.5 meters 2rooms are connected. Grading court is an area where we grade shiitake to manufactures in the markets has dimension width 3 meters length 3 meters and heights 2.5 meters. Growing house has 2 houses each of the house has width 88 meters lenght 72 meters heights 1.8 meters each shitake house can store spawn 51,000 chunks. Fruiting house has two types. 1. building a fruiting house width 8 meters length 8 meters heights 2.5 meters and able to pick shiitake for 36000 shiitakes for each house. 2. build a room to fruiting shiitake width 8 meters length 7 meters heights 2.5 meters and able to pick shiitake for 30000 shiitakes. Storing houses there are two, each of the store has width 33 meters length 6 meters heights 2.2 meters able to store spawn52,500 chunks. A store room is 4x4 dimension 1 roomใ Spawning court is 6x6x3 dimension. Water system Spraying system, installed at growing houses and inoculation room and office

90 Depreciation Table 12: Depreciation
Depreciation building water system Chair Table calculator Telephone water cooler Flush toilet Washbasin fan Faucet pressure pot boil cabinet pack machine sawdust mix machine sperm remove cabinet Air conditioner Car weighing machine weighing machine shiitake shelf jelly shelf gas stove sieve for put shiitake 1,000,000 115,000 900 1,990 500 500 3,350 1,900 990 600 250 22,500 39,000 32,000 37,000 3,200 6,000 280,000 20,000 5,000 1,900 2,200 1,190 45 ฿ ฿ ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit 1 1 3 1 1 1 1 1 1 1 1 1 3 1 1 3 6 1 1 1 44 2 1 750 Total 1,000,000 115,000 2,700 1,990 500 500 3,350 1,900 990 600 250 22,500 117,000 32,000 37,000 9,600 36,000 280,000 20,000 5,000 83,600 4,400 1,190 33,750 use time 20 10 5 5 5 5 5 5 5 5 5 5 10 10 5 5 10 5 10 10 10 5 5 20 per year 50,000 11,500 540 398 100 100 670 380 198 120 50 4,500 11,700 3,200 7,400 1,920 3,600 56,000 2,000 500 8,360 880 238 1,688 per month 4,167 958 45 33 8 8 56 32 17 10 4 375 975 267 617 160 300 4,667 167 42 697 73 20 141

91

Total depreciation

1,809,820

185

166,042

13,837

office supply

12,000

฿/year

1

-

12,000 1,821,820

1

12,000

1,000

92 4.3. Operating Cost
4.3.1. Raw material Cost

Table 13: Raw material Cost
Y1 Per unit ฿/tones ฿/kg ฿/20g ฿/unit ฿/50g ฿/kg ฿/kg ฿/kg ฿/50kg ฿/25kg ฿/tones ฿/unit ฿/kg ฿/unit ฿/unit ฿/kg ฿/unit ฿/unit ฿/kg ฿/unit ฿/unit ฿/unit ฿/kg ฿/unit ฿/unit ฿/unit ฿/unit ฿/kg ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit ฿/unit Y2 7% total 15,013 30,816 24 64 23 23,626 32 12,840 16,435 2,465 2,054 2,996 80 289 96 54 86 12,733 5 3,852 21 171 6,955 214 3,852 21 16 128 96 193 1,445 71 21 12,840 149,629 Y3 7% total 16,064 32,973 26 69 25 25,279 34 13,739 17,586 2,638 2,198 3,206 86 309 103 57 92 13,624 6 4,122 23 183 7,442 229 4,122 23 17 137 103 206 1,546 76 23 13,739 160,103

Raw material sawdust fice bra dactos sugar alcohol jelly brown sugar potato millet seed gypsum magnesium sulfate white cement Pay kaw potassium permanganate alcohol lamp sperm remove needle plastic band ladle flat bottle newsprint pot cow's intestine basin hot plastic bag threshing basket liquid gas nilon net lighter cotton basket knife pushcart box percolate cloth bottleneck

Baht 1,900 6 15 20 36 23 50 12 400 300 2,000 280 75 90 30 50 40 3.5 5 1,800 10 80 65 20 900 10 5 120 15 30 450 22 10 120

use 96,000 4,800 30 3 30 960 1 1,000 1,920 192 960 10 1 3 3 1 2 3,400 1 2 2 2 100 10 4 2 3 1 6 6 3 3 2 100,000

unit Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. liter kg unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit

total 14,031 28,800 23 60 22 22,080 30 12,000 15,360 2,304 1,920 2,800 75 270 90 50 80 11,900 5 3,600 20 160 6,500 200 3,600 20 15 120 90 180 1,350 66 20 12,000 139,840 279679.738

93
4.3.2. Direct labor cost

Table 14: Direct labor cost
Per month Per month Per month Per month Per month Per month Per month

Salary Manager Accountant Expert Employee Transporatation Total

Baht 10000 2900 8000 5200 5200

use 1 1 1 3 1

total 10000 2900 8000 15600 5200 41700

-

4.3.3. Utility expense cost

Table 15: Utility expense cost ฿/month ฿/month ฿/month ฿/month ฿/month

Utility expense water supply electricity Telephone Total
Telephone

baht 1000 3000 300 4300

The company has installed one telephone in the office to use for the business, such as ordering products and contacting customers. The amount of telephone usage is estimated to be 50 times per month, with telephone fee for 3 Baht per one call.

-

4.3.4. Rental fee

Rental fee is 10,000 baht per year.

94

4.4. Organization Cost Organization Cost is pay equal all months.

95

Table 16 : Organization Cost

Jan Rent Salary Transportation Depreciation Office supply Utility expense Total 10,000 41,700 5,200 13,837 1,000 4,300 66,037

Feb 0 41,700 5,200 13,837 1,000 4,300 66,037

Mar 0 41,700 5,200 13,837 1,000 4,300 66,037

Apr 0 41,700 5,200 13,837 1,000 4,300 66,037

May 0 41,700 5,200 13,837 1,000 4,300 66,037

Jun 0 41,700 5,200 13,837 1,000 4,300 66,037

Jul 0 41,700 5,200 13,837 1,000 4,300 66,037

Aug 0 41,700 5,200 13,837 1,000 4,300 66,037

Sep 0 41,700 5,200 13,837 1,000 4,300 66,037

Oct 0 41,700 5,200 13,837 1,000 4,300 66,037

Nov 0 41,700 5,200 13,837 1,000 4,300 66,037

Dec 0 41,700 5,200 13,837 1,000 4,300 66,037

Total 10,000 500,400 62,400 166,042 12,000 51,600 792,442

96

4.4. Conclusion

Shiitake is one of the most popular and expensive mushroom in Thai markets that grows well in a low temperature usually grow on logs but at present shiitake were changed to bag cultivation using sawdust. Shiitake is high in protein and has medical beneficial to cure disease such as Lentina has a qualification to reduce cholesterol and Eeitaainin prevents tumors in stomach and allergy. Our freshly picked shiitake can be found all year round with no contaminants and high quality during the process of cultivation. This company divides are 6 zone for efficiency to cultivation. Our company which we believe will result in the sales and productions once the service turns out nicely, word of mouth also makes a double belief for quality and services of our company towards beloved customers. And for important festivals we will gift the customers showing our loyalty can never fade such as a calendar, shirt, a tote every year Employee is important part of company; they are main point to force our company in order to achieve a goal. The positions for employees consist of managers, experts, transportation manager, employee and accountant. The company sets standard and select people with sufficient skills and quality to become employees, to execute the expected performance for the company.

97

98

5.1. Income Statement Table 17: Three year - Income Statement Year 1
Jan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Feb 0 14,031 28,800 23 60 22 22,080 30 12,000 15,360 2,304 1,920 2,800 75 270 90 50 80 11,900 5 3,600 Mar 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Apr 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 May 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Jun 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Jul 180,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Aug 180,000 14,031 28,800 23 60 22 22,080 30 12,000 15,360 2,304 1,920 2,800 75 270 90 50 80 11,900 5 3,600 Sep 180,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Oct 180,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Nov 135,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Dec 135,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total 990,000 28,062 57,600 45 120 43 44,160 60 24,000 30,720 4,608 3,840 5,600 150 540 180 100 160 23,800 10 7,200

Sale COGS sawdust rice bra dactos sugar alcohol jelly brown sugar potato millet seed gypsum maganesium sulfate white cement pay kaw potassium permanganate clcohol lamp sperm remove needle plastic band ladle flat bottle newsprint pot

99

cow's intestine basin hot plastic bag threshing basket liquid gas nilon net lighter cotton basket knife pushcart box percolate cloth bottleneck Total COGS Gross profit Mkt expense Sales Promotion Transportation Event Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0

20 160 6,500 200 3,600 20 15 120 90 180 1,350 66 20 12,000 139,840 -139,840 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0

20 160 6,500 200 3,600 20 15 120 90 180 1,350 66 20 12,000 139,840 40,160 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0

40 320 13,000 400 7,200 40 30 240 180 360 2,700 132 40 24,000 279,680 710,320

180,000

180,000

180,000

135,000

135,000

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 2,400 0 2,400

0 2,400 0 2,400

0 2,400 0 2,400

0 2,400 0 2,400

0 2,400 0 2,400

1,000 2,400 0 3,400

1,000 14,400 0 15,400

100

Org. expense Rent Salary Transporatation Depreciation Office supply Utility expense Total EBIT Tax Interest Net income

10,000 41,700 5,200 13,837 1,000 4,300 76,037 -76,037 0 30,000 -106,037

0 41,700 5,200 13,837 1,000 4,300 66,037 -205,877 0 29,713 -235,590

0 41,700 5,200 13,837 1,000 4,300 66,037 -66,037 0 29,424 -95,461 437,088

0 41,700 5,200 13,837 1,000 4,300 66,037 -66,037 0 29,132 -95,169 532,257

0 41,700 5,200 13,837 1,000 4,300 66,037 -66,037 0 28,837 -94,873 627,130

0 41,700 5,200 13,837 1,000 4,300 66,037 -66,037 0 28,539 -94,575 721,705

0 41,700 5,200 13,837 1,000 4,300 66,037 111,563 33,469 28,237 49,857

0 41,700 5,200 13,837 1,000 4,300 66,037 -28,277 0 27,933 -56,210

0 41,700 5,200 13,837 1,000 4,300 66,037 111,563 33,469 27,626 50,468

0 41,700 5,200 13,837 1,000 4,300 66,037 111,563 33,469 27,316 50,778

0 41,700 5,200 13,837 1,000 4,300 66,037 66,563 0 27,003 39,561

0 41,700 5,200 13,837 1,000 4,300 66,037 65,563 0 26,686 38,877

10,000 500,400 62,400 166,042 12,000 51,600 802,442 -107,521 100,407 340,446 -548,374

Retain earning

-106,037

-341,627

-671,848

-728,058

-677,590

-626,812

-587,251

-548,374

-548,374

101

Year 2
Jan 189,000 Feb 189,000 12,840 149,629 189,000 39,371 252,000 252,000 252,000 252,000 252,000 Mar 252,000 Apr 252,000 May 252,000 Jun 252,000 Jul 252,000 Aug 252,000 12,840 149,629 102,371 252,000 252,000 189,000 189,000 Sep 252,000 Oct 252,000 Nov 189,000 Dec 189,000 Total 2,772,000 25,680 299,257 2,472,743

Sale bottleneck Total COGS Gross profit Mkt expense Sales Promotion Transportation Event Total Org. expense Rent Salary Transporatation Depreciation Office supply Utility expense Total

0 2,400 5,000 7,400

0 2,400 0 2,400

0 2,400 0 2,400

500 2,400 0 2,900

0 2,400 0 2,400

0 2,400 0 2,400

0 2,400 0 2,400

0 2,400 0 2,400

0 2,400 0 2,400

0 2,400 0 2,400

0 2,400 0 2,400

1,000 2,400 0 3,400

1,500 28,800 5,000 35,300

10,000 41,700 5,200 13,837 1,000 4,300 76,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

10,000 500,400 62,400 166,042 12,000 51,600 802,442

102

EBIT Tax Interest Net income

105,563 31,669 26,366 47,528

-29,065 0 26,044 -55,109

183,563 55,069 25,717 102,777 453,178

183,063 54,919 25,388 102,756 350,422

183,563 55,069 25,056 103,439 246,984

183,563 55,069 24,720 103,775 143,209

183,563 55,069 24,380 104,114

33,935 0 24,038 9,897

183,563 55,069 23,691 104,803

183,563 55,069 23,342 105,152

120,563 36,169 22,989 61,405

119,563 35,869 22,632 61,062

1,635,001 489,040 294,363 851,599

Retain earning

-500,846

-555,955

-39,095

-29,198

75,605

180,757

242,163

303,225

303,225

103

Year 3
Jan 226,800 0 226,800 Feb 226,800 160,103 66,697 Mar 302,400 0 302,400 Apr 302,400 0 302,400 May 302,400 0 302,400 Jun 302,400 0 302,400 Jul 302,400 0 302,400 Aug 302,400 160,103 142,297 Sep 302,400 0 302,400 Oct 302,400 0 302,400 Nov 226,800 0 226,800 Dec 226,800 0 226,800 Total 3,326,400 0 320,205 3,006,195

Sale COGS Total COGS Gross profit Mkt expense Sales Promotion Transportation Event Total Org. expense Rent Salary Transporatation Depreciation Office supply Utility expense Total

0 2,400 5,000 7,400

0 2,400 0 2,400

0 2,400 0 2,400

500 2,400 0 2,900

0 2,400 0 2,400

0 2,400 0 2,400

0 2,400 0 2,400

0 2,400 0 2,400

0 2,400 0 2,400

0 2,400 0 2,400

0 2,400 0 2,400

1,000 2,400 0 3,400

1,500 28,800 5,000 35,300

10,000 41,700 5,200 13,837 1,000 4,300 76,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

0 41,700 5,200 13,837 1,000 4,300 66,037

10,000 500,400 62,400 166,042 12,000 51,600 802,442

104

EBIT Tax Interest Net income Retainearning

143,363 43,009 22,272 78,082 381,307

-1,739 0 21,908 -23,648 357,660

233,963 70,189 21,541 142,234 499,893

233,463 70,039 21,170 142,255 642,148

233,963 70,189 20,795 142,979 785,127

233,963 70,189 20,416 143,358 928,485

233,963 70,189 20,034 143,740 1,072,225

73,861 0 19,648 54,213 1,126,438

233,963 70,189 19,258 144,517 1,270,955

233,963 70,189 18,864 144,910 1,415,865

158,363 47,509 18,466 92,388 1,508,253

157,363 47,209 18,064 92,090 1,600,344

2,168,453 628,900 242,435 1,297,119 1,600,344

105

5.2. Cash flow Table18: Three year - Cash flow Year 1
Jan Cash flow from operating activities Cash received from customer Cash paid Raw material Sales Promotion Transportation Event Rent Salary Transporatation Office supply Utility expense Interest Tax income Cash paid from cash 180,000 180,000 180,000 180,000 135,000 135,000 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

10,000 41,700 5,200 1,000 4,300 30,000 92,200

139,840 41,700 5,200 1,000 4,300 29,713 221,753

41,700 5,200 1,000 4,300 29,424 81,624

41,700 5,200 1,000 4,300 29,132 81,332

41,700 5,200 1,000 4,300 28,837 81,037

41,700 5,200 1,000 4,300 28,539 80,739

2,400 41,700 5,200 1,000 4,300 28,237 33,469 116,306

139,840 2,400 41,700 5,200 1,000 4,300 27,933 222,373

2,400 41,700 5,200 1,000 4,300 27,626 33,469 115,695

2,400 41,700 5,200 1,000 4,300 27,316 33,469 115,385

2,400 41,700 5,200 1,000 4,300 27,003 81,603

1,000 2,400 41,700 5,200 1,000 4,300 26,686 82,286

106

Net cash provided by operating activities Cash flow from investing activities Pre investment Net cash provide by investing activities Cash flow from financial activities Borrowing Re-Payment Net cash provide by financial activities

92,200

221,753

81,624

81,332

81,037

80,739

63,694

42,373

64,305

64,615

53,397

52,714

1,821,820 1,821,820

-

-

-

-

-

-

-

-

-

-

-

3,000,000 28,651 2,971,349 28,937 28,937 250,690 1,057,329 806,639 29,226 29,226 110,851 806,639 695,788 29,519 29,519 110,851 695,788 584,938 29,814 29,814 110,851 584,938 474,087 30,112 30,112 110,851 474,087 363,237 30,413 30,413 30,717 30,717 73,090 396,517 323,427 31,024 31,024 31,335 31,335 31,648 31,648 31,965 31,965

Net increase/decrease in cash Cash at the beginning of month Cash at the ending of month

1,057,329 1,057,329

33,280 363,237 396,517

33,280 323,427 356,707

33,280 356,707 389,988

21,749 389,988 411,737

20,749 411,737 432,486

107

Year 2
Jan Cash flow from operating activities Cash received Cash paid Raw material Sales Promotion Transportation Event Rent Salary Transporatation Office supply Utility expense Interest Tax income Cash paid from cash Net cash provided by operating activities 189,000 189,000 252,000 252,000 252,000 252,000 252,000 252,000 252,000 252,000 189,000 189,000 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2,400 5,000 10,000 41,700 5,200 1,000 4,300 26,366 31,669 127,635

149,629 2,400 41,700 5,200 1,000 4,300 26,044 230,272 41,272

2,400 41,700 5,200 1,000 4,300 25,717 55,069 135,386

500 2,400 41,700 5,200 1,000 4,300 25,388 54,919 135,407

2,400 41,700 5,200 1,000 4,300 25,056 55,069 134,724

2,400 41,700 5,200 1,000 4,300 24,720 55,069 134,389

2,400 41,700 5,200 1,000 4,300 24,380 55,069 134,049

149,629 2,400 41,700 5,200 1,000 4,300 24,038 228,266

2,400 41,700 5,200 1,000 4,300 23,691 55,069 133,360

2,400 41,700 5,200 1,000 4,300 23,342 55,069 133,011

2,400 41,700 5,200 1,000 4,300 22,989 36,169 113,758

1,000 2,400 41,700 5,200 1,000 4,300 22,632 78,232

61,365

116,614

116,593

117,276

117,611

117,951

23,734

118,640

118,989

75,242

110,768

108

Cash flow from investing activities Pre investment Net cash provided by investing activities Cash flow from financial activities Borrowing Re-Payment Net cash provide by financial activities 32,284 32,284 32,607 32,607 73,879 461,567 387,688 32,933 32,933 33,262 33,262 33,595 33,595 33,931 33,931 34,270 34,270 34,613 34,613 10,879 805,740 794,861 34,959 34,959 35,309 35,309 35,662 35,662 36,018 36,018

Net increase/decrease in cash Cash at the beginning of month Cash at the ending of month

29,080 432,486 461,567

83,680 387,688 471,368

83,330 471,368 554,699

83,680 554,699 638,379

83,680 638,379 722,060

83,680 722,060 805,740

83,680 794,861 878,541

83,680 878,541 962,222

39,580 962,222 1,001,802

74,749

1,001,802

1,076,552

109

Year 3
Jan Cash flow from operating activities Cash received Cash paid Raw material Sales Promotion Transportation Event Rent Salary Transporatation Office supply Utility expense Interest Tax income Cash paid from cash Net cash provide by operating activities 226,800 226,800 302,400 302,400 302,400 302,400 302,400 302,400 302,400 302,400 226,800 226,800 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2,400 5,000 10,000 41,700 5,200 1,000 4,300 22,272 43,009 134,881

160,103 2,400 41,700 5,200 1,000 4,300 21,908 236,611 9,811

2,400 41,700 5,200 1,000 4,300 21,541 70,189 146,330

500 2,400 41,700 5,200 1,000 4,300 21,170 70,039 146,309

2,400 41,700 5,200 1,000 4,300 20,795 70,189 145,584

2,400 41,700 5,200 1,000 4,300 20,416 70,189 145,205

2,400 41,700 5,200 1,000 4,300 20,034 70,189 144,823

160,103 2,400 41,700 5,200 1,000 4,300 19,648 234,350

2,400 41,700 5,200 1,000 4,300 19,258 70,189 144,047

2,400 41,700 5,200 1,000 4,300 18,864 70,189 143,653

2,400 41,700 5,200 1,000 4,300 18,466 47,509 120,575

1,000 2,400 41,700 5,200 1,000 4,300 18,064 47,209 120,873

91,919

156,070

156,091

156,816

157,195

157,577

68,050

158,353

158,747

106,225

105,927

110

Pre investment Net cash provide by investing activities Cash flow from financial activities Borrowing Re-Payment Net cash provide by financial activities

35,869 35,869

36,379 36,379

36,742 36,742 46,553 1,096,223 1,049,670

37,110 37,110

37,481 37,481

37,856 37,856

38,234 38,234

38,617 38,617

39,003 39,003

39,393 39,393

39,787 39,787

40,185 40,185

40,586 40,586

Net increase/decrease in cash Cash at the beginning of month Cash at the ending of month

19,671 1,076,552 1,096,223

118,960 1,049,670 1,168,630

118,610 1,168,630 1,287,241

118,960 1,287,241 1,406,201

118,960 1,406,201 1,525,162

118,960 1,525,162 1,644,122

29,047 1,644,122 1,673,169

118,960 1,673,169 1,792,129

118,960 1,792,129 1,911,090

66,040 1,911,090 1,977,130

65,340 1,977,130 2,042,471

111

5.3. Balance sheet Table 19: Three year - Balance sheet Year 1
Jan Asset Cash Office Equipment Building accru dept Total asset liability long-term retain earning total 2,971,349 106,037 2,865,313 2,942,412 341,627 2,600,785 2,913,186 437,088 2,476,098 2,883,667 532,257 2,351,411 2,853,853 627,130 2,226,723 2,823,741 721,705 2,102,036 2,793,328 671,848 2,121,480 2,762,611 728,058 2,034,552 2,731,586 677,590 2,053,996 2,700,252 626,812 2,073,440 2,668,604 587,251 2,081,352 2,636,639 548,374 2,088,265 1,057,329 24,780 682,040 1,115,000 13,837 2,865,313 806,639 24,780 682,040 1,115,000 27,674 2,600,785 695,788 24,780 682,040 1,115,000 41,510 2,476,098 584,938 24,780 682,040 1,115,000 55,347 2,351,411 474,087 24,780 682,040 1,115,000 69,184 2,226,723 363,237 24,780 682,040 1,115,000 83,021 2,102,036 396,517 24,780 682,040 1,115,000 96,858 2,121,480 323,427 24,780 682,040 1,115,000 110,694 2,034,552 356,707 24,780 682,040 1,115,000 124,531 2,053,996 389,988 24,780 682,040 1,115,000 138,368 2,073,440 411,737 24,780 682,040 1,115,000 152,205 2,081,352 432,486 24,780 682,040 1,115,000 166,042 2,088,265 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

112

Year 2

Jan Asset Cash Office Equipment Building accru dept Total asset liability long-term retain earning total 2,604,355 500,846 2,103,509 461,567 24,780 682,040 1,115,000 179,878 2,103,509

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

387,688 24,780 682,040 1,115,000 193,715 2,015,793

471,368 24,780 682,040 1,115,000 207,552 2,085,636

554,699 24,780 682,040 1,115,000 221,389 2,155,130

638,379 24,780 682,040 1,115,000 235,225 2,224,974

722,060 24,780 682,040 1,115,000 249,062 2,294,817

805,740 24,780 682,040 1,115,000 262,899 2,364,661

794,861 24,780 682,040 1,115,000 276,736 2,339,945

878,541 24,780 682,040 1,115,000 290,573 2,409,789

962,222 24,780 682,040 1,115,000 304,409 2,479,632

1,001,802 24,780 682,040 1,115,000 318,246 2,505,376

1,076,552 24,780 682,040 1,115,000 332,083 2,566,289

2,571,748 555,955 2,015,793

2,538,815 453,178 2,085,636

2,505,552 350,422 2,155,130

2,471,957 246,984 2,224,974

2,438,026 143,209 2,294,817

2,403,756 39,095 2,364,661

2,369,143 29,198 2,339,945

2,334,184 75,605 2,409,789

2,298,875 180,757 2,479,632

2,263,213 242,163 2,505,376

2,227,195 303,225 2,530,420

113

Year 3
Jan Asset Cash Office Equipment Building accru dept Total asset liability long-term retain earning total 2,190,816 381,307 2,572,123 2,154,074 357,660 2,511,733 2,116,964 499,893 2,616,857 2,079,483 642,148 2,721,631 2,041,627 785,127 2,826,754 2,003,393 928,485 2,931,878 1,964,776 1,072,225 3,037,002 1,925,773 1,126,438 3,052,212 1,886,380 1,270,955 3,157,335 1,846,594 1,415,865 3,262,459 1,806,409 1,508,253 3,314,663 1,765,823 1,600,344 3,366,166 1,096,223 24,780 682,040 1,115,000 345,920 2,572,123 1,049,670 24,780 682,040 1,115,000 359,757 2,511,733 1,168,630 24,780 682,040 1,115,000 373,593 2,616,857 1,287,241 24,780 682,040 1,115,000 387,430 2,721,631 1,406,201 24,780 682,040 1,115,000 401,267 2,826,754 1,525,162 24,780 682,040 1,115,000 415,104 2,931,878 1,644,122 24,780 682,040 1,115,000 428,941 3,037,002 1,673,169 24,780 682,040 1,115,000 442,777 3,052,211 1,792,129 24,780 682,040 1,115,000 456,614 3,157,335 1,911,090 24,780 682,040 1,115,000 470,451 3,262,459 1,977,130 24,780 682,040 1,115,000 484,288 3,314,662 2,042,471 24,780 682,040 1,115,000 498,125 3,366,166 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

114

5.4. Project Analysis

Profit margin This ratio is the percentage of sales dollars left after subtracting the Cost of Goods sold and all expenses, except income taxes. That can see the opportunity of shiitake cultivate that are being increase continually.

Return on asset (ROA) Shiitake cultivate measures how efficiently profits per baht of assest that generate in the business. Which the opportunity shiitake cultivate businesst are increase continually.

Return on investment Shiitake cultivate measure the percentage of return on funds invested in the business in short, this ratio has effort put into the business has been worthwhile with investor. That can see the high result which it is chance to success.

Asset turnover Shiitake cultivate measures the efficiency of a company's use of its assets in generating Revenue to the company. The opportunity of shiitake cultivate that are increase continually.

Time interest earn Shiitake cultivate is measure long-term solvency that company can pay more than double time and tell us whether company has money to pay for its interest or not.

115

Conclusion

In this chapter, the three financial statements use monthly based. First of all, the Income statement show that the revenue and cost. The Cash flow statement shows the cash in hand that company has in order to operate, cash at beginning of period is about 2 million baht. This cash is deducted from operating and investing. The cash in hand has been increasing every year until the three year. The Balance sheet statement also decrypts proportion of money that company has, our company has long-term debt 3,000,000 baht and our company will pay to investor with thin 6 years, the interest rate 12%. This

information can be concluding that there is feasibility in the financial of shiitake cultivate.

116

117 Summary
From this project feasibility, we have found about shiitake mushroom cultivate business is increase customer demand and less fresh shiitake but a lot of fresh shiitake in winter only which the present more customer demand than fresh shiitake. This project is practical as the number and information have shown opportunities in this business. The market of shiitake mushroom cultivate industry is little, with large demand; the current existing competitors’ supply is still not enough to satisfy all demand of the market. Moreover, shiitake mushroom cultivate is considered a business with high competitive strength. According to the field study in Chok-charearn market by the research the information about that. Which information is supported by the current market situation, economic and social condition of Chiang Rai or Thailand. In sale forecast, our company forecast the revenue and expense from number of wholesaler in targeting market. Our sale is related with seasoning of crop. Moreover, as our company is new entry, the customers do not know us as well. Therefore, marketing communication mixed is used in order to attract customers that make them to know and recognize our company such as radio, sale promotion, event and gift. We forecast sale estimate in three years, the accumulate sale is approximate 3,000,000 baht in three years. We think first years our product loses time to produce about sperm so less sale, but after that, our sale has been increasing higher. In Chiang Rai have many farms and have old customer of them. So our company concern about services. Our company gives information to our customer about their problem by advice all of our customers with good condition to keep relationship. Employee is important part of company; they are main point to force our company in order to achieve a goal. The positions for employees consist of shiitake cultivate experts, transportation, manager, accountant and employee. The company sets standard and select people with sufficient skills and quality to become employees, to execute the expected performance for the company. . According to the number being referred from this project study, we can see that the number in customer demand is high, because the present, less fresh shiitake and a lot in the winter only. Furthermore, the economic situations have high gasoline so bring about to high sawdust. From the studied and analyzed information in this project, the demand customer is high which not enough to demand of customer and supplier with a continuously growing rate. It is a business in which can be the answer for investor.

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